Electric Equipment · Founded 1985 · www.hondasielpower.com · BSE 522064 · NSE HONDAPOWER · ISIN INE634A01018
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Business
Honda India Power Products Ltd. (HIPP) is a subsidiary of Honda Motor Co., Japan, primarily engaged in the manufacturing and marketing of a wide range of power products in India. Its core business revolves around portable generators, water pumps, general-purpose engines, tillers/power weeders, and lawnmowers. The company's business model involves manufacturing these products in India, leveraging Honda's global technology and quality standards, and distributing them through an extensive dealer network across the country. It makes money by selling these products to individuals, farmers, small businesses, and institutions for various applications, including power backup, agriculture, construction, and domestic use.
Revenue Mix
While specific revenue contribution percentages are not provided in the prompt, HIPP's primary product segments include:
Portable Generators: Used for power backup in homes, shops, and small establishments.
Water Pumps: Utilized mainly in agriculture for irrigation and water transfer.
Tillers / Power Weeders: Agricultural machinery for soil preparation and weeding.
General Purpose Engines: Supplied to various OEMs for integration into different types of equipment.
Lawn Mowers & Brush Cutters: Used for gardening and landscaping purposes.
The company also offers related spare parts and after-sales service.
Industry
The Indian power products industry is characterized by significant demand from the agriculture sector, small businesses requiring reliable power backup, and a growing need for mechanization. The market is competitive, comprising both organized players (domestic and international) and a large unorganized sector. Honda India Power Products is positioned as a premium player known for its reliability, fuel efficiency, lower emissions, and strong brand reputation. It differentiates itself through product quality, technological superiority, and an extensive sales and service network, often commanding a premium over generic or unbranded alternatives.
MOAT
Brand Strength: The "Honda" brand name instills significant trust, quality assurance, and reliability in the minds of Indian consumers, built on its global reputation.
Technological Prowess: Access to Honda's global R&D and engineering expertise ensures advanced, fuel-efficient, and low-emission products, often meeting stringent environmental norms.
Distribution & Service Network: HIPP has established a wide and deep dealer and service network across India, especially in semi-urban and rural areas, which is crucial for sales and after-sales support in this product category.
Product Quality & Durability: Honda products are generally perceived as high-quality and durable, leading to lower maintenance costs and longer operational life, which attracts customers despite a higher initial price point.
Growth Drivers
Agricultural Mechanization: Increasing adoption of modern farming practices and government initiatives to boost agricultural productivity drive demand for power tillers, water pumps, and other agri-equipment.
Rural Electrification & Power Deficit: While rural electrification is progressing, the intermittent nature of grid power in many areas sustains demand for generators and portable power solutions.
Infrastructure Development: Construction activities and small-scale industries contribute to demand for power products like generators and engines.
Growing Disposable Income: Rising incomes in rural and semi-urban areas can lead to higher spending on quality power products.
Exports: Leveraging its manufacturing capabilities, HIPP may expand its export footprint to neighboring countries.
Risks
Dependence on Monsoon & Agriculture: A significant portion of demand, particularly for water pumps and tillers, is linked to agricultural output and favorable monsoon seasons. Poor monsoons can impact sales.
Intense Competition: The market faces fierce competition from domestic players, other international brands, and a large unorganized sector offering lower-priced alternatives, potentially impacting market share and margins.
Raw Material Price Volatility: Fluctuations in global commodity prices (metals, plastics) can affect manufacturing costs and profitability.
Regulatory Changes: Stricter emission norms or other product-related regulations could necessitate R&D investments and cost adjustments.
Economic Slowdown: A general economic downturn or reduced rural spending could curb demand for power products.
Management & Ownership
Honda India Power Products Ltd. is a subsidiary of Honda Motor Co., Japan. This indicates strong parentage, access to global best practices, and a culture of quality and innovation. The management team operates under the strategic direction and quality standards set by the global Honda group, typically adhering to professional corporate governance practices. The ownership structure is predominantly controlled by Honda Motor Co., Japan, providing stability and long-term vision.
Outlook
Honda India Power Products is well-positioned to benefit from India's long-term growth trends in agriculture mechanization, rural development, and the ongoing need for reliable power solutions. Its strong brand, established distribution, and focus on quality and efficiency provide a competitive edge. However, the company faces headwinds from intense price competition, susceptibility to agricultural cycles and monsoon variability, and potential raw material cost pressures. The ability to maintain its premium positioning while expanding market reach in price-sensitive segments and adapting to evolving customer needs and regulatory environments will be crucial for sustained growth.
