BSE: 543600 | NSE: HARSHA | Engineering - Industrial Equipments | Small Cap
Past 10 year's financial track record analysis by Moneyworks4me indicates that Harsha Engineers International Ltd is a average quality company.
The key valuation ratios of Harsha Engineers International Ltd's currently when compared to its past seem to suggest it is in the Somewhat overvalued zone.
The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Harsha Engineers International Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.
| Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 | TTM | |
|---|---|---|---|---|---|---|
| ROCE % ⓘ | 8.2% | 10.8% | 20.9% | 17.8% | 13.6% | - |
| Value Creation Index ⓘ | -0.4 | -0.2 | 0.5 | 0.3 | 0.0 | - |
Growth Parameters ⓘGrowth Parameters Colour Code Guide ⓘ | ||||||
| Sales ⓘ | 601 | 582 | 956 | 1,025 | 1,081 | 1,087 |
| Sales YoY Gr. | - | -3.1% | 64.3% | 7.1% | 5.5% | - |
| Adj EPS ⓘ | 2.5 | 7.6 | 12.4 | 12.6 | 13.5 | 15.3 |
| YoY Gr. | - | 204.4% | 63.7% | 1.5% | 7.3% | - |
| BVPS (₹) ⓘ | 78 | 86.7 | 73.5 | 123.4 | 136.8 | 143.3 |
| Adj Net Profit ⓘ | 12.5 | 37.9 | 95.9 | 115 | 123 | 139 |
| Cash Flow from Ops. ⓘ | 84.1 | 103 | 50.9 | 119 | 124 | - |
| Debt/CF from Ops. ⓘ | 3.8 | 2.5 | 5.7 | 0.7 | 0.8 | - |
CAGR Colour Code Guide ⓘ
| 9 Years | 5 Years | 3 Years | 1 Years | |||||
|---|---|---|---|---|---|---|---|---|
| Sales ⓘ | NA | NA | 22.9% | 5.5% | ||||
| Adj EPS ⓘ | NA | NA | 21.3% | 7.3% | ||||
| BVPSⓘ | NA | NA | 16.4% | 10.8% | ||||
| Share Price | - | - | - | 21% | ||||
Performance Ratio Colour Code Guide ⓘ
| Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 | TTM | |
|---|---|---|---|---|---|---|
| Return on Equity % ⓘ | 3 | 8.6 | 18.7 | 13.6 | 10.4 | 10.9 |
| Op. Profit Mgn % ⓘ | 9.5 | 15.8 | 17.3 | 16.9 | 15.5 | 16.8 |
| Net Profit Mgn % ⓘ | 2.1 | 6.5 | 10 | 11.2 | 11.4 | 12.8 |
| Debt to Equity ⓘ | 0.8 | 0.6 | 0.5 | 0.1 | 0.1 | 0 |
| Working Cap Days ⓘ | 0 | 300 | 207 | 213 | 210 | 143 |
| Cash Conv. Cycle ⓘ | 0 | 162 | 115 | 134 | 145 | 105 |
Sales growth is growing at healthy rate in last 3 years 22.92%
Net Profit is growing at healthy rate in last 3 years 21.27%
Return on Equity has declined versus last 3 years average to 10.90%
Sales growth is not so good in last 4 quarters at 9.15%
| Standalone | Consolidated | |
|---|---|---|
| TTM EPS (₹) | 15.3 | 14.4 |
| TTM Sales (₹ Cr.) | 1,087 | 1,401 |
| BVPS (₹.) ⓘ | 143.3 | 135 |
| Reserves (₹ Cr.) ⓘ | 1,213 | 1,139 |
| P/BV ⓘ | 3.35 | 3.56 |
| PE ⓘ | 31.50 | 33.28 |
| From the Market | |
|---|---|
| 52 Week Low / High (₹) | 360.00 / 610.75 |
| All Time Low / High (₹) | 309.00 / 610.75 |
| Market Cap (₹ Cr.) | 4,376 |
| Equity (₹ Cr.) | 91 |
| Face Value (₹) | 10 |
| Industry PE ⓘ | 57.5 |
| Pledged * | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| PARTICULARS | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|
| Sales | 601 | 582 | 956 | 1,025 | 1,081 |
| Operating Expenses ⓘ | 544 | 494 | 791 | 852 | 914 |
| Manufacturing Costs | 79 | 75 | 114 | 129 | 141 |
| Material Costs | 314 | 274 | 512 | 540 | 588 |
| Employee Cost | 90 | 90 | 96 | 109 | 118 |
| Other Costs ⓘ | 60 | 56 | 69 | 74 | 66 |
| Operating Profit ⓘ | 57 | 88 | 166 | 172 | 167 |
| Operating Profit Margin (%) | 9.5% | 15.1% | 17.3% | 16.8% | 15.5% |
| Other Income ⓘ | 23 | 8 | 18 | 35 | 34 |
| Interest ⓘ | 30 | 27 | 21 | 12 | 6 |
| Depreciation ⓘ | 20 | 17 | 20 | 23 | 27 |
| Exceptional Items ⓘ | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax ⓘ | 30 | 51 | 143 | 172 | 168 |
| Tax ⓘ | 10 | 13 | 37 | 44 | 41 |
