Harsha Engineers International Receives 'Hold' Rating and Shows Strong Debt Servicing Ability

Harsha Engineers International, a smallcap company in the engineering industry, has recently received a 'Hold' rating from MarketsMOJO on November 25, 2024. This upgrade is based on the company's strong ability to service debt, with a low Debt to EBITDA ratio of 1.00 times.
Technically, the stock is currently in a Mildly Bullish range and the trend has improved from Sideways on November 25, 2024. One key technical factor, the Bollinger Band, has also been Mildly Bullish since the same date.

The majority shareholders of Harsha Engineers International are the promoters, indicating their confidence in the company's performance. However, the company has shown poor long-term growth with a decline in Net Sales by an annual rate of -0.39% and Operating profit at 14.59% over the last 5 years.

In the latest quarter, the company's results have been flat with a decrease in PBT LESS OI(Q) at Rs 28.83 crore, falling by -14.0%, and PAT(Q) at Rs 28.96 crore, falling by -5.7%.

With a ROE of 10.7, the company has an expensive valuation with a 3.6 Price to Book Value. However, the stock is currently trading at a fair value compared to its average historical valuations. In the past year, the stock has generated a return of 21.88%, while its profits have risen by 20.3%. The PEG ratio of the company is 1.7, indicating a balanced growth potential.

Overall, while Harsha Engineers International may not have shown significant growth in the past, its strong ability to service debt and fair valuation make it a good stock to hold for potential future growth.