Hawa Engineers Reports 219.57% PAT Growth Amid Record High Net Sales

Hawa Engineers, a microcap player in the engineering and industrial equipment sector, has demonstrated notable financial performance over the past year. The company reported a remarkable growth in profit after tax (PAT) for the first half of the year, reaching Rs 1.47 crore, which marks an impressive increase of 219.57%. Additionally, net sales for the latest quarter peaked at Rs 35.36 crore, reflecting strong operational momentum.
The stock has shown a robust return of 71.94% over the past year, significantly outperforming the BSE 500 index in each of the last three annual periods. With a return on capital employed (ROCE) of 17.1 and an enterprise value to capital employed ratio of 3.1, Hawa Engineers presents an attractive valuation compared to its historical averages.

Despite these positive indicators, the company faces challenges in long-term fundamental strength, evidenced by a compound annual growth rate (CAGR) of 18.45% in operating profits over the last five years. Furthermore, its ability to manage debt is a concern, highlighted by a low EBIT to interest ratio of 1.55 and a return on equity of 7.25%.