Honeywell

The company’s Q4Fy15 ended on a pretty disappointing note and all because of an exceptional expense of Rs.13 crore, which was an adjustment made to costs on incorrect projects and this amount was the provision made for future losses. This, plus a 11% (YoY) rise in costs and a tepid 6% rise in net sales at Rs.433 crore, led to the company recording a net profit of Rs.7 crore, down 72% (YoY) and down 69% (QoQ). Tax expense for the quarter was halved from Rs.12 crore to Rs.6 crore (YoY).

The company ended FY15 (15-month year) with a net profit of Rs.114 crore, up 32%. It’s equity is pretty small at Rs.8.84 crore and reserves is at very healthy Rs.873 crore. For long, it has been a bonus candidate and that is not forthcoming. The company is also not using the money to plough it back for organic or inorganic growth. It remains debt free with promoters stake at 75% and DIIs seem to have special liking for this stock, with a 14.83% stake. EPS for FY15 (face value Rs.10) stands at Rs.129 and this discounts the current price by 59 times.