Check Before You Invest : Honda India Power Products Ltd

Q: Which industry/sub-sector does Honda India Power Products Ltd belong to?

Honda India Power Products Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electric Equipment segment.

Q: Is Honda India Power Products Ltd a good quality company?

Honda India Power Products Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Honda India Power Products Ltd undervalued or overvalued?

Honda India Power Products Ltd appears Overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 31.87, Historic Median: 28.02. Price to Book, Current: 3.01, Historic Median: 3.00. Price to Sales, Current: 2.69, Historic Median: 2.12. EV to EBITDA, Current: 14.13, Historic Median: 13.37

Q: Is Honda India Power Products Ltd a good buy now?

Honda India Power Products Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Honda India Power Products Ltd?

Honda India Power Products Ltd revenue growth is -19.7% for FY-2025, which is below its 5-year CAGR of -1.32%, indicating slower growth.

Q: Gross Profit margin of Honda India Power Products Ltd?

Honda India Power Products Ltd Gross profit margin which is the profit after deduction of direct costs, is 16.3% for FY-2025, which is above its 5-year median of 12.3%, indicating increasing margins.

Q: Operating Profit Margin of Honda India Power Products Ltd?

Honda India Power Products Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.05% for FY-2025, which is above its 5-year median of 10% indicating increasing margins.

Q: Net Profit Margin of Honda India Power Products Ltd?

Honda India Power Products Ltd Net Profit Margin is 10.07% for FY-2025, is above its 5-year median of 6.83%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 16.3, Historic Median: 12.3. Operating Profit Margin (%), Current: 11.05, Historic Median: 10. Net Profit Margin (%), Current: 10.07, Historic Median: 6.83

Q: Return on Asset of Honda India Power Products Ltd?

Honda India Power Products Ltd Return on Asset is 5.62%, which is below its 5-year historical median of 7.9%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Honda India Power Products Ltd?

Honda India Power Products Ltd Return on capital employed is 12.92% for FY-2025, which is below its 5-year historical median of 15.84%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : Honda India Power Products Ltd

Snapshot

Q.1 Which industry/sub-sector does Honda India Power Products Ltd belong to?

Honda India Power Products Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electric Equipment segment.

Q.2 Is Honda India Power Products Ltd a good quality company?

Honda India Power Products Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Honda India Power Products Ltd undervalued or overvalued?

Honda India Power Products Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	31.87	28.02
Price to Book	3.01	3.00
Price to Sales	2.69	2.12
EV to EBITDA	14.13	13.37

Q.4 Is Honda India Power Products Ltd a good buy now?

Honda India Power Products Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Honda India Power Products Ltd?

Honda India Power Products Ltd revenue growth is -19.7% for FY-2025, which is below its 5-year CAGR of -1.32%, indicating slower growth.

Q.2 Gross Profit margin of Honda India Power Products Ltd?

Honda India Power Products Ltd Gross profit margin which is the profit after deduction of direct costs, is 16.3% for FY-2025, which is above its 5-year median of 12.3%, indicating increasing margins.

Q.3 Operating Profit Margin of Honda India Power Products Ltd?

Honda India Power Products Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.05% for FY-2025, which is above its 5-year median of 10% indicating increasing margins.

Q.4 Net Profit Margin of Honda India Power Products Ltd?

Honda India Power Products Ltd Net Profit Margin is 10.07% for FY-2025, is above its 5-year median of 6.83%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	16.3	12.3
Operating Profit Margin (%)	11.05	10
Net Profit Margin (%)	10.07	6.83

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Honda India Power Products Ltd?

Honda India Power Products Ltd Return on Asset is 5.62%, which is below its 5-year historical median of 7.9%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Honda India Power Products Ltd?

Honda India Power Products Ltd Return on capital employed is 12.92% for FY-2025, which is below its 5-year historical median of 15.84%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Honda India Power Products Ltd?

Honda India Power Products Ltd Return on equity is 9.54% for FY-2025, which is below its 5-year historical median of 11.69%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Honda India Power Products Ltd?

Honda India Power Products Ltd Cash conversion cycle is 49 days, above its 5-year historical median of 40 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.56	1.26
ROE (%)	9.54	11.69
ROCE (%)	12.92	15.84
Cash Conversion Cycle	49 days	40 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Honda India Power Products Ltd?

Honda India Power Products Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.29, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Honda India Power Products Ltd?

Honda India Power Products Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Honda India Power Products Ltd?

Q.1 Promoter shareholding and pledge status of Honda India Power Products Ltd?

Promoters hold 66.67% of the Honda India Power Products Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Honda India Power Products Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Honda India Power Products Ltd vs industry peers?

Honda India Power Products Ltd revenue CAGR is -1.32%, compared to the industry median CAGR of 13.19%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-19.7	13.2
Gross Profit Growth (%)	-7.1	27.9
Operating Profit Growth (%)	-11.1	28.4
Net Profit Growth (%)	-13	28.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.56	1.05
ROE (%)	9.54	9.8
ROCE (%)	12.92	13.56
Cash Conversion Cycle (days)	48.76	99

Valuation & price assessment

Q.1 Stock return of Honda India Power Products Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 6.2% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	6.2%	18.6%	-2.5%	12.6%

Q.2 Valuation ratios of Honda India Power Products Ltd vs historical?

The current P/E ratio of 31.87 is higher than its historical median of 28.02, indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	31.87	28.02	38.08
Price to Book	3.01	3.00	3.97
Price to Sales	2.69	2.12	2.75
EV to EBITDA	14.13	13.37	18.75

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Check Before You Invest : Honda India Power Products Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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