Saturday, October 8, 2011

HONDA SIEL POWER PRODUCTS - BUY














Honda Siel Power Ltd ( HSPPL) is a 67% subsidiary of Honda Motor Company Japan  and it is the largest manufacturer of portable generators, water pump-sets  in India .Company also producing general-purpose engines.HSPPL enjoying very good market share it all of its categories .Company is enjoying very good support from its parent Honda Motors which is the second largest engine maker in the world.Very strong R&D of the parent company is helping it to introduce new products time to time and also increasing the fuel efficiency of its best selling portable genset range.Mechanization of farming activities is unavoidable due to scarcity of labourers and the entry of corporates into the farming sector.Company's newly introduced products like Brush Cutters and Small Tillers are very helpful even for small farmers.Due to increasing food inflation, government is expected to give special attention in farming sector going forward.Government's decision to give subsidy to farmers to buy agriculture equipments like pump sets, brush cutter..etc will help the company in a big way. In a power deficient country like India , Honda Siel is the undisputed leader in the portable genset manufacturing.Company having a strong network of 800 dealers all over India.HSPPL posted a turnover of Rs.412 Cr and a net profit of Rs.30 Cr in last year .This debt free company having a reserve of Rs.213 Cr as on 31 March 2011.Modernization and Mechanization in agriculture space is offering excellent opportunities for this MNC subsidiary .One can consider buying it at CMp of Rs.337 or in  further dip.
                                                                               

13 comments :

  1. Dear Value pick,

    please give me your comments on tirupati inks.

    ReplyDelete
  2. Dear Value Pick,
    I have some reasonable amount of investment in Biocon. Please give me your comments on the same for long term prospective

    ReplyDelete
  3. Daer Mm

    Not tracking Tirupati Inks

    ReplyDelete
  4. Dear Syam

    HOLD Biocon for long term

    ReplyDelete
  5. DEAR VALUE
    I BOUGHT TATA CHEM @ 328/-. BUT IT SUDDENLY FALL FROM THERE. NOW THE NEWS THAT RIL GIVE SHOWCAUSE NOTICE TO WHY NOT STOP THE GAS TO TATA CHEM'S UP UNIT. IS IT ANY ADVERSE EFFECT FROM IT?
    PATIDAR

    ReplyDelete
  6. VP, whats your view on Savita Oil Tech. It has come down to a good buy level, good dividend yield, good results, good EPS. Kindly advise.

    ReplyDelete
  7. Sir,
    your current view on HCC and RAMKY INFRA with long term perspective, please.

    ReplyDelete
  8. sir what is ur view on one of ur recommendation ie--eastern gases do u think one can keep it for long term -- waiting for ur valuable advice...

    ReplyDelete
  9. Dear Patidar

    Reasons for the action of RIL are in courts at present and it is expected to solve soon.Moreover Tata Chemicals is Global company now and not depends only on this plant.So even if there may be some impact in the coming quarter,not expecting much damage in longer term.So one may Hold it and BUY if there is any further dip.

    ReplyDelete
  10. Dear NR

    SOTL is good one. Keep watch the crude price.Raw material is crude derivative.

    ReplyDelete
  11. Dear Madhu


    Hold both if you have a long term view

    ReplyDelete
  12. No change about the opinion on Eastern Gas

    ReplyDelete

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