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| #(Fig in Cr.) | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 263 | 231 | 144 | 177 | 204 | 269 | 155 | 176 | 270 | 265 |
| Other Income | 10 | 12 | 11 | 10 | 10 | 11 | 10 | 9 | 8 | 10 |
| Total Income | 273 | 243 | 155 | 187 | 215 | 280 | 165 | 185 | 279 | 274 |
| Total Expenditure | 230 | 221 | 128 | 170 | 183 | 225 | 146 | 164 | 238 | 235 |
| Operating Profit | 43 | 22 | 27 | 17 | 31 | 55 | 18 | 21 | 40 | 40 |
| Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Depreciation | 5 | 5 | 5 | 5 | 5 | 6 | 6 | 6 | 6 | 6 |
| Exceptional Income / Expenses | 0 | 4 | 0 | 0 | 0 | 0 | 0 | 0 | -12 | 2 |
| Profit Before Tax | 38 | 21 | 22 | 11 | 26 | 49 | 13 | 15 | 23 | 35 |
| Provision for Tax | 10 | 5 | 6 | 3 | 7 | 12 | 3 | 4 | 6 | 8 |
| Profit After Tax | 28 | 16 | 16 | 9 | 19 | 36 | 9 | 11 | 17 | 27 |
| Adjustments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit After Adjustments | 28 | 16 | 16 | 9 | 19 | 36 | 9 | 11 | 17 | 27 |
| Adjusted Earnings Per Share | 27.9 | 15.6 | 15.9 | 8.4 | 18.8 | 35.7 | 9.3 | 11 | 16.4 | 26.5 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 631 | 673 | 702 | 768 | 816 | 849 | 939 | 1156 | 1246 | 989 | 794 | 866 |
| Other Income | 8 | 13 | 16 | 15 | 18 | 16 | 15 | 17 | 19 | 42 | 42 | 37 |
| Total Income | 639 | 685 | 718 | 783 | 834 | 864 | 953 | 1173 | 1265 | 1031 | 837 | 903 |
| Total Expenditure | 561 | 586 | 606 | 665 | 725 | 756 | 866 | 1054 | 1111 | 890 | 707 | 783 |
| Operating Profit | 77 | 100 | 112 | 118 | 109 | 109 | 87 | 120 | 154 | 141 | 130 | 119 |
| Interest | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 0 |
| Depreciation | 21 | 24 | 23 | 23 | 21 | 22 | 20 | 19 | 21 | 20 | 22 | 24 |
| Exceptional Income / Expenses | 3 | 0 | 0 | 0 | -4 | 4 | 0 | 0 | -18 | 4 | 0 | -10 |
| Profit Before Tax | 59 | 75 | 88 | 94 | 83 | 90 | 66 | 100 | 115 | 124 | 108 | 86 |
| Provision for Tax | 20 | 26 | 30 | 33 | 29 | 24 | 17 | 26 | 30 | 32 | 28 | 21 |
| Profit After Tax | 39 | 49 | 58 | 61 | 54 | 67 | 49 | 75 | 85 | 92 | 80 | 64 |
| Adjustments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit After Adjustments | 39 | 49 | 58 | 61 | 54 | 67 | 49 | 75 | 85 | 92 | 80 | 64 |
| Adjusted Earnings Per Share | 38.1 | 48.1 | 57 | 60.6 | 53.4 | 65.6 | 48 | 73.5 | 83.9 | 90.9 | 78.8 | 63.2 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | -20% | -12% | -1% | 2% |
| Operating Profit CAGR | -8% | 3% | 4% | 5% |
| PAT CAGR | -13% | 2% | 4% | 7% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | -24% | 0% | 15% | 6% |
| ROE Average | 10% | 11% | 11% | 12% |
| ROCE Average | 13% | 15% | 15% | 17% |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Shareholder's Funds | 325 | 367 | 423 | 474 | 517 | 570 | 606 | 670 | 737 | 812 | 864 |
| Minority's Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Borrowings | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Current Liabilities | 143 | 162 | 1 | 1 | -3 | -4 | -4 | -5 | -13 | 429 | 375 |
