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Honda India Power Products Ltd. Stock Analysis

Small Cap
Evaluated by 659 users | BSE: 522064 | NSE: HONDAPOWER |
Electric Equipment
Honda Siel Power Products (HSPP), incorporated in 1985, is engaged in the business of manufacturing portable generators, water pumping sets and general purpose engines. Formerly known as Shriram Honda Power Equipment, the company is joint venture between Honda Motor Co, Japan and Siel wherein...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 13.87%15.35%7.66%9%11.68%13.98%14.91%13.96%11.34%11.61%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 406503516541631673702768816849
Y-o-Y Gr. Rt.-24.1%2.4%5%16.5%6.7%4.3%9.4%6.3%4%
Adjusted EPS (Rs.) 29.136.8820.2425.1635.2847.0657.3961.2855.0461.71
Y-o-Y Gr. Rt.-26.7%-45.1%24.3%40.2%33.4%22%6.8%-10.2%12.1%
Book Value per Share (Rs.) 220260.49276.12289.96320.48361.4416.68467.9509.96561.75
Adjusted Net Profit 29.537.420.525.535.847.758.262.255.862.6
Net Op. Cash Flow (Rs. Cr.) 10.648.2-30.415.942.910139.95520.6-17.6
Debt to Cash Flow from Ops 0000000000
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Honda India Power Products Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 8.6%6.1%6.5%4%
Adjusted EPS 8.7%11.8%2.5%12.1%
Book Value per Share 1111.910.510.2
Share Price 12.7% -7.1% -10.5% -27.5%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 13.8715.357.558.8911.5613.814.7513.8611.2611.52
Operating Profit Margin (%) 11.0110.197.49.6111.0212.9513.8413.5411.1410.97
Net Profit Margin (%) 7.287.433.984.715.677.098.298.096.847.38
Debt to Equity 0000000000
Working Capital Days 141144201223219214172138178230
Cash Conversion Cycle 28213447442927283457
Entity Percentage Holding
Promoters 66.67%
Institutions 12.43%
Non-Institutions 20.90%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Honda India Power Products Ltd.'s performance infers:

Honda India Power Products Ltd. earnings have grown by 11.8%, whereas share price has depreciated -7.1% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Honda India Power Products Ltd. share prices over the last 10 years. Here is what we found out:

Honda India Power Products Ltd. share price has depreciated 7.2% annually over the past ten years.

Honda Siel Power Products (HSPP), incorporated in 1985, is engaged in the business of manufacturing portable generators, water pumping sets and general purpose engines. Formerly known as Shriram Honda Power Equipment, the company is joint venture between Honda Motor Co, Japan and Siel wherein 67% equity stake is held by Honda Motor Co.

The company’s manufacturing facilities are located at Greater Noida, Rudrapur and Pondicherry. Today, the company has strong network of 800 dealers

Honda Siel Power Products (HSPP), incorporated in 1985, is engaged in the business of manufacturing portable generators, water pumping sets and general purpose engines. Formerly known as Shriram Honda Power Equipment, the company is joint venture between Honda Motor Co, Japan and Siel wherein 67% equity stake is held by Honda Motor Co.

The company’s manufacturing facilities are located at Greater Noida, Rudrapur and Pondicherry. Today, the company has strong network of 800 dealers and 15 area offices having pan-India presence.

HSPP is the market leader in portable generators segment. The company’s manufacturing facilities are accredited with ISO 9001:2000 and ISO 14001certifications for its Quality Management.

HSPP also operates an in-house R&D facility that focuses on developing new products and processes. This facility has been successful in developing India’s first LPG-based generator along with the Super Silent Key Start Generator and portable kerosene generators.

HSPP exports its products to 40 countries that include Bahrain, Bangladesh Bolivia Cambodia, Colombia, Egypt and Hong Kong, among others,. It has also received Export House status as 40% of its production is exported.

Honda Siel Power Products was conferred the Frost & Sullivan’s India Genset Industry Excellence Voice of Customer Award for Most Preferred Brand Commercial and Small Business Segment (less than 5 KVA) for 2007.

Products

Generators- The company is engaged in manufacturing a wide range of generators ranging from 350 VA to 5500 VA.

Engines- The company manufactures engines ranging from 1.8 HP to 5.5 HP. These engines have many applications such as High Tree Power Sprayer, Air Compressor, Rail Drilling Machine, Rail Cutting Machine, Pump sets, Reaper, Concrete Needle Vibrators, Power Trowel, Soil Compactor, Concrete Saw Cutting machine and many more.

The company also manufactures brush cutters, lawnmowers and water pumps. 

Honda Motor Company Japan (Parent Company)

Honda Motor Company is a $84.3 billion enterprise. Annually the company sells over 19.6 million products. The company operates 95 manufacturing units spread across in 34 countries.  Under Portable Power Product segment, the company has a customer base of over 46 million worldwide.

Recent Development

Honda Siel Power Products has created new department to development engine based on OEM (Original Equipment Manufacturer) appliances.

Future Plans

HSPP plans to develop safe technology for use of LPG for full range of engines that are required for gensets, water pumps, sprayers, etc.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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