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Last Updated on: 22 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 543600 | NSE: HARSHA

Harsha Engineers International Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 8:27 pm

Market Cap 4,355 Cr.
Current Price 478
High / Low614/360
Stock P/E31.4
Book Value 143
Dividend Yield0.21 %
ROCE13.4 %
ROE10.6 %
Face Value 10.0
PEG Ratio2.18

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Harsha Engineers International Ltd

Competitors of Harsha Engineers International Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Hawkins Cookers Ltd 4,512 Cr. 8,5299,099/5,81040.0 6221.41 %44.5 %36.0 % 10.0
Harsha Engineers International Ltd 4,355 Cr. 478614/36031.4 1430.21 %13.4 %10.6 % 10.0
Gorani Industries Ltd 56.2 Cr. 105160/86.877.1 23.50.00 %12.2 %11.5 % 10.0
Eureka Forbes Ltd 10,906 Cr. 568644/39783.7 2220.00 %3.46 %2.45 % 10.0
V-Guard Industries Ltd 17,951 Cr. 414577/28369.1 42.70.34 %16.1 %13.8 % 1.00
Industry Average10,976.60 Cr1,724.5573.95189.380.41%14.59%11.60%6.09

All Competitor Stocks of Harsha Engineers International Ltd

Quarterly Result

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales232232276308242226248256268259298258
Expenses194190227265197189197215228221246206
Operating Profit394249434537504140385152
OPM %17%18%18%14%19%16%20%16%15%15%17%20%
Other Income23775136671178
Interest665551121222
Depreciation555666667777
Profit before tax303446414043493939405052
Tax %26%27%26%25%25%26%25%23%24%25%25%25%
Net Profit232534303032373030303839
EPS in Rs4.523.234.423.933.263.474.043.273.253.294.134.24

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales954441226015829561,0251,0811,083
Expenses101436136536491790848911902
Operating Profit-68-156492166176170181
OPM %-6%2%-12%11%16%17%17%16%17%
Other Income87116418313033
Interest28113027211266
Depreciation000201720232727
Profit before tax-17-253051143172168181
Tax %-2%0%-30%33%26%26%25%24%
Net Profit-17-172038106128127136
EPS in Rs-0.463.28-8.624.027.6013.7314.1013.9414.91
Dividend Payout %0%0%0%0%0%0%7%7%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)800.00%-342.86%217.65%90.00%178.95%20.75%-0.78%
Change in YoY Net Profit Growth (%)0.00%-1142.86%560.50%-127.65%88.95%-158.19%-21.54%

Harsha Engineers International Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 7 years from 2017-2018 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:%
5 Years:55%
3 Years:23%
TTM:9%
Compounded Profit Growth
10 Years:%
5 Years:56%
3 Years:49%
TTM:9%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:%
1 Year:22%
Return on Equity
10 Years:%
5 Years:13%
3 Years:14%
Last Year:11%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 2:34 pm

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital202020505077919191
Reserves29-83674114911,0331,1541,213
Borrowings271671223192522909010280
Other Liabilities3725583170169204141181177
Total Liabilities864512169078811,0621,3551,5291,561
Fixed Assets011179181204239251261
CWIP0002321170
Investments1297185188211399515573
Other Assets74441209541509645706757726
Total Assets864512169078811,0621,3551,5291,561

Reserves and Borrowings Chart

Cash Flow

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +27-107298410351119124
Cash from Investing Activity +-6-1315-380-75-306-162
Cash from Financing Activity +-21132-56-34-9514223-3
Net Cash Flow-012-11138-936-41

Free Cash Flow

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-33.00-159.00-137.00-255.00-160.00-124.0086.0068.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days215257427120103827891
Inventory Days83241200263209197180
Days Payable1802362491061261015066
Cash Conversion Cycle4353219213240189225204
Working Capital Days111122313180185151154159
ROCE %12%-8%14%11%21%18%13%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters74.61%74.61%74.61%74.61%74.61%74.61%74.61%74.61%74.61%
FIIs3.84%4.07%3.74%1.81%1.86%1.61%1.61%0.76%0.56%
DIIs9.04%11.06%11.37%10.02%9.19%8.14%7.43%8.69%8.85%
Public12.52%10.27%10.27%13.56%14.33%15.62%16.36%15.92%15.98%
No. of Shareholders1,64,5361,32,8921,22,8431,05,01199,27496,52891,10778,30779,500

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Nippon India Small Cap Fund4,136,8640.37223.06305,8482024-11-201252.59%
DSP Small Cap Fund2,374,3320.77128.02305,8482024-11-20676.31%
Nippon India Flexi Cap Fund902,8400.5848.68305,8482024-11-20195.19%
L&T Focused Equity Fund305,8481.2912.21305,8482024-11-200%
Nippon India Capital Builder Fund IV - Series B15,3301.140.59305,8482024-11-20-94.99%

