Johnson Controls – Hitachi AC Stock Hits 20% Upper Circuit After Stellar Q4 Results: What You Need to Know

On May 24, shares of Johnson Controls – Hitachi Air Conditioning India hit a 20 percent upper circuit, reaching a new 52-week high of Rs 1,486 per share. This surge came after the company posted strong results for the January-March quarter (Q4FY24).

So far this year, Johnson Controls shares have risen by over 33 percent, significantly outperforming the Nifty 50 index, which has only risen by 5 percent.

Currently, Johnson Controls shares have a price-to-book (PB) ratio of 5.11x, which is lower than its competitors. For comparison, Voltas has a PB ratio of 7.33x, Bluestar is at 12x, and Amber Enterprises is at 6x.

In Q4FY24, Johnson Controls’ revenue from operations jumped 50 percent year-on-year (YoY) to Rs 771 crore, up from Rs 547 crore the previous year. The company also turned a profit of Rs 48 crore, a significant improvement from the Rs 1 crore loss in Q4FY23.

Looking at specific segments, revenue from cooling products for comfort and commercial use increased by 41 percent YoY to Rs 760 crore. However, revenue from design and development services saw a slight decline, dropping by 1 percent to Rs 178 crore.

On the expense side, Johnson Controls’ total costs rose by 30 percent YoY, reaching Rs 707 crore in Q4FY24, compared to Rs 545 crore the previous year.

Johnson Controls, commonly known as Hitachi, manufactures a variety of electronic home solutions. Their products include window ACs, split ACs, tower and packaged air conditioners, 2- and 3-door refrigerators, and fully automatic washing machines.

In the January-March period, foreign institutional investors slightly increased their stake in the company to 0.5 percent from 0.4 percent in the previous quarter. On the other hand, mutual funds reduced their stake to 8.1 percent from 8.5 percent, and overall institutional investor holdings fell to 8.9 percent from 9.3 percent.