Harsha Engineers International Ltd. (HARSHA) AI Stock Analysis

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Harsha Engineers International Ltd.

(NSE:HARSHA)

Select Model

Rating:64Neutral

Price Target:INR 507.00▲(22.29% Upside)

Action:reiterated

Date:08/09/26

The score is primarily held back by weak and inconsistent cash generation (including materially negative free cash flow in FY2026) and uneven profitability, despite improving leverage and balance-sheet strength. Technically, the setup is positive with price above major moving averages and supportive momentum indicators. Valuation is only moderately supportive due to a mid-range P/E and a very low dividend yield.

Positive Factors

Revenue growth accelerationRevenue growth accelerating to about 11.8% in FY2026 indicates improving demand and expanding sales scale after low-single-digit growth in the prior two years. If sustained, greater volume can support operating leverage and reinforce the company’s relevance to bearing customers.

Negative Factors

Weak cash conversionMaterially negative free cash flow and the sharp FY2026 operating-cash-flow decline weaken earnings quality and internal funding capacity. If persistent, this pattern could increase reliance on external financing or constrain reinvestment, dividends, and other capital-allocation choices.

Harsha Engineers International Ltd. (HARSHA) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 36.82B
Dividend Yield: 0.36%
Average Volume (3M): 9,980
Price to Earnings (P/E): 24.4
Beta (1Y): 1.28
Revenue Growth: 20.22%
EPS Growth: 69.59%
Country: India
Employees: 1,745
Sector: General
Sector Strength: 55
Industry: Manufacturing - Tools & Accessories

Harsha Engineers International Ltd. Business Overview & Revenue Model

Company Description

Harsha Engineers International Limited, headquartered in Ahmedabad, India, specializes in the manufacturing and worldwide distribution of industrial components. The company produces a variety of precision bearing cages, crafted from materials such as...

How the Company Makes Money

HARSHA makes money primarily by manufacturing and selling bearing cages (and related bearing components) to bearing manufacturers and other industrial customers. Revenue is generated through: (1) product sales of precision bearing cages produced usin...

Harsha Engineers International Ltd. Financial Statement Overview

Summary

Balance sheet strength is a clear positive with materially lower leverage (debt-to-equity down to ~0.16 by FY2025) and consistent equity growth. However, earnings quality is constrained by volatile profitability (net margin trending down through FY2025) and weak cash conversion, with operating cash flow dropping sharply in FY2026 and free cash flow turning materially negative.

Income Statement

64Positive

Balance Sheet

78Positive

Cash Flow

46Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	17.19B	16.27B	14.08B	13.92B	13.64B	13.10B
Gross Profit	6.13B	5.16B	6.69B	6.05B	6.28B	4.40B
EBITDA	2.75B	2.40B	1.75B	2.01B	2.19B	1.88B
Net Income	1.55B	1.55B	893.10M	1.11B	1.23B	919.50M
Balance Sheet
Total Assets	0	20.67B	16.91B	15.67B	14.45B	11.58B
Cash, Cash Equivalents and Short-Term Investments	2.90B	2.91B	3.18B	3.18B	2.87B	347.08M
Total Debt	0	3.72B	2.00B	1.77B	1.82B	3.85B
Total Liabilities	-14.02B	6.65B	4.37B	3.91B	3.73B	6.36B
Stockholders Equity	14.02B	14.02B	12.54B	11.75B	10.72B	5.22B
Cash Flow
Free Cash Flow	-864.50M	-557.40M	-30.00M	653.30M	562.60M	-130.55M
Operating Cash Flow	-180.30M	642.90M	2.06B	1.40B	1.33B	364.74M
Investing Cash Flow	-810.70M	-2.09B	-2.12B	-1.73B	-3.08B	-518.30M
Financing Cash Flow	1.03B	1.63B	59.10M	-146.60M	2.16B	37.26M

Harsha Engineers International Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price414.60

Price Trends

50DMA444.34Negative

100DMA430.67Negative

200DMA403.67Positive

Market Momentum

MACD-8.93Positive

RSI40.32Neutral

STOCH45.62Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HARSHA, the sentiment is Negative. The current price of 414.60 is below the 20-day moving average (MA) of 437.52, below the 50-day MA of 444.34, and above the 200-day MA of 403.67, indicating a neutral trend. The MACD of -8.93 indicates Positive momentum. The RSI at 40.32 is Neutral, neither overbought nor oversold. The STOCH value of 45.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:HARSHA.

Harsha Engineers International Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:HARSHA against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:NRBBEARING	79Outperform	INR 43.41B	29.44	―	2.74%	14.37%	70.31%
IN:SKFINDIA	70Neutral	INR 68.90B	32.92	―	2.88%	-38.60%	-60.08%
IN:TIMKEN	65Neutral	INR 214.53B	47.31	―	0.17%	18.97%	-0.31%
IN:HARSHA	64Neutral	INR 37.75B	24.38	―	0.36%	20.22%	69.59%
IN:STERTOOLS	56Neutral	INR 7.25B	59.95	―	2.66%	-9.28%	-46.61%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:JTEKTINDIA	40Underperform	INR 30.45B	41.85	―	0.68%	16.79%	-4.03%

* General Sector Average

Performance Comparison

IN:HARSHA and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:HARSHA	Harsha Engineers International Ltd.	414.60	12.25	3.05%
IN:JTEKTINDIA	JTEKT India Limited	109.80	-54.87	-33.32%
IN:NRBBEARING	NRB Bearings Ltd.	447.85	171.80	62.23%
IN:SKFINDIA	SKF India Limited	1393.70	-683.40	-32.90%
IN:STERTOOLS	Sterling Tools Limited	199.40	-104.37	-34.36%
IN:TIMKEN	Timken India Limited	2852.10	-204.93	-6.70%

Harsha Engineers International Ltd. Corporate Events

Harsha Engineers to Engage Investors at Equirus Annual India Conference 2026

Aug 10, 2026

Harsha Engineers International Ltd. has announced that it will participate in the Equirus Annual India Conference 2026 on Friday, August 14, 2026, at Sofitel BKC in Mumbai, engaging with investors and analysts through group and one-on-one meetings. T...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 09, 2026

Harsha Engineers International Ltd. AI Stock Analysis

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