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Last Updated on: 22 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo
Stock Ticker - BSE: 522064 | NSE: HONDAPOWER

Honda India Power Products Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 21, 2024, 2:26 am

Market Cap 2,957 Cr.
Current Price 2,916
High / Low 4,500/2,145
Stock P/E44.9
Book Value 807
Dividend Yield0.60 %
ROCE15.5 %
ROE11.5 %
Face Value 10.0
PEG Ratio6.65

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for

Competitors of

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Envair Electrodyne Ltd 64.8 Cr. 140 274/124 17.40.00 %12.4 %9.98 % 10.0
Solex Energy Ltd 1,569 Cr. 1,453 1,787/33274.4 1220.04 %17.9 %20.8 % 10.0
Honda India Power Products Ltd 2,957 Cr. 2,916 4,500/2,14544.9 8070.60 %15.5 %11.5 % 10.0
Industry Average2,263.00 Cr1,503.0059.65315.470.21%15.27%14.09%10.00

All Competitor Stocks of

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales296264231338324200394339313210285263231
Expenses275242211304301194338294285190249230221
Operating Profit2122203323656452820353310
OPM %7%8%9%10%7%3%14%13%9%10%12%13%5%
Other Income49633663-138121016
Interest0000000000000
Depreciation5555555565555
Profit before tax202621312175743923423821
Tax %24%25%25%25%27%25%25%26%36%26%26%25%24%
Net Profit152016231654232617312816
EPS in Rs15.0719.5315.6822.9115.364.8441.8231.505.7316.6630.7527.9215.58

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales5165416316737027688168499391,1561,246989
Expenses4774905605846066657257568661,0541,111890
Operating Profit385270889610391937310313599
OPM %7%10%11%13%14%13%11%11%8%9%11%10%
Other Income7-51111161514201517245
Interest001111111110
Depreciation141821242323212220192120
Profit before tax312959758894839066100115124
Tax %34%35%34%35%34%35%35%26%26%26%26%25%
Net Profit211939495861546749758592
EPS in Rs20.3118.5238.0848.1456.9660.5453.3965.5847.9873.4883.8990.91
Dividend Payout %20%22%16%12%13%15%19%19%21%20%20%19%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-9.52%105.26%25.64%18.37%5.17%-11.48%24.07%-26.87%53.06%13.33%8.24%
Change in YoY Net Profit Growth (%)0.00%114.79%-79.62%-7.27%-13.19%-16.65%35.55%-50.94%79.93%-39.73%-5.10%

has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:6%
5 Years:4%
3 Years:2%
TTM:-29%
Compounded Profit Growth
10 Years:14%
5 Years:10%
3 Years:23%
TTM:-32%
Stock Price CAGR
10 Years:13%
5 Years:19%
3 Years:31%
1 Year:23%
Return on Equity
10 Years:12%
5 Years:11%
3 Years:12%
Last Year:11%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 11:34 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital10101010101010101010101010
Reserves270284315356412464507559595660727802809
Borrowings0000000111100
Other Liabilities8597110113114124141148187194196184132
Total Liabilities365391435480536599658719794865934997951
Fixed Assets117114123112107101959891879198101
CWIP11000132213977
Investments0000000000000
Other Assets246275312367429497560619700765833892844
Total Assets365391435480536599658719794865934997951

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-301643101405521-1815237157106
Cash from Investing Activity +37-13-44-86-14-65-1347-9216-148-97
Cash from Financing Activity +-11-5-5-7-8-9-11-13-14-11-16-18
Net Cash Flow-4-1-5718-20-3174642-7-9

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow38.0052.0070.0088.0096.00103.0091.0092.0072.00102.00134.0099.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days202722181430282132282119
Inventory Days11712411885108758415698908389
Days Payable606267576361616469594661
Cash Conversion Cycle7689734659445111461585847
Working Capital Days606760344753133164110512720
ROCE %12%13%18%22%22%21%18%16%11%16%19%15%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters66.67%66.67%66.67%66.67%66.67%66.67%66.67%66.67%66.67%66.67%66.67%66.67%
FIIs0.38%0.42%0.46%0.56%0.59%1.53%1.72%1.73%1.79%1.59%1.45%1.42%
DIIs11.73%12.25%12.27%13.38%13.43%13.29%13.45%14.40%14.72%14.82%15.31%16.93%
Public21.22%20.66%20.60%19.39%19.32%18.51%18.17%17.20%16.81%16.92%16.56%15.00%
No. of Shareholders17,59216,22316,13916,12415,65817,98517,93717,38916,48520,17720,76218,210

