Harsha Engineers International Ltd. (HARSHA) AI Stock Analysis

• Market Cap: ₹30.98B
• Dividend Yield: 0.27%
• Average Volume (3M): 3.02K
• Price to Earnings (P/E): 25.4
• Beta (1Y): 1.28
• Revenue Growth: 3.92%
• EPS Growth: -24.95%
• Country: IN
• Employees: 1,731
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 4.00
• Shares Outstanding: 91,044,106
• 10 Day Avg. Volume: 1,712
• 30 Day Avg. Volume: 3,020
• PEG Ratio: -1.93
• Price to Book (P/B): 2.73
• Price to Sales (P/S): 2.43
• P/FCF Ratio: -1.14K
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 16.05
• Revenue Forecast (FY): ₹15.59B

• Rating: 64 Neutral
• Price Target: ₹364.00 ▼(-7.92% Downside)
• Action: Reiterated Date: 10/24/25
• Date: Action: Reiterated 10/24/25

The overall stock score of 64 reflects strong financial performance and balance sheet strength, which are offset by negative free cash flow and overvaluation concerns. The technical analysis indicates a lack of clear momentum, further contributing to a moderate score.

Positive Factors

Balance sheet strength

A 74% equity ratio and 0.16 debt/equity indicate low leverage and strong solvency. This durable capital structure gives the company flexibility to fund growth, absorb cyclical downturns in industrial and auto demand, and pursue selective investments without immediate refinancing pressure.

High gross margins & steady revenue CAGR

Sustained ~12% revenue CAGR and 47.5% gross margins reflect efficient precision manufacturing and value-added product mix. Durable margin levels imply competitive manufacturing know-how and pricing strength in bearings components, supporting long-term cash generation and reinvestment capacity.

Strong operating cash generation

Consistent operating cash flow (2.06bn) signals the core manufacturing business converts earnings into cash reliably. Over the medium term this supports working capital needs, funds ongoing capex programs, and underpins financial resilience even when free cash flow is temporarily negative from investment.

Negative Factors

Negative free cash flow

Negative free cash flow driven by heavy capex reduces liquidity available for dividends, deleveraging, or opportunistic M&A. If capex ramps remain elevated without commensurate returns, the company may need external financing or to slow investments, which could impair long-term growth plans.

Net margin compression

A drop in net margin from 8% to 6.3% signals pressure on bottom-line profitability despite strong gross margins. Persistent margin compression could reflect higher overhead, cost inflation, or mix shifts, which would reduce retained earnings and limit funding for strategic investments over the medium term.

EPS decline

Material negative EPS growth (~-17.8%) points to earnings volatility or one-time hits that weaken per-share performance. Over several quarters this can erode investor confidence and suggests management must translate capex and revenue growth into sustained profit recovery to restore durable shareholder returns.

Harsha Engineers International Ltd. Business Overview & Revenue Model

Company Description

Harsha Engineers International Limited manufactures and sells brass cages, steel cages, polyamide precision bearing cages, and stamped components in India and internationally. The company offers cylindrical roller, spherical roller, deep grove, angular contact, thrust roller, and taper roller cages. Its stamped components are used in automotive, bearing and sealing, and electrical and appliance industry. The company was formerly known as Harsha Engineers International Private Limited and changed its name to Harsha Engineers International Limited in January 2022. The company was founded in 1972 and is based in Ahmedabad, India.

How the Company Makes Money

HARSHA makes money primarily by manufacturing and selling precision bearing components—most notably bearing cages—to bearing manufacturers and other industrial customers. Revenue is generated through (1) sales of precision components (typically produced to customer specifications and quality standards) under supply arrangements with OEM and industrial clients, where earnings scale with production volumes, product mix (complexity/value-added), and long-term customer programs; and (2) other engineering products/services offered alongside its core components business (specifics not available: null). The company’s earnings are influenced by demand cycles in automotive and industrial machinery, its ability to maintain tight manufacturing tolerances and quality (which supports repeat business and qualification with large bearing customers), capacity utilization across its plants, and its customer relationships with bearing manufacturers. Any specific material partnerships, customer concentration details, pricing mechanisms, or segment-wise revenue breakdown are not available here: null.

