Honda Siel Power Face Value - Rs 10 Buy Rs 253.15
Ticker : 522064 Equity: Rs 10.14 crore H/L: Rs 275/ 140.75
Honda Siel Power Products (HSPPL) offers a range of portable power products like, gensets, engines, water pumping sets, lawnmower and brush cutters. Likely surge in demand for the products offered along with focus on rationalizing the costs would enable it to scale up its financial factors like longer duration power disturbances.
On the back of rising demand for higher-end gensets from small industrial/private setups and the company's focus on the same, the realization is expected to improve and thereby drive up sales.
HSPPL is focusing on developing new applications for its general purpose engines (GPE). With volumes likely to increase by around 15 per cent and margins remaining more-or-less stable, the business of GPE and water pump sets is expected to contribute to the company's sales growth. With its cash and land valued at Rs 126/share, the stock provides adequate cushioning to investors thus protecting the downside risk. At the CMP of Rs 258, the stock is trading at 15x of its FY07 EPS of Rs 17.10. We recommend a buy on this counter at the current level.
Ticker : 522064 Equity: Rs 10.14 crore H/L: Rs 275/ 140.75
Honda Siel Power Products (HSPPL) offers a range of portable power products like, gensets, engines, water pumping sets, lawnmower and brush cutters. Likely surge in demand for the products offered along with focus on rationalizing the costs would enable it to scale up its financial factors like longer duration power disturbances.
On the back of rising demand for higher-end gensets from small industrial/private setups and the company's focus on the same, the realization is expected to improve and thereby drive up sales.
HSPPL is focusing on developing new applications for its general purpose engines (GPE). With volumes likely to increase by around 15 per cent and margins remaining more-or-less stable, the business of GPE and water pump sets is expected to contribute to the company's sales growth. With its cash and land valued at Rs 126/share, the stock provides adequate cushioning to investors thus protecting the downside risk. At the CMP of Rs 258, the stock is trading at 15x of its FY07 EPS of Rs 17.10. We recommend a buy on this counter at the current level.
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