✅ At a Glance
| Metric | FY25 (Standalone) |
|---|---|
| 🧾 Revenue from Operations | ₹1,733.5 Cr |
| 💰 Total Income | ₹1,758.2 Cr |
| 🧨 Net Profit (PAT) | ₹867.7 Cr (BOOM) |
| 🧮 EPS (Basic & Diluted) | ₹84.50+ est. |
| 🚀 CMP (20 May 2025) | ₹2,795 🔼 +20% today |
| 🔮 FV (Edu Estimate) | ₹1,350–1,600 |
| 📦 Segment | Power Equipment |
EPS ka inverter blast ho gaya — this is not a silent genset anymore, it’s a screaming powerhorse. But wait… there’s a twist.
🏭 About the Company
Honda India Power Products Ltd. makes:
- 🧯 Portable Gensets
- 💧 Water Pumps
- 🔨 Engines
- 🧊 Industrial and agri-use power equipment
It’s a subsidiary of Honda Motor Co., Japan, with a global export footprint and rural + defence + infra customer base.
📊 FY25 Financial Breakdown
| Line Item | FY25 (₹ Cr) |
|---|---|
| Revenue from Operations | ₹1,733.5 Cr |
| Other Income | ₹24.7 Cr |
| Total Expenses | ₹1,494.5 Cr |
| Profit Before Tax (Pre-Exceptional) | ₹263.7 Cr |
| Exceptional Income | ₹604 Cr 🚨 |
| Profit Before Tax (Total) | ₹867.7 Cr |
| Estimated EPS | ₹84.50 |
💥 Key Note:
That ₹604 Cr jump is from exceptional items — probably sale of land, old factory, or asset rejig.
So actual operations = decent
But FY25 PAT = one-time sugar rush
🧮 Edu Fair Value Calculation
Let’s assume normalised EPS = ₹22 (without exceptional item)
And fair P/E = 20x (for a mature power stock)
✅ Fair Value = ₹22 × 20 = ₹440
Even if we stretch to a growth-based EPS of ₹30, FV maxes out at ₹600
➡️ Current CMP = ₹2,795 → 4x overvalued
💣 The 20% Surge – What’s Driving It?
- 📈 Big PAT headline (₹867 Cr = clickbait)
- 📄 Likely special dividend or buyback buzz
- 🧠 Investors not reading “exceptional item” footnotes
- 🧧 Hope of land monetisation or real estate play
The market LOVES sudden PAT jumps… even if they’re one-timers.
🏦 Balance Sheet Quality
| Item | FY25 |
|---|---|
| Borrowings | ₹0 ✅ |
| Cash Reserves | ~₹200 Cr est. |
| Debt-Equity | 0 |
| Capex / Depreciation Ratio | Healthy |
Low-debt, high-return business model. But not scalable like an EV startup.
🔁 What to Watch for in FY26?
- Will EPS drop back to ₹25–30?
- Any real capacity expansion or product innovation?
- Will the exceptional gain repeat (unlikely)?
- Management commentary on future revenue drivers?
🧠 EduInvesting Take
“You didn’t buy a Honda City. You bought the generator under the dealership.”
This stock just pulled a Diwali cracker on PAT — but don’t be fooled by the flash.
Great company. One-time PAT. Mad valuation.
Unless the next year replicates ₹600 Cr PAT without a miracle, this price won’t hold.
🏁 Final Verdict
✔️ Quality Japanese pedigree
✔️ EPS explosion (one-time)
✔️ ₹1,700+ Cr revenue base
❌ CMP ₹2,795 = 4x fair value
❌ 70% of PAT = exceptional
❌ Growth narrative missing
“Cool to brag about today’s 20% spike. But if you’re buying now? Be ready to hold till the inverter dies again.”
Tags: Honda India Power FY25 results, EPS ₹84, CMP ₹2795, exceptional income stock, generator stocks India, Honda subsidiary India, BSE 522064, EduInvesting fundamental analysis
