Large Cap Debt Free Stock Sets Record Date For Rs. 95/Share Dividend

A large-cap firm, Honeywell Automation India's market valuation on Monday's closing session was Rs 38,071.60 Cr. The company offers solutions for industrial and building automation. The company has recommended a dividend of Rs 95 per share for FY23 and for the purpose of the same record date has been fixed.

The Board of Directors have approved the "Recommendation of dividend @ Rs. 95 /- (Rupees Ninety-Five only) per Equity share of face value Rs. 10/- each for the financial year ended on March 31, 2023 to be approved by the shareholders at the Annual General Meeting of the Company to be held on August 11, 2023. The said dividend, if declared at the ensuing Annual General Meeting of the Company shall be paid on August 25, 2023," said Honeywell Automation India in a stock exchange filing.

While announcing the record date, the company informed stock exchanges on Monday that "Pursuant to Regulation 42 of the SEBI Listing Regulations, the Register of Members and Share Transfer Books of the Company will be closed from Friday, August 4, 2023 to Thursday, August 10, 2023 (both days inclusive) and the Company has fixed Thursday, August 3, 2023 as the "Record Date" for the purpose of determining the entitlement of Members to receive final dividend for the financial year ended March 31, 2023. The payment of such dividend, if approved by the Members at the AGM, shall be distributed amongst the Shareholders, on Friday, August 25, 2023 and will be made subject to deduction of tax at source."

Honeywell Automation has announced an equity dividend of 950.00% at a face value of Rs 10, or Rs 95 per share, for the financial year ended March 2023. This generates a dividend yield of 0.22% at the current market price of Rs 43060. The company has a solid track record of dividend declarations during the past five years. According to Trendlyne's statistics, Honeywell Automation India Ltd. has issued 22 dividends since July 4, 2001.

The company posted a consolidated net profit of Rs 112.03 crore for the fourth quarter of financial year 2023 compared to a net profit of Rs 72.67 crore in the same quarter of FY22, representing a jump of 54% year-on-year (YoY). Its consolidated revenue was Rs 849.68 crore in Q4 FY23, up 27% from Rs 668 crore in the same quarter of FY22. In Q4FY23, operating margin climbed to 16.34% from Q4FY22's 13.07%. From 13.1 percent in the same quarter of last year, the EBITDA margin climbed to 16.3 percent in Q4FY23. Honeywell Automation is yet to declare its Q1FY24 results.

On Monday, the shares of Honeywell Automation India closed on the BSE at Rs 43060 apiece down by 0.28% from the previous close of Rs 43178.75. The stock made a 52-week-high of Rs 44,322.70 on (16/08/2022) and a 52-week-low of Rs 34,383.00 on (14/03/2023). During Q4FY23, the company recorded a promoter shareholding of 75.00%, FIIs stake of 2.86%, DIIs stake of 12.40% and public stake of 9.73%. As per the data of Trendlyne and Screener, Honeywell Automation India is a debt-free company having a debt-to-equity ratio of zero on its balance sheet.