Honda India Power Products Limited (HONDAPOWER) AI Stock Analysis

• Market Cap: ₹20.21B
• Dividend Yield: 1.38%
• Average Volume (3M): 667.00
• Price to Earnings (P/E): 35.7
• Beta (1Y): 1.36
• Revenue Growth: -1.54%
• EPS Growth: 10.30%
• Country: IN
• Employees: 742
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Industrial - Machinery
• EPS (TTM): 16.43
• Shares Outstanding: 10,140,000
• 10 Day Avg. Volume: 428
• 30 Day Avg. Volume: 667
• PEG Ratio: -1.92
• Price to Book (P/B): 2.37
• Price to Sales (P/S): 2.57
• P/FCF Ratio: -116.16
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ₹2,103.00 ▼(-8.88% Downside)
• Action: Reiterated Date: 11/22/25
• Date: Action: Reiterated 11/22/25

The overall stock score of 61 reflects a strong financial performance, particularly in terms of balance sheet stability and profitability margins. However, technical indicators suggest bearish momentum, and the valuation indicates the stock may be overvalued. The lack of earnings call data and corporate events limits additional insights.

Positive Factors

Very low leverage / strong capital structure

A near-zero debt-to-equity ratio and high equity ratio provide durable financial flexibility, reducing insolvency risk and enabling capital allocation for product development or dealer support without heavy interest burden. This foundation supports long-term resilience through cycles.

Healthy margins and operational efficiency

Sustained gross and operating margins indicate strong cost control and pricing power across product lines. High operating profitability supports reinvestment and cushion against demand swings, enabling consistent funding for R&D, service networks, and margin-accretive initiatives.

Diversified product mix and after-sales revenue

A broad portfolio across power products plus spare-parts and service streams creates multiple revenue channels and recurring after-sales income. Diversification across residential, agricultural and industrial uses lowers dependence on one market and supports steady long-term cash flows.

Negative Factors

Sharp free cash flow decline

A large drop in free cash flow and negative FCF-to-income ratio signal weakening cash conversion that can constrain capex, dealer financing, and inventory funding. Persistently weak cash generation undermines the company’s ability to invest organically or return capital over the medium term.

Revenue contraction trend

A material year-on-year revenue decline suggests demand softening or lost market share. Unless reversed, lower top-line impairs fixed-cost absorption, pressures margins, and limits scale benefits, making sustained profit growth and reinvestment harder over the next several quarters.

Brand-dependence without formal licensing clarity

Heavy reliance on the Honda brand and technology for differentiation without disclosed formal licensing or royalty terms creates strategic dependency. Changes to brand access, support, or licensing could materially affect distribution, product sourcing, and cost structure long-term.

Honda India Power Products Limited Business Overview & Revenue Model

Company Description

Honda India Power Products Limited manufactures and markets portable generators, water pumps, general purpose engines, lawn mowers, brush cutters, tillers, and backpack sprayers in India. It also exports its products to the United States, Europe, and internationally. The company was formerly known as Honda Siel Power Products Limited and changed its name to Honda India Power Products Limited in July 2020. The company was incorporated in 1985 and is headquartered in Gautam Buddha Nagar, India. Honda India Power Products Limited is a subsidiary of Honda Motor Co., Ltd.

How the Company Makes Money

The company primarily makes money by selling Honda-branded power products in India through a network of dealers and distributors. Its key revenue streams include: (1) sales of finished equipment such as portable generators, water pumps, and agricultural/gardening machinery (tillers, brush cutters, lawn mowers), where revenue is recognized from product sales to channel partners and/or end customers; (2) sales of general-purpose engines supplied for use in equipment either sold by the company or used by third-party OEM/application partners; and (3) after-sales revenue from spare parts, consumables, and service/maintenance support delivered via authorized service channels. A significant factor underpinning earnings is the company’s association with the Honda brand and access to Honda-developed technology and components; however, specific royalty, licensing, or formal partnership terms are null.

