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 0.30% and Operating profit at 12.49% over the last 5 years
3
Positive results in Sep 25
- PBT LESS OI(Q) At Rs 5.59 cr has Grown at 251.57%
- PAT(Q) At Rs 11.17 cr has Grown at 30.8%
4
With ROE of 8.8, it has a Expensive valuation with a 2.8 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 -24.55%, its profits have risen by 15.4% ; the PEG ratio of the company is 2.1
- At the current price, the company has a high dividend yield of 5.4
5
Majority shareholders : Promoters
6
Below par performance in long term as well as near term
- Along with generating -24.55% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Honda India for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Honda India
-10.46%
-0.61
40.16%
Sensex
8.49%
0.43
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
0.30%
EBIT Growth (5y)
12.49%
EBIT to Interest (avg)
77.66
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
25.77%
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
29
Industry P/E
56
Price to Book Value
2.53
EV to EBIT
26.72
EV to EBITDA
19.61
EV to Capital Employed
5.12
EV to Sales
2.05
PEG Ratio
1.88
Dividend Yield
6.09%
ROCE (Latest)
20.49%
ROE (Latest)
8.79%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
Bullish
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
No Trend
Technical Movement
8What is working for the Company
PBT LESS OI(Q)
At Rs 5.59 cr has Grown at 251.57%
PAT(Q)
At Rs 11.17 cr has Grown at 30.8%
-1What is not working for the Company
NON-OPERATING INCOME(Q)
is 62.91 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Honda India
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 5.59 cr has Grown at 251.57%
Year on Year (YoY)MOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 11.17 cr has Grown at 30.8%
Year on Year (YoY)MOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Here's what is not working for Honda India
Non Operating Income - Quarterly
is 62.91 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT