Honda Siel Power- Make in India!

Stock Opportunities Not-so-Hidden Gems
22

True Rs.160 crores loan to Honda Cars India Ltd. at rate of 7.4% per annum.

23

Hi,

Regarding these corporate governance issues,is it advisable to book loss and get out of this share.I am a long term investor and holding the share for more than a year now and overall loss is of 30%.Please advice.

Thanks,
Deb

24

Wait for the Q1 results. If those results were bad then exit else you can hold for 1200 levels.

This was consistent compounder stock which have been hammered due to falling sales and corporate governance issues.

Corporate governance issues are the most worrying part as the sales can pick up in coming years.

Disclosure: Tracking from last 1 year but not yet invested.

1 Like
25

Hi,

Quarterly Results are out and it is good.
Sales have increased yoy and profits for the period is 17.65 crore.EPS for the quarter is 17.40 compared to 10.60 (qoq basis) and 12.92 (yoy basis)

Thanks,
Deb

26

Thanks,
Deb

27

Sales in Q4Fy20 fallen by around 15% wrt Q4 FY19 but what the market would be more concerned with is the EBIDTA drop of close to 64%!! Inventories have almost doubled from 11K to 21K since last yr And despite all this, the employee expense have gone up by more than 10%… Not sure if Kenneth Andrew still holds this in his portfolio

1 Like
28

Hi Mayank,

I dont think Kenneth Andrew is holding this stock anymore.Please see the below screenshot from annual report 2019 of Honda Siel.

Screenshot (123)
Screenshot (123)1366×768 75.1 KB

Thanks,
Deb

1 Like
29

Hi,

Honda and Usha International has terminated the longterm the joint venture in India .Now Honda will be the promoter only.They have also rejigged couple if board of directors.

Will this be a long term positive for the company and its shareholders?

Thanks,
Deb

2 Likes
30

Honda india at a very attractive price levels currently…looking to add some at this price.
Any new product launches this year? If anyone has any updates let us know

31

Hi,

Undoubtedly the valuations are cheap.But why?For some reason market must be giving low valuations to it.
1 reason I can think of this is the Industry in which it operates is not growing that fast.specially the generator segment(Company’s most of the revenue’s come from that segment). With Electrification reaching most of the corners of INDIA this industry will be kind of stagnant.(though I dont have data to substantiate my assumptions).Market usually gives low valuations to companies in no growth industry.

Thanks,
Deb

32

Hi, Can someone pls help understand the results and the market reaction thereafter.
HondaPower posted its 3rd quarterly results; a quarter plaqued by Power outages across the nation. Headlines on 4 days of Coal left at major powerplants… I was hoping the results would be Super, specially with the economy opening up and all that…
Actual Results : Sales fell by > 6.7%; EBIDTA down by >30%
And still the market after an initial sell off gave a thumps up… Closed >3.5% higher with 4X the 20D volumes… And its not that its cheap, trading at 18.82 PE while HeroMoto Leader in 2 wheeler with 2.5X the ROCE of HondaPower trades at a lower PE multiple even though its EBIDTA was down by <17% while Honda Siel EBIDTA down by > 30%
All comparisons are YoY (Q3 FY21 to Q3FY20)… Maybe its not an apple to apple comparison, both being in different industries. but still should Honda Power command this valuation? Its netblock is also reducing…
disclosure: holding since last few years but not sure if i should continue holding