Subscribe to Harsha Engineers International: KR Choksey

KR Choksey IPO report on Harsha Engineers International

Harsha Engineers International Ltd. (HEIL) is the largest manufacturer of precision bearing cages in organised sector in India. It offers diversified suite of precision engineering products across geographies and end-user industries. HEIL’s business comprises of two segments, (i) Engineering Business, under which it manufactures bearing cages, complex and specialised precision stamped components, welded assemblies and brass castings and cages & bronze bushings; and (ii) Solar EPC Business, under which it provides complete comprehensive turnkey solutions to all solar photovoltaic requirements. HEIL has approx. 50-60% of the market share in the organised segment of the Indian bearing cages market and 6.5% market share in the global organised bearing cages market for brass, steel and polyamide cages. HEIL is a technology driven company with a strong focus on quality, design and tool development, which has allowed it to develop products suited to its customers’ requirements.

Valuation and Outlook

We believe the company's long-term prospects are favorable, given long-standing relationship with key industry players. The company enjoys a healthy market share of 50-60% in the Indian organized precision bearing cages market. The company has healthy return ratios and good earnings visibility going ahead. HEIL is available at a discount to its listed industry peers. As a result, we recommend investors to ‘SUBSCRIBE’ to the IPO of HEIL