ROCE / ROE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)12.2414.5916.069.096.26
Diluted EPS (Rs.)12.2414.5911.905.883.52
Cash EPS (Rs.)16.5617.5116.4815.9111.43
Book Value[Excl.RevalReserv]/Share (Rs.)129.09117.7267.5685.4474.40
Book Value[Incl.RevalReserv]/Share (Rs.)129.09117.7267.5685.4474.40
Revenue From Operations / Share (Rs.)152.93149.83171.07174.75177.17
PBDIT / Share (Rs.)22.0624.0624.1524.9619.93
PBIT / Share (Rs.)17.7420.1019.5718.1412.88
PBT / Share (Rs.)16.5618.3616.3912.146.32
Net Profit / Share (Rs.)12.2413.5411.909.094.38
NP After MI And SOA / Share (Rs.)12.2413.5411.909.094.38
PBDIT Margin (%)14.4216.0614.1114.2811.24
PBIT Margin (%)11.6013.4111.4410.387.26
PBT Margin (%)10.8212.259.586.943.56
Net Profit Margin (%)8.009.036.955.202.47
NP After MI And SOA Margin (%)8.009.036.955.202.47
Return on Networth / Equity (%)9.4811.5017.6110.635.88
Return on Capital Employeed (%)13.4416.6022.1516.4912.88
Return On Assets (%)7.118.537.934.632.25
Long Term Debt / Equity (X)0.000.010.260.230.34
Total Debt / Equity (X)0.140.160.720.811.11
Asset Turnover Ratio (%)0.921.050.000.620.00
Current Ratio (X)2.912.901.641.431.30
Quick Ratio (X)1.941.810.840.810.81
Inventory Turnover Ratio (X)2.131.950.001.370.00
Dividend Payout Ratio (NP) (%)8.170.000.000.000.00
Dividend Payout Ratio (CP) (%)6.040.000.000.000.00
Earning Retention Ratio (%)91.830.000.000.000.00
Cash Earning Retention Ratio (%)93.960.000.000.000.00
Interest Coverage Ratio (X)18.6513.837.604.163.04
Interest Coverage Ratio (Post Tax) (X)11.358.784.742.511.67
Enterprise Value (Cr.)3698.783094.100.000.000.00
EV / Net Operating Revenue (X)2.662.270.000.000.00
EV / EBITDA (X)18.4214.120.000.000.00
MarketCap / Net Operating Revenue (X)2.622.240.000.000.00
Retention Ratios (%)91.820.000.000.000.00
Price / BV (X)3.102.850.000.000.00
Price / Net Operating Revenue (X)2.622.240.000.000.00
EarningsYield0.030.040.000.000.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Harsha Engineers International Ltd as of November 22, 2024 is: 476.96

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 22, 2024, Harsha Engineers International Ltd is Overvalued by 0.22% compared to the current share price 478.00

Intrinsic Value of Harsha Engineers International Ltd as of November 22, 2024 is: 545.78

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 22, 2024, Harsha Engineers International Ltd is Undervalued by 14.18% compared to the current share price 478.00

Last 5 Year EPS CAGR: 14.43%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (519.11 cr) compared to borrowings (161.00 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (311.44 cr) and profit (80.67 cr) over the years.
  1. The stock has a low average ROCE of 10.13%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 171.88, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 173.25, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Harsha Engineers International Ltd:
    1. Net Profit Margin: 8%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 13.44% (Industry Average ROCE: 14.59%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 9.48% (Industry Average ROE: 11.6%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 11.35
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.94
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 31.4 (Industry average Stock P/E: 73.95)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.14
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Harsha Engineers International Ltd. is a Public Limited Listed company incorporated on 11/12/2010 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is U29307GJ2010PLC063233 and registration number is 063233. Currently Company is involved in the business activities of Electric power generation, transmission and distribution. Company’s Total Operating Revenue is Rs. 582.04 Cr. and Equity Capital is Rs. 50.00 Cr. for the Year ended 31/03/2021.
INDUSTRYADDRESSCONTACT
Domestic AppliancesNH-8A, Sarkhej-Bavla Highway, Ahmedabad Gujarat 382213sec@harshaengineers.com
http://www.harshaengineers.com
Management
NamePosition Held
Mr. Rajendra ShahChairman & Wholetime Director
Mr. Harish RangwalaManaging Director
Mr. Vishal RangwalaWholeTime Director & CEO
Mr. Pilak ShahWhole Time Director & COO
Ms. Hetal UkaniWhole Time Director
Mr. Ambar PatelIndependent Director
Prof. (Dr) Neharika VohraIndependent Director
Mr. Kunal ShahIndependent Director
Dr. Bhushan PunaniIndependent Director
Mr. Ramakrishnan KasinathanIndependent Director

FAQ

What is the latest intrinsic value of Harsha Engineers International Ltd?

The latest intrinsic value of Harsha Engineers International Ltd as on 21 November 2024 is ₹476.96, which is 0.22% lower than the current market price of ₹478.00.

What is the Market Cap of Harsha Engineers International Ltd?

The Market Cap of Harsha Engineers International Ltd is 4,355 Cr..

What is the current Stock Price of Harsha Engineers International Ltd as on 21 November 2024?

The current stock price of Harsha Engineers International Ltd as on 21 November 2024 is ₹478.

What is the High / Low of Harsha Engineers International Ltd stocks in FY 2024?

In FY 2024, the High / Low of Harsha Engineers International Ltd stocks is 614/360.

What is the Stock P/E of Harsha Engineers International Ltd?

The Stock P/E of Harsha Engineers International Ltd is 31.4.

What is the Book Value of Harsha Engineers International Ltd?

The Book Value of Harsha Engineers International Ltd is 143.

What is the Dividend Yield of Harsha Engineers International Ltd?

The Dividend Yield of Harsha Engineers International Ltd is 0.21 %.

What is the ROCE of Harsha Engineers International Ltd?

The ROCE of Harsha Engineers International Ltd is 13.4 %.

What is the ROE of Harsha Engineers International Ltd?

The ROE of Harsha Engineers International Ltd is 10.6 %.

What is the Face Value of Harsha Engineers International Ltd?

The Face Value of Harsha Engineers International Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Harsha Engineers International Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE