Harsha Engineers International Ltd. (HARSHA) AI Stock Analysis

• Market Cap: ₹36.75B
• Dividend Yield: 0.25%
• Average Volume (3M): 15.06K
• Price to Earnings (P/E): 40.3
• Beta (1Y): 1.16
• Revenue Growth: 3.05%
• EPS Growth: -25.80%
• Country: IN
• Employees: 1,731
• Sector: Industrials
• Sector Strength: 74
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 4.10
• Shares Outstanding: 91,044,106
• 10 Day Avg. Volume: 3,066
• 30 Day Avg. Volume: 15,057
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹426.00
• Price Target Upside: 4.99% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: ₹426.00 ▲(4.99% Upside)

The overall stock score is driven primarily by strong financial performance, particularly in revenue growth and balance sheet strength. However, technical indicators and valuation concerns, such as bearish momentum and high P/E ratio, weigh down the score. The lack of earnings call and corporate events data limits further insights.

Harsha Engineers International Ltd. Business Overview & Revenue Model

Company Description

Harsha Engineers International Ltd. (HARSHA) is a prominent engineering company specializing in the manufacturing of precision bearing cages, which are critical components used in a wide range of applications including automotive, industrial, and aerospace sectors. The company is recognized for its advanced production capabilities, innovative engineering solutions, and commitment to quality, making it a trusted partner for global clients seeking reliable and efficient bearing solutions.

How the Company Makes Money

Harsha Engineers International Ltd. generates revenue primarily through the production and sale of precision bearing cages. The company's revenue model is centered around its manufacturing operations, where it leverages state-of-the-art technology and engineering expertise to produce high-quality bearing components. These components are sold to a diverse clientele across various industries, including automotive, industrial machinery, and aerospace, which require durable and reliable bearing solutions. Additionally, HARSHA may benefit from long-term contracts and partnerships with major bearing manufacturers and distributors who rely on its products for their operations. The company's focus on innovation and quality assurance also plays a significant role in maintaining client relationships and driving sales growth.

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	Dec 2025	Dec 2023	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	14.08B	14.08B	13.64B	13.92B	13.10B	8.64B
Gross Profit	6.12B	6.69B	6.28B	6.05B	4.40B	3.55B
EBITDA	1.77B	1.75B	2.19B	2.01B	1.87B	1.25B
Net Income	893.10M	893.10M	1.23B	1.11B	919.50M	454.39M
Balance Sheet
Total Assets	16.91B	16.91B	14.45B	15.67B	11.58B	9.81B
Cash, Cash Equivalents and Short-Term Investments	3.18B	3.18B	2.95B	3.20B	347.08M	438.47M
Total Debt	2.00B	2.00B	1.82B	1.77B	3.85B	3.57B
Total Liabilities	4.37B	4.37B	3.73B	3.91B	6.36B	5.54B
Stockholders Equity	12.54B	12.54B	10.72B	11.75B	5.22B	4.27B
Cash Flow
Free Cash Flow	0.00	-30.00M	562.60M	653.30M	-130.55M	813.68M
Operating Cash Flow	0.00	2.06B	1.33B	1.40B	364.74M	1.21B
Investing Cash Flow	0.00	-2.12B	-3.08B	-1.73B	-518.30M	-199.60M
Financing Cash Flow	0.00	59.10M	2.16B	-146.60M	37.26M	-924.28M

Harsha Engineers International Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 405.75
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HARSHA, the sentiment is Neutral. The current price of 405.75 is below the 20-day moving average (MA) of 407.84, below the 50-day MA of 409.65, and below the 200-day MA of 417.48, indicating a bearish trend. The MACD of -1.42 indicates Positive momentum. The RSI at 48.31 is Neutral, neither overbought nor oversold. The STOCH value of 46.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
Sector *	64 Neutral	$10.75B	15.58	7.24%	2.01%	2.80%	-14.32%
HARSHA	60 Neutral	₹36.75B	40.30		0.25%	3.05%	-25.80%
NIBL	―	₹654.23M	2.87		―	―	―
SKFINDIA	67 Neutral	₹241.22B	45.93		0.29%	7.99%	-5.59%
TIMKEN	63 Neutral	₹216.49B	47.55		1.25%	6.63%	14.31%
RKFORGE	51 Neutral	₹103.32B	24.53		0.34%	0.55%	17.34%
WENDT	―	₹19.73B	55.46		0.51%	―	―

Harsha Engineers International Ltd. Corporate Events

Harsha Engineers Announces Dividend and Tax Deduction Details

Harsha Engineers International Limited has announced a dividend of Rs. 1 per equity share for the financial year ending March 31, 2025. Following the Finance Act, 2020, dividend income is taxable in the hands of shareholders, and the company will deduct tax at source (TDS) based on the applicable rates and shareholder classification. This communication aims to inform shareholders about the tax deduction process and is available on the company’s website.