| Total Current Liabilities | 140 | 149 | 111 | 121 | 138 | 144 | 183 | 190 | 191 | 179 | 184 |
| Total Liabilities | 608 | 677 | 535 | 596 | 652 | 710 | 785 | 854 | 916 | 1420 | 1422 |
| Fixed Assets | 123 | 112 | 107 | 101 | 95 | 98 | 91 | 87 | 91 | 98 | 107 |
| Other Non-Current Assets | 181 | 202 | 86 | 74 | 65 | 56 | 95 | 144 | 75 | 553 | 500 |
| Total Current Assets | 304 | 363 | 342 | 421 | 493 | 556 | 599 | 624 | 750 | 769 | 816 |
| Total Assets | 608 | 677 | 535 | 596 | 652 | 710 | 785 | 854 | 916 | 1420 | 1422 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 21 | 15 | 23 | 41 | 21 | 18 | 35 | 80 | 122 | 115 | 106 |
| Cash Flow from Operating Activities | 43 | 101 | 40 | 55 | 21 | -18 | 152 | 37 | 157 | 106 | 22 |
| Cash Flow from Investing Activities | -44 | -86 | -13 | -65 | -13 | 47 | -92 | 16 | -150 | -99 | -70 |
| Cash Flow from Financing Activities | -5 | -7 | -8 | -9 | -11 | -13 | -14 | -11 | -16 | -18 | -28 |
| Net Cash Inflow / Outflow | -5 | 7 | 19 | -20 | -3 | 17 | 45 | 42 | -9 | -11 | -76 |
| Closing Cash & Cash Equivalent | 15 | 23 | 41 | 21 | 18 | 35 | 80 | 122 | 115 | 106 | 31 |
| # | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Per Share (Rs) | 38.08 | 48.14 | 56.98 | 60.56 | 53.4 | 65.6 | 48 | 73.5 | 83.92 | 90.94 | 78.84 |
| CEPS(Rs) | 59.09 | 71.62 | 80.11 | 82.76 | 74.24 | 87.38 | 67.98 | 91.77 | 104.41 | 110.88 | 100.34 |
| DPS(Rs) | 6 | 6 | 7.5 | 9 | 10 | 12.5 | 10 | 15 | 16.5 | 17.5 | 31.5 |
| Book NAV/Share(Rs) | 320.48 | 361.4 | 416.68 | 467.9 | 509.96 | 561.75 | 597.15 | 660.63 | 726.57 | 800.9 | 851.61 |
| Core EBITDA Margin(%) | 10.54 | 12.33 | 13.07 | 13.2 | 11.14 | 10.97 | 7.73 | 8.88 | 10.85 | 10 | 11.05 |
| EBIT Margin(%) | 9.02 | 10.76 | 12.09 | 12.22 | 10.28 | 10.74 | 7.12 | 8.73 | 9.31 | 12.56 | 13.63 |
| Pre Tax Margin(%) | 8.93 | 10.63 | 11.97 | 12.14 | 10.21 | 10.66 | 7.04 | 8.65 | 9.26 | 12.51 | 13.56 |
| PAT Margin (%) | 5.85 | 6.91 | 7.85 | 7.9 | 6.64 | 7.84 | 5.18 | 6.45 | 6.83 | 9.32 | 10.07 |
| Cash Profit Margin (%) | 9.09 | 10.29 | 11.03 | 10.79 | 9.23 | 10.44 | 7.34 | 8.05 | 8.49 | 11.37 | 12.81 |
| ROA(%) | 6.73 | 7.6 | 9.54 | 10.86 | 8.68 | 9.77 | 6.51 | 9.09 | 9.62 | 7.9 | 5.62 |
| ROE(%) | 12.48 | 14.12 | 14.64 | 13.69 | 10.92 | 12.24 | 8.28 | 11.69 | 12.1 | 11.91 | 9.54 |
| ROCE(%) | 19.22 | 21.97 | 22.55 | 21.18 | 16.92 | 16.77 | 11.37 | 15.84 | 16.5 | 16.05 | 12.92 |
| Receivable days | 21.62 | 18.61 | 14.88 | 21.12 | 28.47 | 24.35 | 25.62 | 26.74 | 23.13 | 22.43 | 38.79 |
| Inventory Days | 62.36 | 53.47 | 51.92 | 49.67 | 45.28 | 69.4 | 72.22 | 53.17 | 50.28 | 56.81 | 59.69 |
| Payable days | 60.04 | 60.14 | 58.45 | 59.09 | 58.02 | 61.96 | 60.6 | 57.87 | 51.64 | 59.14 | 74.57 |
| PER(x) | 29.47 | 27.25 | 23.52 | 22.01 | 20.34 | 12.73 | 19.96 | 16.77 | 23.99 | 24.4 | 25.71 |
| Price/Book(x) | 3.5 | 3.63 | 3.22 | 2.85 | 2.13 | 1.49 | 1.6 | 1.87 | 2.77 | 2.77 | 2.38 |
| Dividend Yield(%) | 0.53 | 0.46 | 0.56 | 0.68 | 0.92 | 1.5 | 1.04 | 1.22 | 0.82 | 0.79 | 1.55 |
