Why is Honda India Power Products Ltd ?
1
Company has a low Debt to Equity ratio (avg) at 0 times
2
Poor long term growth as Net Sales has grown by an annual rate of 0.72% and Operating profit at 13.57% over the last 5 years
3
Positive results in Dec 25
- PBT LESS OI(Q) At Rs 26.19 cr has Grown at 70.73%
- NET SALES(Q) Highest at Rs 270.40 cr
- PAT(Q) At Rs 25.35 cr has Grown at 32.8%
4
With ROE of 9.5, it has a Very Attractive valuation with a 2.4 Price to Book Value
- The stock is trading at a fair value compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -3.59%, its profits have risen by 45.3% ; the PEG ratio of the company is 0.6
- At the current price, the company has a high dividend yield of 6.2
5
Majority shareholders : Promoters
6
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -3.59% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
How much should you hold?
- Overall Portfolio exposure to Honda India should be less than 10%
- Overall Portfolio exposure to Industrial Manufacturing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Honda India for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Honda India
-2.87%
-0.08
36.46%
Sensex
-2.38%
-0.19
12.70%
Quality key factors
Factor
Value
Sales Growth (5y)
0.72%
EBIT Growth (5y)
13.57%
EBIT to Interest (avg)
77.97
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.63
Sales to Capital Employed (avg)
1.42
Tax Ratio
25.96%
Dividend Payout Ratio
19.24%
Pledged Shares
0
Institutional Holding
19.32%
ROCE (avg)
23.24%
ROE (avg)
10.49%
Valuation Key Factors 
Factor
Value
P/E Ratio
25
Industry P/E
61
Price to Book Value
2.36
EV to EBIT
20.61
EV to EBITDA
15.70
EV to Capital Employed
4.65
EV to Sales
1.72
PEG Ratio
0.55
Dividend Yield
6.23%
ROCE (Latest)
20.49%
ROE (Latest)
9.51%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
No Trend
Technical Movement
7What is working for the Company
PBT LESS OI(Q)
At Rs 26.19 cr has Grown at 70.73%
NET SALES(Q)
Highest at Rs 270.40 cr
PAT(Q)
At Rs 25.35 cr has Grown at 32.8%
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for Honda India
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 26.19 cr has Grown at 70.73%
Year on Year (YoY)MOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Net Sales - Quarterly
Highest at Rs 270.40 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 270.40 cr has Grown at 32.43%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 25.35 cr has Grown at 32.8%
Year on Year (YoY)MOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)






