Harsha Engineers International Ltd. share price target

Harsha Engineers (Harsha) delivered results which surpassed our estimates. Revenue, EBITDA and PAT grew by 16%, 28% and 41% respectively on QoQ basis. The management mentioned that domestic demand trends are positive from the major bearing customers. A steady recovery in industrial demand in the European region is also taking shape which bodes positively for Harsha since it contributes 30% of overall revenue. Steady growth in the standalone entity, healthy ramp up of the Advantek subsidiary and improving operational performance of overseas subsidiaries will drive growth in the medium term. We...

We revise our FY27-28 EPS estimates by +3.1%/ +6.5% factoring in utilization improvement in Advantek and recovery in export business (ex-Romania). Harsha Engineers International (HARSHA) reported a strong quarter with a 27.1% YoY revenue increase and a sharp 606bps YoY EBITDA margin expansion to 15.5%, primarily driven by operating leverage. Management guided for double-digit consolidated revenue growth in FY27, with India Engineering expected to sustain mid-teen growth led by industrial, automotive and export demand. Export momentum improved meaningfully across Europe and the US, aided by recovery in industrial activity, lower US import...

Harsha Engineers (Harsha) delivered results in line with our estimates. Excluding the one-time new labour code impact of Rs ~60mn, the results met our expectations. Revenue, EBITDA and PAT grew by 21%, 34% and 26% respectively on YoY basis. Steady domestic demand and recovery in industrial demand in Europe led to steady growth. Growth is predominantly volume driven and not pricing driven. We believe that the company can clock in steady growth especially with better demand outlook from Europe and stable domestic demand. The management expects that revenue growth in India, improving...

Harsha Engineers (Harsha) delivered a good set of results. While Revenue grew by 7% YoY, EBITDA grew by 28% YoY to Rs535Mn. EBITDA margin also increased by 220 bps YoY to 14.1%. India Engineering business continues to be steady aided by healthy demand momentum. The most positive aspect of the result was the continued improvement in the overseas subsidiaries with steady performance in the Chinese subsidiary and a considerable improvement at Harsha Romania. Harsha Romania reported positive EBITDA post several quarters with revenue growth of 38% on YoY basis in Q2FY26.The management...

reporting a 6.4% YoY increase in revenue, although EBITDA margin contracted by 90bps YoY to 15.2%. The quarter saw signs of recovery in European demand, supporting an ~18% YoY revenue growth in the Romania operations, while demand from the US softened due to ongoing tariff-related uncertainties. commercialization of Harsha's greenfield expansion, Advantek, is expected to support domestic growth. With strong traction in the bushings segment, management anticipates ~30% YoY growth in bushing revenue and maintains a high single-digit growth guidance for the consolidated business in FY26....

Harsha Engineers (Harsha) delivered results above our estimates. Revenue, EBITDA and PAT grew by 6%, 1% and 5% respectively on YoY basis. Green shoots were seen in the way of improvement in industrial demand in Europe which led to 18% YoY revenue growth in Harsha Romania for the quarter. Harsha also witnessed healthy demand improvement for large sized cages as well. Positive signs were also seen in improving demand for bearing cages in India however auto demand remained sluggish. However the management asserted that it will take at least 2 quarters to consider this as a sustainable demand trend. The...

We believe that the continued pain in Romania may impact mid-term consolidated financial performance of the company however, HARSHA's longterm outlook remains positive given its 1) market leadership in bearing cages, 2) greenfield capacity expansion plans, and 3) multiple levers for growth viz. i) bearing cage outsourcing, ii) capex by global bearing players in India and iii) growing demand for bronze bushings. The stock is currently trading at a P/E of 23.5x/19.7x on FY26/27E earnings. We maintain Accumulate' rating with a...

We revise our FY26/27E EPS estimates by -13.1%/-8.2% factoring in continued slowdown in Romania. Harsha Engineers International (HARSHA) reported a 4.5% YoY revenue increase, with an EBITDA margin expansion of 37bps to 12.6%. Domestic demand for cages and bushings remained resilient, though key export markets, including Europe and the USA, experienced weakness, along with soft demand from Japanese customers. While China showed steady improvement, Romania's outlook remained subdued as management's efforts to optimize the product mix yielded no results. The company's long-term supply...

Issue Snapshot: Issue Open: Sept 14 Sept 16, 2022 Price Band: Rs. 314 330 (Rs.31 discount to eligible employees) *Issue Size: Rs 755.0 cr (Fresh issue of Rs 455 cr + Offer for sale of Rs 300 cr) Reservation for: QIB upto 50% eq sh Non Institutional atleast 15% eq sh ((including 1/3rd for applications between Rs.2 lakhs to Rs.10 lakhs)) Retail atleast 35% eq sh Employees Rs.2.5 cr Face Value: Rs 10 Book value: Rs 68.34 (Mar 31, 2022) Bid size: - 45 equity shares and in multiples thereof 100% Book built Issue IPO Note : Harsha Engineers International Limited

Harsha Engineers International Ltd (HEIL) incorporated on 11th December 2011, is the largest manufacturer of precision bearing cages, in terms of revenue, in organized sector in India, and amongst the leading manufacturers of precision bearing cages in the world. HEIL offers diversified suite of precision engineering products across geographies and end-user industries. It operates under