Honda India Power Products Limited
Honda India Power Products Limited Fundamental Analysis
Honda India Power Products Limited (HONDAPOWER.NS) shows weak financial fundamentals with a PE ratio of 29.92, profit margin of 8.45%, and ROE of 8.89%. The company generates $8.7B in annual revenue with weak year-over-year growth of -19.70%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 25.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HONDAPOWER.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakHONDAPOWER.NS struggles to generate sufficient returns from assets.
Valuation Score
ModerateHONDAPOWER.NS shows balanced valuation metrics.
Growth Score
WeakHONDAPOWER.NS faces weak or negative growth trends.
Financial Health Score
ExcellentHONDAPOWER.NS maintains a strong and stable balance sheet.
Profitability Score
WeakHONDAPOWER.NS struggles to sustain strong margins.
Key Financial Metrics
Is HONDAPOWER.NS Expensive or Cheap?
P/E Ratio
HONDAPOWER.NS trades at 29.92 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HONDAPOWER.NS's PEG of -9.37 indicates potential undervaluation.
Price to Book
The market values Honda India Power Products Limited at 2.89 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 23.13 times EBITDA. This signals the market has high growth expectations.
How Well Does HONDAPOWER.NS Make Money?
Net Profit Margin
For every $100 in sales, Honda India Power Products Limited keeps $8.45 as profit after all expenses.
Operating Margin
Core operations generate 8.33 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.89 in profit for every $100 of shareholder equity.
ROA
Honda India Power Products Limited generates $7.72 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Honda India Power Products Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Honda India Power Products Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
HONDAPOWER.NS converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.92
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-9.37
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.89
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.53
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.77
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How HONDAPOWER.NS Stacks Against Its Sector Peers
| Metric | HONDAPOWER.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.92 | 26.71 | Worse (Expensive) |
| ROE | 8.89% | 1311.00% | Weak |
| Net Margin | 8.45% | -29317.00% (disorted) | Weak |
| Debt/Equity | 0.00 | 0.75 | Strong (Low Leverage) |
| Current Ratio | 3.77 | 10.53 | Strong Liquidity |
| ROA | 7.72% | -1537638.00% (disorted) | Weak |
HONDAPOWER.NS outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Honda India Power Products Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-6.41%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
20.18%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
225.37%
Industry Style: Cyclical, Value, Infrastructure
High Growth