Fundamental Analysis

HONDA INDIA POWER PRODUCTS LTD. 

Ticker : 522064
BUY: ₹ 1,418
Target: ₹ 1,590

Honda India Power Products Ltd is engaged in manufacturing & marketing portable gensets, water pumps, general-purpose engines, lawnmowers, brush cutters, and tillers. On the standalone quarterly front, the company recorded net sales and operating income of Rs 337.51 crore for Q3FY22, registering a growth of 18.23 per cent as compared to Q3FY21. The operating profit ascended by 5.25 per cent to reach Rs 35.86 crore in Q3FY22 from Rs 34.07 crore posted in Q3FY21. The net profit was reported at Rs 23.24 crore in Q3FY22 from Rs 20.92 crore in Q3FY21, rising 11.09 per cent. Recently, the company announced that it has geared up plans to launch its range of marine power products in India to expand its footprint. The company is looking to invest approximately Rs 5 crore over the next few years to widen its business in the local market. Hence, looking at the optimistic plans opted by the company for future growth, we recommend BUY.