Why is Honda India Power Products Ltd ?
1
Poor long term growth as Net Sales has grown by an annual rate of -3.05% and Operating profit at -16.26% over the last 5 years
2
With a fall in Net Sales of -22.48%, the company declared Very Negative results in Dec 24
- The company has declared negative results for the last 6 consecutive quarters
- NET SALES(Q) At Rs 204.18 cr has Fallen at -22.48 %
- PBT LESS OI(Q) At Rs 15.34 cr has Fallen at -45.18 %
- PAT(Q) At Rs 19.09 cr has Fallen at -32.6 %
3
Stock is technically in a Bearish range
- The technical trend has deteriorated from Mildly Bearish on 21-Jan-25 and has generated -24.72% returns since then
- Multiple factors for the stock are Bearish like MACD, Bollinger Band and KST
4
Underperformed the market in the last 1 year
- Even though the market (BSE 500) generated negative returns of -1.04% in the last 1 year, its fall in the stock was much higher with a return of -21.09%
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 Electric Equipment)
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
-21.5%
-0.46
45.58%
SENSEX
0.45%
0.03
14.48%
Quality key factors
Factor
Value
Sales Growth (5y)
-3.05%
EBIT Growth (5y)
-16.26%
EBIT to Interest (avg)
71.14
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
1.49
Tax Ratio
25.38%
Dividend Payout Ratio
19.24%
Pledged Shares
0
Institutional Holding
19.54%
ROCE (avg)
22.75%
ROE (avg)
10.19%
Valuation Key Factors 
Factor
Value
P/E Ratio
35
Industry P/E
60
Price to Book Value
2.39
EV to EBIT
43.15
EV to EBITDA
26.30
EV to Capital Employed
4.81
EV to Sales
1.90
PEG Ratio
NA
Dividend Yield
1.42%
ROCE (Latest)
15.37%
ROE (Latest)
6.91%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
No Trend
Technical Movement
0What is working for the Company
NO KEY POSITIVE TRIGGERS
-22What is not working for the Company
NET SALES(Q)
At Rs 204.18 cr has Fallen at -22.48 %
PBT LESS OI(Q)
At Rs 15.34 cr has Fallen at -45.18 %
PAT(Q)
At Rs 19.09 cr has Fallen at -32.6 %
ROCE(HY)
Lowest at 10.81 %
NON-OPERATING INCOME(Q)
is 40.40 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is not working for Honda India
Net Sales - Quarterly
At Rs 204.18 cr has Fallen at -22.48 %
Year on Year (YoY)MOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 15.34 cr has Fallen at -45.18 %
Year on Year (YoY)MOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 19.09 cr has Fallen at -32.6 %
Year on Year (YoY)MOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Non Operating Income - Quarterly
is 40.40 % 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