Johnson Contls-Hitachi Air Conditioning India is engaged in the business of
manufacturing, selling and trading of Hitachi brand of Air conditioners,
refrigerators, chillers and VRF (variable refrigerant flow) systems. It is one of
the market leaders in the RAC segment with 12% share and has been in
India for more than 30 years.On the financial health front, the company has a very strong balance sheet
with reduction in debt burden over the years from 0.6x debt-equity ratio in
FY14 to 0.2 in FY19. The company has also managed its capex investments
with an asset turnover of 6.2x. Tthe stock trades at 12.1x of book value and
delivers ROE of 15%. Hence BUY.
