Harsha Engineers International Ltd. (HARSHA) AI Stock Analysis

• Market Cap: ₹34.66B
• Dividend Yield: 0.27%
• Average Volume (3M): 3.02K
• Price to Earnings (P/E): 35.1
• Beta (1Y): 1.29
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ₹432.00 ▲(9.28% Upside)

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 strong balance sheet with a high equity ratio indicates financial stability, reducing risk and enhancing the company's ability to invest in growth opportunities.

Revenue Growth

Consistent revenue growth demonstrates the company's ability to expand its market reach and maintain competitive positioning, supporting long-term business sustainability.

Operational Efficiency

Stable EBITDA and EBIT margins reflect effective cost management and operational efficiency, which are crucial for maintaining profitability in a competitive industry.

Negative Factors

Negative Free Cash Flow

Negative free cash flow can strain liquidity, limiting the company's ability to fund operations and growth initiatives without relying on external financing.

Declining Net Profit Margins

A decline in net profit margins suggests potential operational challenges, which could impact the company's profitability and ability to reinvest in the business.

EPS Decline

A significant decline in EPS growth can indicate challenges in maintaining profitability, potentially affecting investor confidence and the company's ability to attract capital.

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 Engineers International Ltd. generates revenue primarily through the sale of its precision-engineered bearings and related components. The company operates on a B2B model, supplying its products to various industries, including automotive manufacturers, industrial machinery producers, and consumer goods companies. Key revenue streams include direct sales to OEMs (Original Equipment Manufacturers) and aftermarket sales. Additionally, the company benefits from strategic partnerships with key industry players, enhancing its distribution capabilities and market reach. Factors contributing to its earnings include its robust product portfolio, strong brand reputation, and expanding global presence, which allows it to tap into emerging markets and increasing demand for high-quality bearings.

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 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	14.30B	14.08B	13.92B	13.64B	13.10B	8.64B
Gross Profit	6.72B	6.69B	6.05B	6.28B	4.40B	3.55B
EBITDA	1.88B	1.75B	2.01B	2.19B	1.87B	1.25B
Net Income	911.90M	893.10M	1.11B	1.23B	919.50M	454.39M
Balance Sheet
Total Assets	0.00	16.91B	15.67B	14.45B	11.58B	9.81B
Cash, Cash Equivalents and Short-Term Investments	3.18B	3.18B	3.18B	2.87B	347.08M	438.47M
Total Debt	0.00	2.00B	1.77B	1.82B	3.85B	3.57B
Total Liabilities	-12.54B	4.37B	3.91B	3.73B	6.36B	5.54B
Stockholders Equity	12.54B	12.54B	11.75B	10.72B	5.22B	4.27B
Cash Flow
Free Cash Flow	0.00	-30.00M	653.30M	562.60M	-130.55M	813.68M
Operating Cash Flow	0.00	2.06B	1.40B	1.33B	364.74M	1.21B
Investing Cash Flow	0.00	-2.12B	-1.73B	-3.08B	-518.30M	-199.60M
Financing Cash Flow	0.00	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: Negative
• 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 Negative. The current price of 395.3 is above the 20-day moving average (MA) of 380.14, above the 50-day MA of 385.20, and above the 200-day MA of 394.33, indicating a neutral trend. The MACD of 2.04 indicates Negative momentum. The RSI at 47.75 is Neutral, neither overbought nor oversold. The STOCH value of 68.07 is Neutral, 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	₹221.71B	48.75	―	1.18%	4.81%	15.08%
HARSHA	64 Neutral	₹34.66B	35.12	―	0.27%	3.92%	-24.95%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SKFINDIA	60 Neutral	₹90.25B	16.82	―	0.39%	6.65%	-4.29%
WENDT	59 Neutral	₹14.81B	53.69	―	0.62%	―	―
RKFORGE	54 Neutral	₹90.71B	30.02	―	0.38%	-4.73%	-19.52%
NIBL	50 Neutral	₹784.83M	3.54	―	―	―	―

Harsha Engineers International Ltd. Corporate Events

Harsha Engineers Releases Q2 2025 Financial Results

Harsha Engineers International Ltd. announced the approval of its unaudited standalone and consolidated financial results for the quarter and half-year ending September 30, 2025. These results were published in major newspapers and are accessible on the company’s website, reflecting transparency and compliance with SEBI regulations. This announcement underscores the company’s commitment to maintaining clear communication with stakeholders and adhering to financial disclosure norms, potentially impacting investor confidence and market positioning.