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.