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Should I Buy NSE:HONDAPOWER Stock? (19% Forecasted Return) | HONDAPOWER Honda Siel Power Products Limited Stock Forecast



Given that we exclude proposed "best efforts" or potential financings as a source of liquidity, we also exclude from uses of liquidity acquisitions and other discretionary spending that are contingent on the successful issuance of new financing to support the proposed transaction.Under times of stress, such actions could include dividend cuts, suspension of share repurchases, or maintenance of minimum cash balances. This is particularly relevant for exceptional and strong assessments, where issuers are required to carry higher levels of excess liquidity even during times of stress. For example, when assessing liquidity, we would generally expect companies to be able to cover the full amount of dividends and share repurchases included in our base-case forecast, while still maintaining excess liquidity and achieving the required A/B and A-B measures under a stress case. We estimate HONDAPOWER Honda Siel Power Products Limited stock forecast parameters by: Gunn Oscillator with Polynomial Regression because of the level of the two metrics relative to the entity's credit and market risks (19% Forecasted Return)

NSE:HONDAPOWER Stock Forecast (Buy or Sell) as of 22 Jun 2022 for (n+1 year)

Stock: HONDAPOWER Honda Siel Power Products Limited

Time series to forecast n: 22 Jun 2022 for (n+1 year)

x axis:Likelihood %
y axis:Potential Impact %
z axis:Color (yellow to green) Technical Analysis %

Stock Forecast Criteria and Models for HONDAPOWER Honda Siel Power Products Limited

  • We deduct reported goodwill and nonservicing intangible assets from reported equity to calculate ACE, net of any related deferred tax (i.e., by adding back the associated deferred tax liability);
  • We aim to apply a reasonably consistent definition of ACE and TAC, but specific circumstances or reporting differences may require additional adjustments to reported common shareholders' equity. Adjustments may, for instance, apply when we assess that some transactions artificially inflate reported equity, such as unseasoned revaluation of an entity's own premises, reciprocal cross holdings, or the issuance of capital instruments that are indirectly funded by the entity through a related party, such as a holding company or a sister company.
  • For corporates, the country of domicile may still be relevant. We may use the country of domicile as the reference point in some cases--for instance, for globally diversified multinational companies operating in a large number of countries, if we believe there is no material exposure to a single country.
  • On a case-specific basis, we may apply the stress test to more than one country, if we consider the entity to have material exposure to two or more countries. When applying the stress test to more than one country at a time, we might assume the stress affects two or more countries at the same time if we consider economic correlation among the countries to be significant. Should an entity fail the stress test, we would cap the rating at the foreign currency rating on the lowest-rated country for which it failed the test. If we determine that the issuer has no material single-country exposure to a country whose sovereign is rated lower than the potential rating, we may not apply a stress test.
  • Hybrids issued by operating subsidiaries that cannot benefit the wider group in this way are treated as having no equity content in our group consolidated analysis. If, however, they can absorb losses or conserve cash at the issuer level, they are eligible for equity content in our analysis of the operating subsidiary on a stand-alone basis.
  • In addition, for sovereign obligors, consideration of political risks may include an assessment of the potential for war, revolution, or other security-related events to affect creditworthiness. Other qualitative considerations that may be part of an analysis of a governmental obligor include revenue forecasting, expenditure control, long-term capital planning, debt management, and contingency planning. Finally, the assessment of a governmental obligor focuses on the potential that the obligor might default even when it has the resources to meet its financial commitments.
  • We establish a floor RAC charge of zero for each equities group to ensure that unrealized gains cannot lower the risk weight below zero.

Assumptions Underlying The Forecast Model for HONDAPOWER Honda Siel Power Products Limited

In our assessment of a company's liquidity, we also consider the impact of unique industry characteristics.

Frequently Asked QuestionsQ: Is HONDAPOWER Honda Siel Power Products Limited stock buy or sell?
A: Given that we exclude proposed "best efforts" or potential financings as a source of liquidity, we also exclude from uses of liquidity acquisitions and other discretionary spending that are contingent on the successful issuance of new financing to support the proposed transaction.
Q: Is HONDAPOWER Honda Siel Power Products Limited stock expected to go up?
A: Under times of stress, such actions could include dividend cuts, suspension of share repurchases, or maintenance of minimum cash balances. This is particularly relevant for exceptional and strong assessments, where issuers are required to carry higher levels of excess liquidity even during times of stress. For example, when assessing liquidity, we would generally expect companies to be able to cover the full amount of dividends and share repurchases included in our base-case forecast, while still maintaining excess liquidity and achieving the required A/B and A-B measures under a stress case.
Q: What is the forecast for HONDAPOWER Honda Siel Power Products Limited ?
A: In our assessment of a company's liquidity, we also consider the impact of unique industry characteristics.
Q: What is the consensus rating of HONDAPOWER Honda Siel Power Products Limited ?
A: The consensus rating for HONDAPOWER Honda Siel Power Products Limited is 76.
Q: What are the risks of investing HONDAPOWER Honda Siel Power Products Limited ?
A: We use risk analysis for HONDAPOWER Honda Siel Power Products Limited because of the level of the two metrics relative to the entity's credit and market risks


HONDAPOWER Honda Siel Power Products Limited

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