| EV/Net Sales(x) | 1.7 | 1.75 | 1.73 | 1.51 | 1.28 | 0.96 | 0.89 | 0.84 | 1.26 | 1.73 | 1.91 |
| EV/Core EBITDA(x) | 13.89 | 11.78 | 10.83 | 9.87 | 9.59 | 7.45 | 9.6 | 8.14 | 10.19 | 12.16 | 11.64 |
| Net Sales Growth(%) | 16.51 | 6.67 | 4.31 | 9.41 | 6.26 | 4.02 | 10.64 | 23.15 | 7.78 | -20.64 | -19.7 |
| EBIT Growth(%) | 102.39 | 27.7 | 17.13 | 6.78 | -11.71 | 8.66 | -26.7 | 51.16 | 14.91 | 7.07 | -12.91 |
| PAT Growth(%) | 105.63 | 26.42 | 18.33 | 6.28 | -11.82 | 22.84 | -26.83 | 53.13 | 14.17 | 8.37 | -13.31 |
| EPS Growth(%) | 105.63 | 26.42 | 18.37 | 6.28 | -11.82 | 22.84 | -26.83 | 53.13 | 14.17 | 8.37 | -13.31 |
| Debt/Equity(x) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Current Ratio(x) | 2.17 | 2.44 | 3.08 | 3.47 | 3.57 | 3.86 | 3.27 | 3.29 | 3.92 | 4.3 | 4.45 |
| Quick Ratio(x) | 1.33 | 1.85 | 1.99 | 2.72 | 2.76 | 2.4 | 2.39 | 2.36 | 3.04 | 3.51 | 3.8 |
| Interest Cover(x) | 107.77 | 84.76 | 102.28 | 141.81 | 147.16 | 128.37 | 99.72 | 108.59 | 178.54 | 234.45 | 208.12 |
| Total Debt/Mcap(x) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 66.67 | 66.67 | 66.67 | 66.67 | 66.67 | 66.67 | 66.67 | 66.67 | 66.67 | 66.67 |
| FII | 1.59 | 1.45 | 1.42 | 1.41 | 1.36 | 1.37 | 1.17 | 1.1 | 1.09 | 1.05 |
| DII | 14.82 | 15.31 | 16.92 | 17.95 | 18.18 | 18.18 | 18.23 | 18.23 | 18.23 | 18.27 |
| Public | 16.93 | 16.57 | 14.99 | 13.98 | 13.79 | 13.79 | 13.94 | 14.01 | 14.02 | 14.02 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 0.68 | 0.68 | 0.68 | 0.68 | 0.68 | 0.68 | 0.68 | 0.68 | 0.68 | 0.68 |
| FII | 0.02 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| DII | 0.15 | 0.16 | 0.17 | 0.18 | 0.18 | 0.18 | 0.18 | 0.18 | 0.18 | 0.19 |
| Public | 0.17 | 0.17 | 0.15 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 1.01 | 1.01 | 1.01 | 1.01 | 1.01 | 1.01 | 1.01 | 1.01 | 1.01 | 1.01 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | -20% | -12% | -1% | +2% |
| Operating Profit CAGR | -8% | +3% | +4% | +5% |
| PAT CAGR | -13% | +2% | +4% | +7% |
| Share Price CAGR | -24% | 0% | +15% | +6% |
| ROE Average | +10% | +11% | +11% | +12% |
| ROCE Average | +13% | +15% | +15% | +17% |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 66.67 | 66.67 | 66.67 | 66.67 | 66.67 | 66.67 | 66.67 | 66.67 | 66.67 | 66.67 |
| FII | 1.59 | 1.45 | 1.42 | 1.41 | 1.36 | 1.37 | 1.17 | 1.1 | 1.09 | 1.05 |
| DII | 14.82 | 15.31 | 16.92 | 17.95 | 18.18 | 18.18 | 18.23 | 18.23 | 18.23 | 18.27 |
| Public | 33.33 | 33.33 | 33.33 | 33.33 | 33.33 | 33.33 | 33.33 | 33.33 | 33.33 | 33.33 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 0.68 | 0.68 | 0.68 | 0.68 | 0.68 | 0.68 | 0.68 | 0.68 | 0.68 | 0.68 |
| FII | 0.02 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| DII | 0.15 | 0.16 | 0.17 | 0.18 | 0.18 | 0.18 | 0.18 | 0.18 | 0.18 | 0.19 |
| Public | 0.34 | 0.34 | 0.34 | 0.34 | 0.34 | 0.34 | 0.34 | 0.34 | 0.34 | 0.34 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 1.01 | 1.01 | 1.01 | 1.01 | 1.01 | 1.01 | 1.01 | 1.01 | 1.01 | 1.01 |
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