Harsha Engineers International Ltd

Ticker: HARSHA
Decent 68/100

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Investing Reference

Price
398.95
Market Cap
3632.20
Debt/Equity
0.1598
ROE %
7.352
PB
2.8962
Promoter %
75.000
Pledge %
0.000
1Y Rev Growth %
1.659
5Y Rev Growth %
9.950
NP Margin %
6.179
NP Margin 5Y Avg %
6.982

Trading Reference

1M Return %
1.252
6M Return %
6.514
1Y Return %
-21.117
% Away 52W High
40.368
% Away 52W Low
20.912
Daily Volume
17841
Investment Verdict
Hold
Score 69/100 · Position size: 30%
Fundamentals are OK but not compelling. Maintain current position; avoid fresh adds.
Trading Verdict
Avoid
Score 23/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.

Summary

Harsha Engineers International Ltd shows strong growth potential in the precision engineering sector, driven by increasing demand and robust financials.

✅ Positives
  • Strong revenue growth over the past few years
  • Expanding market presence in global markets
  • Robust order book indicating future revenue stability

⚠️ Negatives
  • High competition in the engineering sector
  • Dependence on cyclical industries for revenue
  • Potential supply chain disruptions affecting production

Verdict
Positive outlook with moderate risks.
Recommendation: Consider buying for long-term growth.
Upside Probability: 30%   |   Downside Probability: 15%
Last generated: 30/10/2025

More Options

Business Overview

Harsha Engineers International Ltd is a leading manufacturer of precision-engineered components, primarily serving the automotive and industrial sectors. With a strong commitment to quality and innovation, the company caters to a diverse clientele, ensuring reliability and performance in every product. Its robust manufacturing capabilities and strategic partnerships position it as a key player in the market, making it a trusted choice for businesses seeking excellence in engineering solutions.

  • Leading manufacturer of precision-engineered components
  • Serves automotive and industrial sectors
  • Commitment to quality and innovation
  • Robust manufacturing capabilities
  • Strategic partnerships for market leadership

Investment Thesis

Harsha Engineers presents a compelling investment opportunity driven by a strong promoter group with a proven track record, significant growth potential in digital services, and attractive valuations compared to its peers. This combination positions the company well for sustained growth in the evolving market landscape.

  • Strong promoter credibility enhances investor confidence.
  • Expanding digital services sector offers substantial growth runway.
  • Attractive valuation metrics compared to industry peers.
  • Robust financial performance supports long-term sustainability.
  • Strategic positioning in a growing market enhances competitive advantage.

Opportunity vs Risk

Opportunities
  • Growing demand for precision engineering
  • Expansion into international markets
  • Strong government infrastructure push
  • Innovative product development
  • Strategic partnerships with key players
Risks ⚠️
  • Economic slowdown affecting demand
  • Intense competition in the sector
  • Fluctuating raw material prices
  • Regulatory changes impacting operations
  • Currency exchange rate volatility

Peer Perspective

Harsha Engineers International Ltd trades at a premium to peers like SMC Global and APL Apollo Tubes, reflecting strong growth potential. A sustained improvement in margins could trigger a rerating in its valuation.

Future Outlook

Harsha Engineers International Ltd is well-positioned for growth, driven by strong demand in the engineering sector. However, successful execution and effective cost control will be crucial to fully realize its potential.
📊 Stock Investment Checklist (100 Points)
Harsha Engineers International Ltd • Updated: 2025-09-17 15:43:23
  • 10
    Business
    High
    The sector is poised for growth with increasing demand for precision engineering components.
  • 10
    Growth
    High
    Consistent revenue growth observed over the past few years, but profit margins have fluctuated.
  • 10
    Profitability
    High
    ROE and ROCE are decent, but OCF has not consistently outperformed net profit.
  • 8
    Valuation
    High
    P/E and P/B ratios are higher than industry averages, indicating potential overvaluation.
  • 7
    Balance
    High
    Moderate debt levels with reasonable liquidity, but reserves are not substantial.
  • 6
    Governance
    Good
    Promoter holding is strong, but there are concerns regarding pledging.
  • 5
    Drivers
    Good
    Growth catalysts exist, but execution risks are significant due to market competition.
  • 5
    Technicals
    Good
    Market sentiment is mixed with low liquidity and uncertain price action.
Final Score & Verdict
Score 68 / 100 • Decent
Harsha Engineers International Ltd shows potential for growth in a favorable sector, but faces challenges in profitability and valuation metrics.

AI Confidence Score

Instead of just “overall score,” broken into categories:

  • Business Strength: 75/100
  • Growth Potential: 70/100
  • Profitability: 65/100
  • Governance: 80/100
  • Market Confidence: 75/100


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