Honda India Power surges 13%; stock hits over four-year high
Shares of Honda India Power Products hit over four-year high of Rs 1,585.95, after rallying 13 per cent on the BSE in Tuesday’s intra-day trade on expectation of strong earnings. The stock of industrial equipments company traded at its highest level since February 2018. Earlier, it had hit a record high of Rs 1,750 on November 7, 2016.
In the past one month, the stock rallied 25 per cent after its fellow subsidiary Honda Cars India Ltd (HCIL) started production of the upcoming electric hybrid version of its popular sedan, 'City.' CLICK HERE In comparison, the S&P BSE Sensex was down 7 per cent during the same period.
Honda India Power Products is primarily engaged in manufacturing and marketing portable gensets, water pumps, general purpose engines, lawn mowers, brush cutters and tillers. The company caters to both domestic and international markets.
For the first nine months (April-December) of the financial year 2021-22 (9MFY22), the company’s profit after tax (PAT) increased 77 per cent year on year to Rs 58.95 crore from Rs 23.28 crore in 9MFY21. It had posted PAT of Rs 48.67 crore in entire FY21. Besides that, the company’s revenue from operations grew 30 per cent YoY to Rs 833 crore in 9MFY22 against Rs 643 crore during the same period last fiscal.
Meanwhile, the company remains confident of gasoline fueled engine and water pump business to perform well and anticipates complete transition out of kerosene-powered products.
"Additional support for agriculture and horticulture sectors from various state governments particularly during the ongoing pandemic helped to increase the sales of engines and water pumps in the main selling season. Our gasoline engines are also making inroads into the construction segment. Such acceptance has boosted the company’s efforts to gradually shift its line-up from kerosene to gasoline,” the company added in its FY21 annual report.