Honda India Power Products Limited (HONDAPOWER) AI Stock Analysis

• Market Cap: ₹29.07B
• Dividend Yield: 0.62%
• Average Volume (3M): 1.13K
• Price to Earnings (P/E): 39.7
• Beta (1Y): 1.13
• Revenue Growth: -12.81%
• EPS Growth: -19.89%
• Country: IN
• Employees: 742
• Sector: Consumer Goods
• Sector Strength: N/A
• Industry: Industrial - Machinery
• EPS (TTM): 9.35
• Shares Outstanding: 10,140,000
• 10 Day Avg. Volume: 642
• 30 Day Avg. Volume: 1,127
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ₹2,981.00
• Price Target Upside: 3.98% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: ₹2,981.00 ▲(3.98% Upside)

The overall stock score of 64 reflects a strong financial foundation with low leverage and solid profitability margins. However, the stock faces challenges with declining revenue and cash flow issues that could impact future liquidity. Technical indicators suggest a bearish trend, and the valuation appears high relative to peers, limiting upside potential. The lack of earnings call and corporate events data means these factors did not influence the score.

Honda India Power Products Limited Business Overview & Revenue Model

Company Description

Honda India Power Products Limited (HONDAPOWER) is a subsidiary of Honda Motor Co., Ltd., headquartered in India. The company specializes in the manufacturing and distribution of portable generators, water pumps, general-purpose engines, lawn mowers, brush cutters, and tillers. These products cater to a diverse range of sectors including agriculture, construction, domestic use, and industrial applications. HONDAPOWER is recognized for its commitment to quality, innovation, and environmental sustainability in its product offerings.

How the Company Makes Money

Honda India Power Products Limited generates revenue primarily through the sale of its comprehensive range of power products. The company's key revenue streams include the domestic sales of generators, water pumps, and general-purpose engines, which are widely used in agriculture and construction sectors. Additionally, HONDAPOWER exports its products to various international markets, further boosting its revenue. The company benefits from Honda's strong brand reputation and extensive distribution network, which enhances its market reach and customer base. Strategic partnerships with dealers and service providers also play a crucial role in driving sales and after-sales services, contributing to its overall earnings.

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	Mar 2025	Mar 2023	Mar 2024	Mar 2022	Mar 2020
Income Statement
Total Revenue	7.94B	12.46B	9.89B	11.39B	8.49B
Gross Profit	3.50B	3.28B	3.83B	3.62B	1.92B
EBITDA	876.80M	1.37B	1.44B	1.19B	1.13B
Net Income	799.40M	850.90M	922.10M	745.30M	665.20M
Balance Sheet
Total Assets	10.47B	9.30B	9.92B	8.61B	7.15B
Cash, Cash Equivalents and Short-Term Investments	5.42B	4.67B	5.39B	2.77B	350.90M
Total Debt	1.00M	8.10M	4.70M	12.30M	11.90M
Total Liabilities	1.84B	1.93B	1.80B	1.92B	1.46B
Stockholders Equity	8.64B	7.37B	8.12B	6.70B	5.70B
Cash Flow
Free Cash Flow	-175.90M	1.28B	824.50M	202.30M	-398.40M
Operating Cash Flow	220.90M	1.57B	1.06B	369.00M	-176.20M
Investing Cash Flow	-698.00M	-1.50B	-986.70M	160.70M	472.40M
Financing Cash Flow	-284.50M	-162.00M	-175.40M	-112.90M	-131.10M

Honda India Power Products Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2867.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 2867 is below the 20-day moving average (MA) of 2879.63, below the 50-day MA of 2910.20, and above the 200-day MA of 2681.85, indicating a neutral trend. The MACD of -29.67 indicates Positive momentum. The RSI at 41.76 is Neutral, neither overbought nor oversold. The STOCH value of 29.57 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	₹1.04T	48.62		1.36%	20.71%	17.04%
KIRLOSENG	67 Neutral	₹130.08B	27.55		0.72%	8.02%	-0.95%
KIRLPNU	66 Neutral	₹85.20B	40.38		0.79%	21.46%	47.96%
HONDAPOWER	64 Neutral	₹29.07B	39.69		0.62%	-12.81%	-19.89%
Sector *	57 Neutral	$3.22B	9.46	-34.32%	2.94%	-25.56%	-353.61%
KIRLOSBROS	―	₹149.28B	35.83		0.37%	―	―
KSB	59 Neutral	₹137.68B	53.61		0.50%	10.55%	17.96%

Honda India Power Products Limited Corporate Events

Honda India Power Products Reports Strong Q1 2025 Financial Results

Honda India Power Products Limited reported its unaudited financial results for the quarter ending June 30, 2025, showing a total income of INR 16,483 lakhs and a profit before tax of INR 1,279 lakhs. The Board of Directors declared an interim dividend of INR 100 per share, reflecting the company’s strong financial performance and commitment to returning value to shareholders.