Honda India Power Products Limited

Industrials — Specialty Industrial Machinery · NSE

₹1,840.00+₹13.30 (+0.73%)

DalalBaazaar Score

45 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

The 60-second version of Honda India Power Products Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Honda India Power Products Limited engages in the manufacture, marketing, and sale of portable generators, water pumps, general purpose engines, lawn mowers, brush cutters, hand tools, portable gensets, tillers, and marine engines in India and internationally.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees711

Annual revenue₹859 Cr

How does it make money?

Turns over ₹859 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation. Each of its 711 employees supports ₹1.21 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.21 Cr

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, LARSEN & TOUBRO LTD., HAVELLS INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 10.7% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE17.1%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved -30% while net margin moved +8% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-30%

Margin effect+8%

DalalBaazaar Score

45/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 11.2% a year
✗ Profit has declined at 8.9% a year

Quality vs. Valuation

Company Quality

42/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

59/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

28.3x

3Y Median

30.0x

40 monthly readings · mean 31.3x · range 21.4x–47.7x

Sector Median

66.2x

median of 4 sector peers

🟡Currently trading close to its 3y median of 30.0x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 57% below the peer median of 66.2x.

vs. its own history

Fair

30.0x median over 40 months · -5%

vs. sector peers

Cheap

66.2x median of 4 peers · -57%

vs. generic bands

Fair

15x–35x

EV/EBITDA

15.1x

PEG

1.67

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.12x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 11.5% to 8.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 15.7% to 10.7% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Receivables growing faster than salesFinancial
Receivables up 123% against revenue up -30% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹63 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 25% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 57% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 123% against revenue up -30%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 11.5% to 8.0%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 12%✓ 13.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹63 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✓ 10.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 30.0x✓ 28.3x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 5 neutral · 2 weak

Market Cap

₹1,866 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

28.3x

Fair

Fairly valued against the generic band

P/B Ratio

2.32x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹64.92

Profitable

Profitable on a per-share basis

ROE

8.0%

Weak

Weak capital efficiency

ROCE

10.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.12x

Low

Conservative leverage

Revenue Growth (YoY)

22.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

17.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.44%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹63 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

4.1%

Weak

Thin margins leave little room for error

Net Margin

7.3%

Average

Average bottom-line conversion

Current Ratio

3.36

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.77

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

1878.3 / 1975.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

36.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,228 Cr	₹978 Cr	₹789 Cr	₹859 Cr	-11.2%
EBITDA	₹153 Cr	₹140 Cr	₹129 Cr	₹119 Cr	-8.1%
EBITDA Margin	12.5%	14.3%	16.4%	13.9%	—
PAT (Net Profit)	₹85 Cr	₹92 Cr	₹80 Cr	₹64 Cr	-8.9%
EPS	₹83.89	₹90.91	₹78.81	₹63.33	-8.9%
ROE	11.5%	11.4%	9.3%	8.0%	—
ROCE	15.7%	15.3%	12.5%	10.7%	—
Total Debt	₹1 Cr	₹0 Cr	₹0 Cr	₹1 Cr	+6.9%
Free Cash Flow	₹128 Cr	₹82 Cr	-₹19 Cr	-₹63 Cr	—

🔴 Revenue has shrunk at 11.2% a year over 3 years.

🔴 EBITDA has shrunk at 8.1% a year over 3 years.

🟢 EBITDA Margin has risen from 12.5% to 13.9% over 3 years (+1.4 pts).

🔴 PAT (Net Profit) has shrunk at 8.9% a year over 3 years.

🔴 EPS has shrunk at 8.9% a year over 3 years.

🔴 ROE has fallen from 11.5% to 8.0% over 3 years (-3.6 pts).

🔴 ROCE has fallen from 15.7% to 10.7% over 3 years (-5.0 pts).

🔴 Total Debt has grown at 6.9% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹128 Cr to -₹63 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,032 Cr

Total Liabilities

₹228 Cr

Cash & Equivalents

₹66 Cr

Operating Cash Flow

-₹11 Cr

Capex

-₹52 Cr

Shareholding (proxy)

Institutional Holding

18.8%

Insider Holding

66.7%

Corporate Actions

Dividend Rate

₹26.5

Ex-Dividend Date

19 Aug 2026

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
LARSEN & TOUBRO LTD.	30.1x	15.2%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

3 positive3 general

Honda India Power Products Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

Honda India Power Products vs Nifty 50: Returns Compared

Univest, 28 Sept

Honda India Power approves ₹23 dividend, appoints Jain as WTD

scanx.trade, 26 AugCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Honda India Power Products' (NSE:HONDAPOWER) Problems Go Beyond Weak Profit

Simply Wall Street, 03 Jun

Special dividend stocks: TCS, JSW Dulux, Premco Global, Honda India Power in 6 firms offering extra payout

IndiaIPO, 11 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Honda India Power Products revenue rises 19.3% in Q1FY27 on export surge

scanx.trade, 30 JulResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Valuation · Risk

WeakGrowth · Profitability

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