Harsha Engineers International Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 21, 2024, 12:50 am

Market Cap	4,560 Cr.
Current Price	501
High / Low	614/360
Stock P/E	32.8
Book Value	143
Dividend Yield	0.20 %
ROCE	13.4 %
ROE	10.6 %
Face Value	10.0
PEG Ratio	2.19

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

Stock P/E Current Price Intrinsic Value

View Share Price Target for

Competitors of

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
Hawkins Cookers Ltd	4,736 Cr.	8,952	9,100/5,810	41.9	622	1.34 %	44.5 %	36.0 %	10.0
Harsha Engineers International Ltd	4,560 Cr.	501	614/360	32.8	143	0.20 %	13.4 %	10.6 %	10.0
Gorani Industries Ltd	56.8 Cr.	106	160/86.8	77.8	23.5	0.00 %	12.2 %	11.5 %	10.0
Eureka Forbes Ltd	11,066 Cr.	572	648/397	84.9	222	0.00 %	3.46 %	2.45 %	10.0
V-Guard Industries Ltd	18,094 Cr.	416	577/283	69.6	42.7	0.34 %	16.1 %	13.8 %	1.00
Industry Average	10,646.82 Cr	1,734.58		74.88	189.85	0.37%	14.18%	11.15%	6.42

All Competitor Stocks of

Quarterly Result

Month	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024
Sales	232	232	276	308	242	226	248	256	268	259	298	258	272
Expenses	194	190	227	265	197	189	197	215	228	221	246	206	231
Operating Profit	39	42	49	43	45	37	50	41	40	38	51	52	41
OPM %	17%	18%	18%	14%	19%	16%	20%	16%	15%	15%	17%	20%	15%
Other Income	2	3	7	7	5	13	6	6	7	11	7	8	11
Interest	6	6	5	5	5	1	1	2	1	2	2	2	1
Depreciation	5	5	5	6	6	6	6	6	7	7	7	7	7
Profit before tax	30	34	46	41	40	43	49	39	39	40	50	52	44
Tax %	26%	27%	26%	25%	25%	26%	25%	23%	24%	25%	25%	25%	26%
Net Profit	23	25	34	30	30	32	37	30	30	30	38	39	33
EPS in Rs	4.52	3.23	4.42	3.93	3.26	3.47	4.04	3.27	3.25	3.29	4.13	4.24	3.60

Last Updated: November 27, 2024, 3:55 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: November 27, 2024, 3:55 pm

Month	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	TTM
Sales	95	444	122	601	582	956	1,025	1,081	1,087
Expenses	101	436	136	536	491	790	848	911	904
Operating Profit	-6	8	-15	64	92	166	176	170	182
OPM %	-6%	2%	-12%	11%	16%	17%	17%	16%	17%
Other Income	8	7	1	16	4	18	31	30	38
Interest	2	8	11	30	27	21	12	6	6
Depreciation	0	0	0	20	17	20	23	27	28
Profit before tax	-1	7	-25	30	51	143	172	168	186
Tax %	-2%	0%	-30%	33%	26%	26%	25%	24%
Net Profit	-1	7	-17	20	38	106	128	127	139
EPS in Rs	-0.46	3.28	-8.62	4.02	7.60	13.73	14.10	13.94	15.26
Dividend Payout %	0%	0%	0%	0%	0%	0%	7%	7%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2017-2018	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024
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%

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:	28%

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

Month	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Sep 2024
Equity Capital	20	20	20	50	50	77	91	91	91
Reserves	2	9	-8	367	411	491	1,033	1,154	1,213
Borrowings	27	167	122	319	252	290	90	102	80
Other Liabilities	37	255	83	170	169	204	141	181	177
Total Liabilities	86	451	216	907	881	1,062	1,355	1,529	1,561
Fixed Assets	0	1	1	179	181	204	239	251	261
CWIP	0	0	0	2	3	2	11	7	0
Investments	12	9	7	185	188	211	399	515	573
Other Assets	74	441	209	541	509	645	706	757	726
Total Assets	86	451	216	907	881	1,062	1,355	1,529	1,561