| Profit After Tax | 20 | 38 | 106 | 128 | 127 |
| PAT Margin (%) | 3.3% | 6.5% | 11.1% | 12.5% | 11.7% |
| Adjusted EPS (₹) | 4.0 | 7.6 | 13.7 | 14.1 | 13.9 |
| Dividend Payout Ratio (%) | 42% | 0% | 0% | 7% | 7% |
| PARTICULARS | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 | |||||
|---|---|---|---|---|---|---|---|---|---|---|
Equity and Liabilities | ||||||||||
| Shareholders Fund | 390 | 433 | 568 | 1,124 | 1,245 | |||||
| Share Capital ⓘ | 50 | 50 | 77 | 91 | 91 | |||||
| Reserves ⓘ | 340 | 383 | 491 | 1,033 | 1,154 | |||||
| Minority Interest | 0 | 0 | 0 | 0 | 0 | |||||
| Debt | 283 | 229 | 250 | 88 | 100 | |||||
| Long Term Debt | 93 | 86 | 126 | 0 | 1 | |||||
| Short Term Debt | 190 | 143 | 124 | 88 | 98 | |||||
| Trade Payables | 92 | 94 | 142 | 73 | 106 | |||||
| Others Liabilities ⓘ | 131 | 126 | 102 | 70 | 78 | |||||
| Total Liabilities ⓘ | 896 | 882 | 1,062 | 1,355 | 1,529 | |||||
Fixed Assets | ||||||||||
| Gross Block | 387 | 403 | 444 | 495 | 531 | |||||
| Accumulated Depreciation | 208 | 222 | 239 | 256 | 281 | |||||
| Net Fixed Assetsⓘ | 179 | 181 | 204 | 239 | 251 | |||||
| CWIP ⓘ | 2 | 3 | 2 | 11 | 7 | |||||
| Investmentsⓘ | 185 | 188 | 211 | 399 | 515 | |||||
| Inventories | 172 | 197 | 293 | 291 | 289 | |||||
| Trade Receivables | 197 | 165 | 214 | 219 | 269 | |||||
| Cash Equivalents | 49 | 36 | 32 | 121 | 97 | |||||
| Others Assetsⓘ | 112 | 113 | 106 | 75 | 102 | |||||
| Total Assets ⓘ | 896 | 882 | 1,062 | 1,355 | 1,529 | |||||
| PARTICULARS | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|
| Cash Flow From Operating Activity ⓘ | 84 | 103 | 51 | 119 | 124 |
| PBT ⓘ | 30 | 51 | 143 | 172 | 168 |
| Adjustment ⓘ | 48 | 41 | 39 | 20 | 7 |
| Changes in Working Capital ⓘ | 19 | 11 | -100 | -36 | -14 |
| Tax Paid ⓘ | -13 | -1 | -31 | -37 | -36 |
| Cash Flow From Investing Activity ⓘ | -38 | 0 | -75 | -306 | -162 |
| Capex | -51 | -21 | -42 | -68 | -35 |
| Net Investments | 1 | 18 | -28 | -242 | -144 |
| Others ⓘ | 12 | 3 | -5 | 3 | 16 |
| Cash Flow From Financing Activityⓘ | -34 | -95 | 14 | 223 | -3 |
| Net Proceeds from Shares ⓘ | 0 | 0 | 0 | 434 | 0 |
| Net Proceeds from Borrowing ⓘ | 0 | 0 | 0 | -126 | 1 |
| Interest Paid ⓘ | -30 | -27 | -21 | -12 | -6 |
| Dividend Paid ⓘ | -8 | 0 | 0 | 0 | -9 |
| Others ⓘ | 5 | -68 | 35 | -74 | 11 |
| Net Cash Flow ⓘ | 13 | 8 | -9 | 35 | -41 |
| PARTICULARS | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| Ratios | ||||||||||
| ROE (%) | 5.15 | 9.22 | 21.19 | 15.18 | 10.71 | |||||
| ROCE (%) | 8.17 | 10.76 | 20.93 | 17.82 | 13.61 | |||||
| Asset Turnover Ratio | 0.67 | 0.65 | 0.98 | 0.85 | 0.75 | |||||
| PAT to CFO Conversion(x) | 4.2 | 2.71 | 0.48 | 0.93 | 0.98 | Working Capital Days | ||||
| Receivable Days | 120 | 113 | 72 | 77 | 82 | |||||
| Inventory Days | 104 | 116 | 93 | 104 | 98 | |||||
| Payable Days | 106 | 124 | 84 | 73 | 56 | |||||
The Company (formerly known as Harsha Engineers International Private Limited and Harsha Abakus Solar Private Limited) was incorporated as a private limited company under the provisions of the Companies Act, 1956 pursuant to a certificate of incorporation dated December 11, 2010, issued by the Registrar of Companies, Gujarat, Dadra and Nagar Havelli at Ahmedabad (RoC).Subsequently, the Company’s name was changed to Harsha Engineers International Private Limited pursuant to a composite scheme of amalgamation and arrangement approved by Hon’ble National Company Law Tribunal, Ahmedabad Bench vide order dated December 23, 2021 and a fresh certificate of incorporation consequent to name change was issued by the RoC, on December 31, 2021. The Company was also converted into a public limited company and the name of the Company was changed to Harsha Engineers International Limited. A fresh certificate of incorporation consequent upon conversion from private to public company was issued by the RoC, on January 1, 2022.
