Honda India Power Products Limited (HONDAPOWER) AI Stock Analysis

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Honda India Power Products Limited

(NSE:HONDAPOWER)

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Rating:63.2Neutral

Price Target:INR 1,867.00▲(6.62% Upside)

Action:downgraded

Date:08/28/26

The stock earns a mid‑range score primarily due to its very strong, low‑risk balance sheet and consistent profitability, offset by recent margin compression and weaker, more volatile cash generation. Secondary drivers are a soft technical picture, with the price below key moving averages and momentum indicators lacking a clear bullish signal, and a relatively rich valuation, as the high‑30s P/E and moderate dividend yield offer some income but limited upside buffer at current levels.

Positive Factors

Very Low LeverageThe exceptionally low debt burden gives Honda India Power Products substantial financial flexibility and resilience. Limited leverage reduces financing pressure, supports continued investment through weaker cycles, and leaves more capacity to fund operations or growth without depending heavily on external borrowing.

Negative Factors

Weak Cash ConversionOperating earnings are translating poorly into cash, which weakens the quality of reported profits and can constrain internally funded investment. Negative free cash flow also reduces flexibility for shareholder returns or expansion, even though earlier years showed the business can generate stronger cash.

Honda India Power Products Limited (HONDAPOWER) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 17.78B
Dividend Yield: 2.74%
Average Volume (3M): 263
Price to Earnings (P/E): 27.0
Beta (1Y): 1.24
Revenue Growth: 11.78%
EPS Growth: -10.11%
Country: India
Employees: 742
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

Honda India Power Products Limited Business Overview & Revenue Model

Company Description

Honda India Power Products (HIPP) specializes in the production and sale of various power equipment within India, including portable generators, water pumps, multi-purpose engines, lawn care machinery like mowers, brush cutters, and tillers, as well...

How the Company Makes Money

HONDAPOWER primarily makes money by selling Honda-branded power products and related equipment in India. Key revenue streams include: (1) Sale of equipment and machines: revenue from selling units such as portable generators, water pumps, tillers/gen...

Honda India Power Products Limited Financial Statement Overview

Summary

Financial performance is solid overall, underpinned by a very strong, low‑debt balance sheet and steady growth in equity, alongside consistently positive earnings. However, this strength is moderated by a sharp drop in gross margin from about 39–44% to roughly 23%, softer operating margins, and more volatile, recently negative free cash flow, which weaken the otherwise robust profile.

Income Statement

72Positive

Balance Sheet

88Very Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	8.65B	8.65B	7.94B	9.89B	12.28B	11.39B
Gross Profit	2.37B	1.97B	3.50B	3.83B	4.28B	3.62B
EBITDA	1.13B	1.09B	1.30B	1.44B	1.37B	1.19B
Net Income	642.40M	642.40M	799.40M	922.10M	850.90M	745.30M
Balance Sheet
Total Assets	10.32B	10.32B	10.47B	9.92B	9.30B	8.61B
Cash, Cash Equivalents and Short-Term Investments	794.30M	4.14B	5.42B	5.39B	4.67B	2.77B
Total Debt	9.90M	9.90M	1.00M	4.70M	8.10M	12.30M
Total Liabilities	2.28B	2.28B	1.84B	1.80B	1.93B	1.92B
Stockholders Equity	8.03B	8.03B	8.64B	8.12B	7.37B	6.70B
Cash Flow
Free Cash Flow	-539.80M	-221.00M	-175.90M	836.90M	1.28B	202.30M
Operating Cash Flow	-318.00M	287.30M	220.90M	1.06B	1.57B	369.00M
Investing Cash Flow	1.37B	1.33B	-698.00M	-986.70M	-1.50B	160.70M
Financing Cash Flow	-1.03B	-1.26B	-284.50M	-175.40M	-162.00M	-112.90M

Honda India Power Products Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price1751.00

Price Trends

50DMA1916.62Negative

100DMA2018.36Negative

200DMA2082.03Negative

Market Momentum

MACD-43.02Positive

RSI31.46Neutral

STOCH36.35Neutral

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 1751.00 is below the 20-day moving average (MA) of 1824.08, below the 50-day MA of 1916.62, and below the 200-day MA of 2082.03, indicating a bearish trend. The MACD of -43.02 indicates Positive momentum. The RSI at 31.46 is Neutral, neither overbought nor oversold. The STOCH value of 36.35 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

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:HONDAPOWER against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:HONDAPOWER	63Neutral	INR 17.76B	27.00	―	2.74%	11.78%	-10.11%
IN:KIRLOSBROS	60Neutral	INR 127.28B	33.82	―	0.44%	10.85%	-4.06%
IN:GREAVESCOT	57Neutral	INR 46.45B	46.37	―	1.00%	21.20%	22.83%
IN:KIRLOSENG	56Neutral	INR 261.95B	47.81	―	0.50%	22.66%	15.61%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:SHAKTIPUMP	49Neutral	INR 43.61B	27.25	―	0.28%	15.77%	-60.93%
IN:KSB	44Neutral	INR 113.26B	1.31	―	0.67%	4.63%	-4.40%

* General Sector Average

Performance Comparison

IN:HONDAPOWER and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:HONDAPOWER	Honda India Power Products Limited	1751.00	-838.64	-32.38%
IN:GREAVESCOT	Greaves Cotton Limited	199.40	-18.71	-8.58%
IN:KIRLOSBROS	Kirloskar Brothers Ltd.	1602.85	-280.48	-14.89%
IN:KIRLOSENG	Kirloskar Oil Engines Limited	1799.50	783.34	77.09%
IN:KSB	KSB Ltd.	650.75	-130.49	-16.70%
IN:SHAKTIPUMP	Shakti Pumps (India) Limited	353.40	-457.14	-56.40%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 28, 2026

Honda India Power Products Limited AI Stock Analysis

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