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Harsha Engineers surges 47% on debut despite weak market

Harsha Engineers | The listing was on expected lines given the strong sector growth outlook, healthy financials, growing outsourcing trend of bearing manufacturers, and strong market share in the precision bearing cages segment in India, experts said.

September 26, 2022 / 05:31 PM IST
 
 
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Precision bearing cages manufacturer Harsha Engineers International's shares closed with a massive 47.4 percent rally in debut trade on September 26 despite a sharp correction in the market.

The stock settled the first trading session at Rs 486.5 on the National Stock Exchange, against the issue price of Rs 330 per share. The closing price on the BSE was Rs 485.9, up 47.24 percent.

In terms of volumes, Harsha Engineers traded with a volume of 24.98 lakh shares on the BSE, and 3.61 crore shares on the NSE.

The listing was on expected lines given the strong sector growth outlook, healthy financials, growing outsourcing trend of bearing manufacturers, and strong market share in precision bearing cages segment in India, experts said.

"We are very optimistic on Harsha Engineers with its dominant position and well placed to tap the growth in specialized precision components and bearing cage demand across all the industries," Prashanth Tapse, Senior VP Research at Mehta Equities said.

The risk takers can hold for a long-term perspective, he advised.

Also read - Harsha Engineers makes a bumper listing with 36% premium. Should you invest in the stock?

Harsha Engineers International, the largest manufacturer of precision bearing cages in terms of revenue in the organised sector in India with a 60 percent market share, has mobilised Rs 755 crore through its public issue. The price band for the offer was Rs 314-330 per share.

Precision bearing cages are the critical component within bearings. The world's bearing cage market is estimated at $5,230.6 million in 2021 and is expected to grow at a CAGR of 6-8 percent between 2021-29.

The company has registered a 22 percent CAGR growth in revenue and the profit grew at a CAGR of 105 percent during FY20-FY22.

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Sunil Shankar Matkar
first published: Sep 26, 2022 05:31 pm