Harsha Engineers International Ltd. Financial Statement Overview

Summary

Harsha Engineers International Ltd. demonstrates strong growth and improved financial stability. The company has effectively managed its debt levels, enhancing its balance sheet strength. While operating performance is robust, the recent negative free cash flow due to heavy capital expenditures warrants attention. Overall, the company is well-positioned in its industry, but maintaining liquidity will be crucial for sustaining growth.

Income Statement

Harsha Engineers International Ltd. shows robust revenue growth from 2021 to 2025 with a CAGR of approximately 12%. Gross profit margins have improved consistently, reaching 47.5% in 2025. However, net profit margins have slightly decreased to 6.3% in 2025 from 8% in 2024, reflecting some operational challenges. EBITDA and EBIT margins are stable, indicating strong operational efficiency in the manufacturing sector.

Balance Sheet

The company has significantly strengthened its balance sheet with an equity ratio improving to 74% in 2025, indicating a strong financial position. The debt-to-equity ratio has decreased to 0.16, reflecting reduced financial leverage and risk. Return on equity (ROE) is healthy at 7.1% in 2025, showcasing effective utilization of shareholder's equity for generating profits.

Cash Flow

Operating cash flow has shown a positive trend, increasing to 2.06 billion in 2025. However, free cash flow has turned negative due to significant capital expenditures, posing a potential risk for liquidity. The operating cash flow to net income ratio is strong, indicating good cash generation relative to reported earnings. Nonetheless, the free cash flow to net income ratio is concerning due to negative free cash flow in 2025.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	14.56B	14.08B	13.92B	13.64B	13.10B	8.64B
Gross Profit	6.92B	6.69B	6.05B	6.28B	4.40B	3.55B
EBITDA	1.98B	1.75B	2.01B	2.19B	1.87B	1.25B
Net Income	986.70M	893.10M	1.11B	1.23B	919.50M	454.39M
Balance Sheet
Total Assets	18.72B	16.91B	15.67B	14.45B	11.58B	9.81B
Cash, Cash Equivalents and Short-Term Investments	2.83B	3.18B	3.18B	2.87B	347.08M	438.47M
Total Debt	3.17B	2.00B	1.77B	1.82B	3.85B	3.57B
Total Liabilities	5.58B	4.37B	3.91B	3.73B	6.36B	5.54B
Stockholders Equity	13.14B	12.54B	11.75B	10.72B	5.22B	4.27B
Cash Flow
Free Cash Flow	-864.50M	-30.00M	653.30M	562.60M	-130.55M	813.68M
Operating Cash Flow	-180.30M	2.06B	1.40B	1.33B	364.74M	1.21B
Investing Cash Flow	-810.70M	-2.12B	-1.73B	-3.08B	-518.30M	-199.60M
Financing Cash Flow	1.03B	59.10M	-146.60M	2.16B	37.26M	-924.28M

Harsha Engineers International Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 395.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HARSHA, the sentiment is Negative. The current price of 395.3 is above the 20-day moving average (MA) of 364.62, above the 50-day MA of 376.42, and above the 200-day MA of 392.86, indicating a bearish trend. The MACD of -8.83 indicates Positive momentum. The RSI at 29.72 is Positive, neither overbought nor oversold. The STOCH value of 18.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:HARSHA.

Harsha Engineers International Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TIMKEN	66 Neutral	₹251.63B	103.51	―	1.18%	4.81%	15.08%
HARSHA	64 Neutral	₹30.98B	25.44	―	0.27%	3.92%	-24.95%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SKFINDIA	60 Neutral	₹77.54B	36.90	―	0.39%	6.65%	-4.29%
WENDT	59 Neutral	₹13.38B	130.82	―	0.62%	―	―
RKFORGE	54 Neutral	₹98.06B	174.30	―	0.38%	-4.73%	-19.52%
NIBL	50 Neutral	₹726.92M	-2.06	―	―	―	―

Harsha Engineers International Ltd. Corporate Events

Harsha Engineers Posts Investor Call Recording on December 2025 Results

Harsha Engineers International Limited has released the audio recording of its analysts and investors conference call discussing the unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025. The results, which were approved by the board on 5 February 2026, are now accompanied by this recording made accessible via the company’s investor relations webpage, enhancing disclosure and transparency for shareholders and market participants.