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity +	27	-107	29	84	103	51	119	124
Cash from Investing Activity +	-6	-13	15	-38	0	-75	-306	-162
Cash from Financing Activity +	-21	132	-56	-34	-95	14	223	-3
Net Cash Flow	-0	12	-11	13	8	-9	36	-41

Free Cash Flow

Month	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Free Cash Flow	-33.00	-159.00	-137.00	-255.00	-160.00	-124.00	86.00	68.00

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

Month	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	215	257	427	120	103	82	78	91
Inventory Days	8	32	41	200	263	209	197	180
Days Payable	180	236	249	106	126	101	50	66
Cash Conversion Cycle	43	53	219	213	240	189	225	204
Working Capital Days	111	122	313	180	185	151	154	159
ROCE %		12%	-8%	14%	11%	21%	18%	13%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024
Promoters	74.61%	74.61%	74.61%	74.61%	74.61%	74.61%	74.61%	74.61%	74.61%
FIIs	3.84%	4.07%	3.74%	1.81%	1.86%	1.61%	1.61%	0.76%	0.56%
DIIs	9.04%	11.06%	11.37%	10.02%	9.19%	8.14%	7.43%	8.69%	8.85%
Public	12.52%	10.27%	10.27%	13.56%	14.33%	15.62%	16.36%	15.92%	15.98%
No. of Shareholders	1,64,536	1,32,892	1,22,843	1,05,011	99,274	96,528	91,107	78,307	79,500

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund Name	No of Shares	AUM (%)	Amount Invested (Cr)	Previous Number of Shares	Previous Date	Percentage Change
Nippon India Small Cap Fund	4,136,864	0.37	223.06	4,136,864	2024-12-20	0%
DSP Small Cap Fund	2,374,332	0.77	128.02	4,136,864	2024-12-20	-42.61%
Nippon India Flexi Cap Fund	902,840	0.58	48.68	4,136,864	2024-12-20	-78.18%
L&T Focused Equity Fund	305,848	1.29	12.21	4,136,864	2024-12-20	-92.61%
Nippon India Capital Builder Fund IV - Series B	15,330	1.14	0.59	4,136,864	2024-12-20	-99.63%

ROCE / ROE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	10.00	10.00	10.00	10.00	10.00
Basic EPS (Rs.)	12.24	14.59	16.06	9.09	6.26
Diluted EPS (Rs.)	12.24	14.59	11.90	5.88	3.52
Cash EPS (Rs.)	16.56	17.51	16.48	15.91	11.43
Book Value[Excl.RevalReserv]/Share (Rs.)	129.09	117.72	67.56	85.44	74.40
Book Value[Incl.RevalReserv]/Share (Rs.)	129.09	117.72	67.56	85.44	74.40
Revenue From Operations / Share (Rs.)	152.93	149.83	171.07	174.75	177.17
PBDIT / Share (Rs.)	22.06	24.06	24.15	24.96	19.93
PBIT / Share (Rs.)	17.74	20.10	19.57	18.14	12.88
PBT / Share (Rs.)	16.56	18.36	16.39	12.14	6.32
Net Profit / Share (Rs.)	12.24	13.54	11.90	9.09	4.38
NP After MI And SOA / Share (Rs.)	12.24	13.54	11.90	9.09	4.38
PBDIT Margin (%)	14.42	16.06	14.11	14.28	11.24
PBIT Margin (%)	11.60	13.41	11.44	10.38	7.26
PBT Margin (%)	10.82	12.25	9.58	6.94	3.56
Net Profit Margin (%)	8.00	9.03	6.95	5.20	2.47
NP After MI And SOA Margin (%)	8.00	9.03	6.95	5.20	2.47
Return on Networth / Equity (%)	9.48	11.50	17.61	10.63	5.88
Return on Capital Employeed (%)	13.44	16.60	22.15	16.49	12.88
Return On Assets (%)	7.11	8.53	7.93	4.63	2.25
Long Term Debt / Equity (X)	0.00	0.01	0.26	0.23	0.34
Total Debt / Equity (X)	0.14	0.16	0.72	0.81	1.11
Asset Turnover Ratio (%)	0.92	1.05	0.00	0.62	0.00
Current Ratio (X)	2.91	2.90	1.64	1.43	1.30
Quick Ratio (X)	1.94	1.81	0.84	0.81	0.81
Inventory Turnover Ratio (X)	2.13	1.95	0.00	1.37	0.00
Dividend Payout Ratio (NP) (%)	8.17	0.00	0.00	0.00	0.00
Dividend Payout Ratio (CP) (%)	6.04	0.00	0.00	0.00	0.00
Earning Retention Ratio (%)	91.83	0.00	0.00	0.00	0.00
Cash Earning Retention Ratio (%)	93.96	0.00	0.00	0.00	0.00
Interest Coverage Ratio (X)	18.65	13.83	7.60	4.16	3.04
Interest Coverage Ratio (Post Tax) (X)	11.35	8.78	4.74	2.51	1.67
Enterprise Value (Cr.)	3698.78	3094.10	0.00	0.00	0.00
EV / Net Operating Revenue (X)	2.66	2.27	0.00	0.00	0.00
EV / EBITDA (X)	18.42	14.12	0.00	0.00	0.00
MarketCap / Net Operating Revenue (X)	2.62	2.24	0.00	0.00	0.00
Retention Ratios (%)	91.82	0.00	0.00	0.00	0.00
Price / BV (X)	3.10	2.85	0.00	0.00	0.00
Price / Net Operating Revenue (X)	2.62	2.24	0.00	0.00	0.00
EarningsYield	0.03	0.04	0.00	0.00	0.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of as of December 22, 2024 is: 498.18

