Honda India Power Products Limited (HONDAPOWER) AI Stock Analysis

• Market Cap: ₹27.06B
• Dividend Yield: 1.2%
• Average Volume (3M): 667.00
• Price to Earnings (P/E): 36.9
• Beta (1Y): 1.16
• Revenue Growth: -12.81%
• EPS Growth: -19.89%
• Country: IN
• Employees: 742
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Industrial - Machinery
• EPS (TTM): 9.35
• 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

• Rating: 60 Neutral
• Price Target: ₹2,859.00 ▲(9.12% Upside)

The overall stock score of 60 reflects a solid financial foundation with strong balance sheet metrics. However, the stock is currently facing bearish technical indicators and is trading at a relatively high valuation, which limits its immediate upside potential. Addressing cash flow challenges and improving market sentiment could enhance the stock's attractiveness.

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

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: 2620.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 2620 is below the 20-day moving average (MA) of 2681.70, below the 50-day MA of 2778.85, and above the 200-day MA of 2501.28, indicating a neutral trend. The MACD of -35.04 indicates Negative momentum. The RSI at 35.04 is Neutral, neither overbought nor oversold. The STOCH value of 51.98 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	―	₹1.10T	51.47	―	1.17%	20.71%	17.04%
KSB	―	₹140.47B	54.70	―	0.51%	10.55%	17.96%
KIRLOSBROS	―	₹156.66B	37.60	―	0.37%	7.45%	19.19%
Sector *	―	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
KIRLOSENG	―	₹147.69B	31.32	―	0.65%	8.02%	-0.95%
KIRLPNU	―	₹72.59B	38.84	―	0.90%	6.51%	-1.61%
HONDAPOWER	―	₹27.06B	36.93	―	1.20%	-12.81%	-19.89%

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.