Honeywell Electrical Unlisted Shares
Buy - ₹5500.00
Sell - ₹N/A
About Honeywell Electrical Unlisted Shares
1. About Honeywell Electrical Devices and Systems India Limited (HEDSIL)
Honeywell Electrical Devices and Systems India Limited (HEDSIL), established in 1984 and headquartered in Chennai, Tamil Nadu, is a leading manufacturer and trader of electrical devices and control systems. Known for its cutting-edge technology and innovation, the company has been a prominent player in India’s electrical equipment market for nearly four decades. HEDSIL’s product portfolio includes wiring devices, cable management solutions, lighting management systems, circuit protection products, and more. Over the years, the company has focused on providing high-quality products that cater to a diverse set of industries, including residential, commercial, and infrastructure sectors.
HEDSIL is known for its resilience in the face of changing market conditions and has earned a reputation for its consistent product innovation, market expansion, and strong customer base. The company has successfully integrated new technologies and launched multiple products to meet evolving customer needs.
2. Business Divisions
HEDSIL operates through several key business divisions that serve both domestic and international markets:
- Residential Segment:
HEDSIL has witnessed substantial growth in the residential sector, driven by real estate developers reducing inventories and a surge in home loan disbursements. The residential market growth was further fueled by a strong festive season demand. HEDSIL’s product offerings in this segment include a range of wiring devices, switches, and lighting solutions, which have become essential for modern residential construction. - Commercial Office and Infrastructure:
The commercial office segment experienced a revival in FY 2022-23 with the reopening of offices and government-backed infrastructure projects. HEDSIL has provided key products for commercial real estate, including lighting management systems, circuit protection devices, and cable management solutions. The government’s push for infrastructure development, particularly ahead of the elections, also supported HEDSIL’s market position. - Product Launches and Innovation:
HEDSIL is committed to innovation and continuously upgrades its product range. Recent launches, such as the Impact WD and Impact CP DB in 2022, and Blenze Pro in early 2023, have revitalized the company’s product portfolio. These products have strengthened both affordable and premium segments, increasing market adoption. - Export Initiatives:
HEDSIL has expanded its market presence beyond India, with its first shipment of dimmers sent to the United Kingdom in 2023. This marks the beginning of the company’s efforts to scale its export operations, tapping into international demand for quality electrical products.
3. Financial Highlights
HEDSIL’s financial performance in FY 2022-23 reveals several key insights:
- Revenue Growth:
Revenue increased from ₹12,140 crores in FY 2022 to ₹15,767 crores in FY 2024. This signifies strong market demand and growth, especially in the residential and commercial segments. - Gross Margins:
Gross margins, however, decreased to 46.63% in FY 2024, down from 78.27% in FY 2023. This drop in margins could be attributed to increased material costs and higher operational expenses. - EBITDA and EBIT:
HEDSIL’s EBITDA stood at ₹1903 crores in FY 2024, a slight dip compared to ₹2281 crores in the previous year, reflecting the impact of higher expenses. The company’s EBIT of ₹1397 crores shows a reduction in operating profit, yet it remains strong. - Profit After Tax (PAT):
PAT decreased to ₹1,144 crores in FY 2024 from ₹1,596 crores in FY 2023, but the company still maintains a strong net profit margin of 7.26%. The company’s ability to maintain positive profitability is a testament to its efficient management of core operations. - Earnings Per Share (EPS):
EPS dropped from ₹168 in FY 2023 to ₹120.42 in FY 2024, reflecting the impact of increased costs. However, the company still manages to maintain profitability at a per-share level, indicating a solid financial base.
Disclaimer*This research has been conducted on available data. Investors are advised to perform their own research and due diligence before making any investment decisions. We are not responsible for any financial losses or inaccuracies in the data provided
Pros
- Product Innovation and Diversification: High NPI vitality rate and continuous product innovation, positioning HEDSIL as a market leader.
- Strong Market Performance and Resilience: Maintained market share growth despite tough market conditions, showing strategic effectiveness.
- Market Expansion and Export Growth: Expanding into healthcare and international markets, highlighting growth potential.
Cons
- Economic Sensitivity: Vulnerability to economic cycles and reduced consumer spending, impacting demand for premium products.
- Operational Expenses: Increasing costs, particularly employee benefits and expenses, putting pressure on profitability.
- Competition: Intense competition from both local and global players, particularly in mid- to low-range product segments.