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 December 22, 2024, is Overvalued by 0.56% compared to the current share price 501.00

Intrinsic Value of as of December 22, 2024 is: 572.71

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 December 22, 2024, is Undervalued by 14.31% compared to the current share price 501.00

Last 5 Year EPS CAGR: 14.96%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The company has higher reserves (519.11 cr) compared to borrowings (161.00 cr), indicating strong financial stability. The company has shown consistent growth in sales (311.44 cr) and profit (81.22 cr) over the years.	The stock has a low average ROCE of 10.13%, which may not be favorable. The stock has a high average Working Capital Days of 171.88, which may not be favorable. The stock has a high average Cash Conversion Cycle of 173.25, which may not be favorable.

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 :
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: 14.18%)
  - 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: 11.15%)
  - 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: 32.8 (Industry average Stock P/E: 74.88)
  - 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.

INDUSTRY	ADDRESS	CONTACT
Domestic Appliances	NH-8A, Sarkhej-Bavla Highway, Ahmedabad Gujarat 382213	sec@harshaengineers.com http://www.harshaengineers.com

Management
Name	Position Held
Mr. Rajendra Shah	Chairman & Wholetime Director
Mr. Harish Rangwala	Managing Director
Mr. Vishal Rangwala	WholeTime Director & CEO
Mr. Pilak Shah	Whole Time Director & COO
Ms. Hetal Ukani	Whole Time Director
Mr. Ambar Patel	Independent Director
Prof. (Dr) Neharika Vohra	Independent Director
Mr. Kunal Shah	Independent Director
Dr. Bhushan Punani	Independent Director
Mr. Ramakrishnan Kasinathan	Independent Director

FAQ

What is the latest intrinsic value of ?

The latest intrinsic value of as on 22 December 2024 is ₹498.18, which is 0.56% lower than the current market price of ₹501.00. The stock has a market capitalization of 4,560 Cr. and recorded a high/low of 614/360 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹1,213 Cr and total liabilities of ₹1,561 Cr.

What is the Market Cap of ?

The Market Cap of is 4,560 Cr..

What is the current Stock Price of as on 22 December 2024?

The current stock price of as on 22 December 2024 is 501.

What is the High / Low of stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of stocks is 614/360.

What is the Stock P/E of ?

The Stock P/E of is 32.8.

What is the Book Value of ?

The Book Value of is 143.

What is the Dividend Yield of ?

The Dividend Yield of is 0.20 %.

What is the ROCE of ?

The ROCE of is 13.4 %.

What is the ROE of ?

The ROE of is 10.6 %.

What is the Face Value of ?

The Face Value of is 10.0.