Honda India Power Products Limited Financial Statement Overview

Summary

Honda India Power Products Limited exhibits a strong balance sheet with low financial leverage and high equity ratios, indicating financial stability and low risk. Income statement metrics reflect healthy profitability margins despite a recent decline in revenue. Cash flow challenges persist with negative free cash flow growth, which may impact future liquidity. Overall, the company maintains a solid financial position but should address cash flow management to sustain long-term growth.

Income Statement

The company demonstrates a stable gross profit margin with a recent TTM (Trailing-Twelve-Months) figure of approximately 44.1%, indicating efficient cost management. However, there is a declining trend in revenue growth, with a drop of about 19.7% from the previous year, which could be a concern. Net profit margin remains moderate at about 10.1%, reflecting steady profitability. The EBIT and EBITDA margins are relatively strong, standing at approximately 27.3% and 11.0% respectively, pointing to effective operational management.

Balance Sheet

The company's balance sheet is robust with a very low debt-to-equity ratio of nearly 0.0001, showcasing minimal leverage and financial risk. Return on Equity (ROE) is sound at 9.3%, demonstrating efficient utilization of equity capital. The equity ratio is high at roughly 82.4%, indicating strong capital structure and financial stability. Overall, the balance sheet reflects a solid foundation with low risk exposure.

Cash Flow

The cash flow analysis reveals a concerning decline in free cash flow, with a negative growth rate of approximately -121.3% year-over-year, suggesting potential liquidity issues. The operating cash flow to net income ratio is low at about 0.28, indicating that a smaller portion of net income is being converted into cash. Additionally, the free cash flow to net income ratio is negative, which could impede future investments or debt repayment strategies. However, the company has a history of adequate operating cash flows, supporting its short-term operational needs.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	8.03B	7.94B	9.89B	12.28B	11.39B	9.24B
Gross Profit	3.10B	3.50B	3.83B	4.28B	3.62B	2.79B
EBITDA	1.14B	1.30B	1.44B	1.37B	1.19B	870.70M
Net Income	759.00M	799.40M	922.10M	850.90M	745.30M	486.70M
Balance Sheet
Total Assets	9.52B	10.47B	9.92B	9.30B	8.61B	7.91B
Cash, Cash Equivalents and Short-Term Investments	4.46B	5.42B	5.39B	4.67B	2.77B	1.36B
Total Debt	600.00K	1.00M	4.70M	8.10M	12.30M	14.40M
Total Liabilities	1.91B	1.84B	1.80B	1.93B	1.92B	1.85B
Stockholders Equity	7.61B	8.64B	8.12B	7.37B	6.70B	6.06B
Cash Flow
Free Cash Flow	-539.80M	-175.90M	836.90M	1.28B	202.30M	1.37B
Operating Cash Flow	-318.00M	220.90M	1.06B	1.57B	369.00M	1.52B
Investing Cash Flow	1.37B	-698.00M	-986.70M	-1.50B	160.70M	-924.90M
Financing Cash Flow	-1.03B	-284.50M	-175.40M	-162.00M	-112.90M	-135.90M

Honda India Power Products Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2308.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HONDAPOWER, the sentiment is Negative. The current price of 2308.05 is above the 20-day moving average (MA) of 2153.28, above the 50-day MA of 2175.55, and below the 200-day MA of 2563.13, indicating a bearish trend. The MACD of -42.22 indicates Positive momentum. The RSI at 38.71 is Neutral, neither overbought nor oversold. The STOCH value of 24.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:HONDAPOWER.

Honda India Power Products Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CUMMINSIND	72 Outperform	₹1.29T	63.22	―	1.14%	20.23%	18.69%
KIRLOSENG	66 Neutral	₹211.10B	39.78	―	0.50%	11.85%	-3.66%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
KSB	62 Neutral	₹130.84B	48.57	―	0.51%	9.50%	14.52%
HONDAPOWER	61 Neutral	₹20.21B	35.75	―	1.38%	-1.54%	10.30%
KIRLPNU	60 Neutral	₹70.09B	40.77	―	0.97%	6.51%	-1.61%
KIRLOSBROS	59 Neutral	₹120.85B	25.72	―	0.43%	4.16%	-0.73%