Harsha Engineers International is the largest manufacturer of precision bearing cages, in terms of revenue, in organised sector in India, and amongst the leading manufacturers of precision bearing cages in the world. It offers diversified suite of precision engineering products across geographies and end-user industries. The company has approximately 50-60% of the market share in the organised segment of the Indian bearing cages market and 6.5% of the market share in the global organised bearing cages market for brass, steel and polyamide cages in CY 2021. It offers a wide range of bearing cages starting from 20 mm to 2,000 mm in diameter and its bearing cages find its application in the automotive, railways, aviation & aerospace, construction, mining, agriculture, electrical and electronics, renewables sectors etc. The company is a technology driven company with a strong focus on quality, design and tool development, which has allowed it to develop products suited to its customers’ requirements. It has the expertise to design and develop advance tooling in-house which enables it to manufacture precision bearing cages and complex and specialised precision stamped components. Bearing cages are critical parts of a bearings and it requires high precision technology to manufacture them.
The company, which housed a team of 253 qualified engineers (including solar EPC business) as of March 31, 2022, along with its decades of experience in bearing cages engineering, enables it to develop specialized products and solutions. Its ability to develop products suited to its customers’ requirements has fostered strong and long term customer relationship which in turn has helped it gain higher margins for its products and better navigate competition. Further, it has been successful in diversifying its product portfolio and improves its current processes in different types of bearing cages mainly due to its design, development and technological capabilities. The company is also an EPC service provider in the solar photovoltaic industry and also provides operations and maintenance services in the solar sector. It has over 10 years of operating history in the solar EPC business. It has an in-house design, engineering, procurement, project management and O&M team which has a combined experience of installing at least 500 MW and more than 60 MW commissioning experience in roof top segment as of March 31, 2022.
Business area of the company
The company’s business comprises: (i) engineering business, under which it manufactures bearing cages (in brass, steel and polyamide materials), complex and specialised precision stamped components, welded assemblies and brass castings and cages & bronze bushings; and (ii) solar EPC business, under which it provides complete comprehensive turnkey solutions to all solar photovoltaic requirements.
Key awards, accreditations or recognitions
Major events and milestones
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MoneyWorks4Me rates and ranks mutual funds based on the following data-driven system:
Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
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