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Nippon India Small Cap Fund894,7300.59334.28894,7302024-12-200%
Tata Small Cap Fund515,9782.45192.78894,7302024-12-20-42.33%
Quant Active Fund305,5811.06114.17894,7302024-12-20-65.85%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)90.9183.8973.4847.9965.58
Diluted EPS (Rs.)90.9183.8973.4847.9965.58
Cash EPS (Rs.)110.88104.4191.7767.9887.38
Book Value[Excl.RevalReserv]/Share (Rs.)800.90726.57660.63597.15561.75
Book Value[Incl.RevalReserv]/Share (Rs.)800.90726.57660.63597.15561.75
Dividend / Share (Rs.)17.5016.5015.0010.0012.50
Revenue From Operations / Share (Rs.)975.411229.081140.33925.98836.92
PBDIT / Share (Rs.)138.47152.13117.4285.48106.94
PBIT / Share (Rs.)118.53131.6499.1565.5085.17
PBT / Share (Rs.)122.02113.8198.6865.2389.18
Net Profit / Share (Rs.)90.9483.9273.5048.0065.60
PBDIT Margin (%)14.1912.3710.299.2312.77
PBIT Margin (%)12.1510.718.697.0710.17
PBT Margin (%)12.509.258.657.0410.65
Net Profit Margin (%)9.326.826.445.187.83
Return on Networth / Equity (%)11.3511.5411.128.0311.67
Return on Capital Employeed (%)14.7818.0614.9610.9315.11
Return On Assets (%)9.299.148.656.159.29
Asset Turnover Ratio (%)1.031.391.401.251.24
Current Ratio (X)4.303.923.293.273.86
Quick Ratio (X)3.513.042.362.392.40
Inventory Turnover Ratio (X)3.233.803.872.673.24
Dividend Payout Ratio (NP) (%)18.1517.8713.6026.0515.24
Dividend Payout Ratio (CP) (%)14.8814.3610.8918.3911.44
Earning Retention Ratio (%)81.8582.1386.4073.9584.76
Cash Earning Retention Ratio (%)85.1285.6489.1181.6188.56
Interest Coverage Ratio (X)319.11265.97248.04309.57361.47
Interest Coverage Ratio (Post Tax) (X)201.52177.88156.27174.82208.17
Enterprise Value (Cr.)1708.961572.51972.22835.55811.36
EV / Net Operating Revenue (X)1.731.260.840.880.95
EV / EBITDA (X)12.1710.198.179.647.48
MarketCap / Net Operating Revenue (X)2.271.641.081.030.99
Retention Ratios (%)81.8482.1286.3973.9484.75
Price / BV (X)2.772.771.871.601.49
Price / Net Operating Revenue (X)2.271.641.081.030.99
EarningsYield0.040.040.050.050.07

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of as of December 22, 2024 is: 4,191.95

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 22, 2024, is Undervalued by 43.76% compared to the current share price 2,916.00

Intrinsic Value of as of December 22, 2024 is: 4,474.91

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 22, 2024, is Undervalued by 53.46% compared to the current share price 2,916.00

Last 5 Year EPS CAGR: 6.75%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 16.92%, which is a positive sign.
  2. The company has higher reserves (520.00 cr) compared to borrowings (0.31 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (618.83 cr) and profit (79.50 cr) over the years.
  1. The stock has a high average Working Capital Days of 68.83, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 64.67, which may not be favorable.
  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in :
    1. Net Profit Margin: 9.32%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 14.78% (Industry Average ROCE: 15.27%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 11.35% (Industry Average ROE: 14.09%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 201.52
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 3.51
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 44.9 (Industry average Stock P/E: 39.77)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Honda India Power Products Ltd. is a Public Limited Listed company incorporated on 19/09/1985 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L40103DL2004PLC203950 and registration number is 203950. Currently Company is involved in the business activities of Electrical equipment, General Purpose and Special purpose Machinery & equipment, Transport equipment. Company’s Total Operating Revenue is Rs. 1156.29 Cr. and Equity Capital is Rs. 10.14 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Electric Equipment - Gensets/Turbines409, Tower B, DLF Commercial Complex, New Delhi Delhi 110025ho.legal@hspp.com
http://www.hondasielpower.com
Management
NamePosition Held
Mr. Shigeki IwamaChairman & M.D & CEO
Mr. Vinay MittalWholeTime Director & CFO
Mr. Akihiro SakuraiWhole Time Director
Mr. Nitin SavaraIndependent Director
Ms. Alka Marezban BharuchaIndependent Director
Mr. Ravi Prakash MehrotraIndependent Director
Ms. Anuradha DuttIndependent Director
Ms. Kaori OsakadaNon Executive Director

FAQ

What is the latest intrinsic value of ?

The latest intrinsic value of as on 22 December 2024 is ₹4191.95, which is 43.76% higher than the current market price of ₹2,916.00. The stock has a market capitalization of 2,957 Cr. and recorded a high/low of 4,500/2,145 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹809 Cr and total liabilities of ₹951 Cr.

What is the Market Cap of ?

The Market Cap of is 2,957 Cr..

What is the current Stock Price of as on 22 December 2024?

The current stock price of as on 22 December 2024 is 2,916.

What is the High / Low of stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of stocks is 4,500/2,145.

What is the Stock P/E of ?

The Stock P/E of is 44.9.

What is the Book Value of ?

The Book Value of is 807.

What is the Dividend Yield of ?

The Dividend Yield of is 0.60 %.

What is the ROCE of ?

The ROCE of is 15.5 %.

What is the ROE of ?

The ROE of is 11.5 %.

What is the Face Value of ?

The Face Value of is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in . Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE