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Honda India Power Products Limited (HONDAPOWER) Fair Value & Analysis

Industrials · IN · Market cap ₹22.3B

HI Honda India Power Products Limited HONDAPOWER · NSE
Price₹2,150
Fair Value₹1,077
Upside-49.9%
Quality54/100
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Weak Growth
Thin margins · 7.4% net margin
negative free cash flow
5.84% dividend yield
Mixed vs. peers (6/12)
Narrow moat 37/100
Evidence: High Range ₹812.44 – ₹1,346 Share as image

Fair value as of: Aug 13, 2026

From 17 valuation models · updated 3 days ago

Share price +2.0% over the past month.

A solid business, but screening 50% overvalued on our models.

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What matters now

  • The price sits above even our optimistic bull case (₹1,346). The favourable scenario is already priced in.
  • Solid but not exceptional quality (54/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

₹4,154 ₹880.20 Fair Value ₹1,077 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range ₹880.20 – ₹4,154 · fair‑value band ₹812.44 – ₹1,346 · the ₹2,150 price screens above the ₹1,077 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Honda India Power Products Limited (HONDAPOWER) currently trades at ₹2,150, while our model-based Fair Value estimate is ₹1,077, implying the stock looks roughly 49.9% overvalued today. The Quality Score stands at 54/100 (solid quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Honda India Power Products Limited generated revenue of ₹8.7B at a net margin of 7.4%. Revenue declined 1.5% year over year. It earns a return on equity of 7.7%. The balance sheet holds a net cash position of ₹784M. Fundamentals as of Aug 13, 2026

Our scenario range runs from ₹812.44 (bear case) to ₹1,346 (bull case); at ₹2,150, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 31% below its 52-week high and 18% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -67% fair-value upside, at -50%, HONDAPOWER screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income ₹666.48 ₹716.64 ₹802.43 76
Gordon GGM ₹1,142 ₹2,374 ₹3,766 70
Growth-Adj P/E ₹810.50 ₹1,158 ₹1,505 68
All 17 models by family
DCF Models
Owner Earnings ₹483.29 ₹699.30 ₹1,024 31
Earnings-Based
Graham-Dodd ₹430.67 ₹1,273 ₹1,684 54
Lynch FV ₹267.33 ₹381.90 ₹496.47 50
PEG = 1.0 ₹267.33 ₹381.90 ₹496.47 46
EPV ₹426.00 ₹483.95 ₹534.66 59
Dividend Discount
Gordon GGM ₹1,142 ₹2,374 ₹3,766 70
DDM Multi-Stage ₹1,142 ₹1,846 ₹2,491 61
Multiples
P/E Multiple ₹997.51 ₹1,330 ₹1,663 63
P/S Multiple ₹807.51 ₹1,077 ₹1,346 58
P/B Multiple ₹807.51 ₹1,077 ₹1,346 55
EV/EBIT ₹813.41 ₹1,058 ₹1,303 53
EV/EBITDA ₹863.84 ₹1,126 ₹1,388 54
EV/Revenue ₹602.97 ₹827.83 ₹1,053 43
Asset-Based
NCAV (Graham) ₹396.02 ₹530.67 ₹792.04 50
Economic Profit
Residual Income ₹666.48 ₹716.64 ₹802.43 76
ROIC Compounder ₹426.00 ₹483.95 ₹534.66 67
Growth Earnings
Growth-Adj P/E ₹810.50 ₹1,158 ₹1,505 68

Widest divergence: Dividend Discount (₹1,846) versus Earnings-Based (₹381.90). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) ₹8.7B
Revenue growth (YoY) -1.5%
Net margin 7.4%
Return on equity 7.7%
Free cash flow −₹221M FY2026
P/E ratio 34.0
More key figures
Operating margin 9.0%
EPS (TTM) ₹63.26
Dividend yield 5.8%
EPS growth (YoY) -25.5%
Net cash ₹784M FY2026

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 54/100

Of which business quality 53 · Market factors (momentum, volatility) 40

Profitability 44
Margins and returns on capital today
Quality Growth 35
Are margins and returns improving?
Cashflow 8
Earnings quality: real cash, not paper profit
Fin. Strength 85
Balance sheet, leverage, solvency risk
Investment 82
Disciplined investing over empire-building
Low Volatility 79
Calm price path (market factor)
Momentum 28
Price trend over the last 3–12 months (market factor)
52W Momentum 17
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

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. It also markets fishery products comprising long tail outboard motors.

Full company description

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. It also markets fishery products comprising long tail outboard motors. In addition, it provides agriculture products, including reapers, HTP sprayers, and power weeder; and ploughs, manure spreaders, seeders, and harrows, as well as other machineries for soil preparation, planting, and fertilizing, harvesting, and threshing; and power weeder. In addition, the company offers light construction products, such as concrete cutter and vibrator, plate and reversible plate compactor, power trowel, and welder. Further, it provides generator synchronization and AMF panel, power generators, motor generator sets, engines, turbines, pumps, compressors, taps, valves, and chargeover and remote switches. The company was formerly known as Honda Siel Power Products Limited and changed its name to Honda India Power Products Limited in July 2020. Honda India Power Products Limited was incorporated in 1985 and is headquartered in Gautam Buddha Nagar, India. Honda India Power Products Limited is a subsidiary of Honda Motor Co., Ltd.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Honda India Power Products Limited reported revenue of ₹8.7B in FY2026 versus ₹11.4B in FY2022, a compound −6.6%/yr. Reported net income was ₹642M in FY2026, compounding −3.6%/yr from FY2022.

Growth Quality 22/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2026)
₹8.7B
Latest YoY
+9.0%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−11.0%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−1.3%
Avg. growth/yr (21Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.5%
Revenue −6.6%/yr
FY22 ₹11.4B
FY23 ₹12.3B
FY24 ₹9.9B
FY25 ₹7.9B
FY26 ₹8.7B
Net income −3.6%/yr
FY22 ₹745M
FY23 ₹851M
FY24 ₹922M
FY25 ₹799M
FY26 ₹642M
Character of growth · EPS growth decomposed (2015-2026) +5.6 % p.a.
Revenue per share +3.1 pp

of which total revenue +3.1 pp · buybacks/dilution +0.0 pp

EBIT margin +4.1 pp
Tax rate +1.5 pp
Residual (interest, one-offs) −3.2 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

HONDAPOWER screens 50% overvalued. Compare with GE Vernova Inc →

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Cite: Fair Value Calculator (2026). "Honda India Power Products Limited Fair Value". https://www.fairvalue-calculator.com/stock/HONDAPOWER

Peer Group

Specialty Industrial Machinery · 808 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 54 · Above median
Fair Value upside −50% · Below median
Return on equity (TTM) 8% · Above median
Return on assets 4% · Above median
Net margin (TTM) 7% · Above median
Operating margin (TTM) 9% · Above median
Revenue growth -2% · Below median
Dividend yield (TTM) 5.8% · Top 25%

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/E (TTM) 34.0× · Pricier than median
P/B 2.77× · Pricier than median
P/S (TTM) 2.58× · Pricier than median
EV/EBITDA 26.3× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 0
FUTURE 0 · sector 22
PAST 31 · sector 28
HEALTH 0 · sector 96
DIVIDEND 100 · sector 27

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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ABB India Limited ABB ₹7,645 ₹1,322 -83%
Cummins India Limited CUMMINSIND ₹5,315 ₹1,355 -75%
Bharat Heavy Electricals Limited BHEL ₹421.70 ₹96.51 -77%
Siemens Limited SIEMENS ₹4,019 ₹746.83 -81%

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Frequently asked questions

Is Honda India Power Products Limited (HONDAPOWER) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ₹1,077 versus a price of ₹2,150, about −50% (overvalued).
What is the fair value of HONDAPOWER?
Our model-based fair value for Honda India Power Products Limited is ₹1,077 (as of Aug 13, 2026), built from audited fundamentals. The current price is ₹2,150.
What is the quality score of HONDAPOWER?
Honda India Power Products Limited has a Quality Score of 54/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Honda India Power Products Limited (HONDAPOWER)?
Honda India Power Products Limited reported trailing-twelve-month revenue of about ₹8.7B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of HONDAPOWER?
The net profit margin of Honda India Power Products Limited is about 7.4%, meaning it keeps roughly 7.4% of revenue as net income. Based on the latest reported figures.
Does Honda India Power Products Limited pay a dividend?
Honda India Power Products Limited currently shows a dividend yield of about 5.84% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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