Honda India Power Products Limited (HONDAPOWER) AI Stock Analysis

• Market Cap: ₹26.26B
• Dividend Yield: 1.28%
• Average Volume (3M): 667.00
• Price to Earnings (P/E): 35.8
• Beta (1Y): 1.18
• Revenue Growth: -1.54%
• EPS Growth: 10.30%
• Country: IN
• Employees: 742
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Industrial - Machinery
• EPS (TTM): 11.01
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ₹2,585.00 ▲(5.35% Upside)

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

Balance Sheet Strength

A strong balance sheet with minimal leverage indicates financial stability and low risk, providing a solid foundation for future growth.

Profitability Margins

Stable profitability margins reflect efficient cost management and operational effectiveness, supporting long-term financial health.

Brand and Market Reach

Leveraging Honda's brand and distribution network enhances market reach and customer base, driving sustainable revenue growth.

Negative Factors

Revenue Decline

A significant decline in revenue growth can impact future profitability and market competitiveness, posing a long-term challenge.

Cash Flow Challenges

Negative free cash flow growth suggests potential liquidity issues, which could hinder future investments and operational flexibility.

Revenue Growth Trends

Continued revenue decline could affect the company's ability to maintain its market position and invest in growth opportunities.

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., specializing in the manufacturing and distribution of power products in India. The company focuses on sectors such as generators, water pumps, and tillers, catering to both agricultural and industrial markets. HONDAPOWER is committed to delivering high-quality, reliable, and efficient power solutions that meet the diverse needs of its customers, enhancing productivity in various applications.

How the Company Makes Money

HONDAPOWER generates revenue primarily through the sale of its core products, including portable generators, water pumps, and tillers. The company employs a direct sales model through a network of authorized dealers and distributors across India, ensuring wide market reach. Additionally, HONDAPOWER benefits from its brand reputation and the backing of Honda's global expertise, which allows it to command premium pricing for its products. Key revenue streams include both domestic sales and exports, with a focus on meeting the requirements of agricultural, construction, and industrial sectors. Partnerships with local dealers and continuous investments in product innovation also contribute significantly to its 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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.05B	7.94B	9.89B	12.28B	11.39B	9.24B
Gross Profit	3.50B	3.50B	3.83B	4.28B	3.62B	2.79B
EBITDA	1.10B	1.30B	1.44B	1.37B	1.19B	870.70M
Net Income	732.70M	799.40M	922.10M	850.90M	745.30M	486.70M
Balance Sheet
Total Assets	0.00	10.47B	9.92B	9.30B	8.61B	7.91B
Cash, Cash Equivalents and Short-Term Investments	5.42B	5.42B	5.39B	4.67B	2.77B	1.36B
Total Debt	0.00	1.00M	4.70M	8.10M	12.30M	14.40M
Total Liabilities	-8.64B	1.84B	1.80B	1.93B	1.92B	1.85B
Stockholders Equity	8.64B	8.64B	8.12B	7.37B	6.70B	6.06B
Cash Flow
Free Cash Flow	0.00	-175.90M	836.90M	1.28B	202.30M	1.37B
Operating Cash Flow	0.00	220.90M	1.06B	1.57B	369.00M	1.52B
Investing Cash Flow	0.00	-698.00M	-986.70M	-1.50B	160.70M	-924.90M
Financing Cash Flow	0.00	-284.50M	-175.40M	-162.00M	-112.90M	-135.90M

Honda India Power Products Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2453.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 2453.75 is below the 20-day moving average (MA) of 2477.08, below the 50-day MA of 2608.15, and below the 200-day MA of 2511.04, indicating a bearish trend. The MACD of -58.52 indicates Negative momentum. The RSI at 40.78 is Neutral, neither overbought nor oversold. The STOCH value of 33.11 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	₹1.20T	55.89	―	1.15%	20.23%	18.69%
KIRLOSENG	68 Neutral	₹169.53B	31.10	―	0.56%	11.85%	-3.66%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
HONDAPOWER	61 Neutral	₹26.26B	35.85	―	1.28%	-1.54%	10.30%
KIRLPNU	60 Neutral	₹68.84B	36.53	―	0.95%	6.51%	-1.61%
KIRLOSBROS	59 Neutral	₹147.78B	37.70	―	0.43%	4.16%	-0.73%
KSB	59 Neutral	₹134.54B	52.39	―	0.53%	9.50%	14.52%

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.