Hold Harsha Engineers International; target of Rs 407 Prabhudas Lilladher

About this update from Harsha Engineers International Ltd.

Prabhudas Lilladher's research report on Harsha Engineers InternationalHarsha Engineers International (HARSHA) delivered a steady performance, with revenue rising 7.3% YoY and EBITDA margin improving 228bps YoY to 14.1%. The quarter benefited from strong export momentum, reflecting sustained recovery in industrial demand across Europe and other key markets. The Romania unit reported robust 38% YoY growth in Q2FY26, supported by a favorable product mix of finished goods. The operational greenfield facility, Advantek, is expected to bolster domestic prospects. Meanwhile, increasing wallet share from existing clients is expected to garner ~30% revenue growth in bronze bushings segment in FY26, while management maintains their cautiously optimistic outlook—guiding for high single-digit growth in consolidated business and low mid-teens growth in India-Engineering.OutlookThe stock is currently trading at a P/E of 20.2x/18.0x on FY27/28E earnings. We roll forward to Sep’27E and maintain our ‘Hold’ rating valuing the stock at a PE of 20x Sep’27E (21x Mar’27E) arriving at a revised TP of Rs407 (Rs402 earlier).For all recommendations report, click hereDisclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.Harsha Engineers International - 11112025 - prabhu

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