Harsha Engineers shares trade near IPO issue price of Rs 330; should you buy, sell or hold?
Shares of Harsha Engineers International Ltd traded close to their initial public offering (IPO) issue price level of Rs 330 in Friday’s deals. The stock rose 2.29 per cent to hit a day high of Rs 337.20 over its previous close of Rs 329.65. At the time of writing this story, the counter traded 0.93 per cent higher at Rs 332.70. The stock, which made a strong debut at the exchanges on September 26 last year, got listed at Rs 450 against the IPO issue price. That said, the scrip has declined 13.45 per cent on a year-to-date (YTD) basis.
AnandRathi Investment Services has assigned a ‘Buy’ call on the counter with a target price of Rs 440 over a one-year period.
“The company is actively focusing on increasing its both market share and wallet share with the bearing manufacturers in domestic markets, China and Asia Pacific. With favorable policy and regulatory framework, growing demand from end users, diversifying global supply chain network, higher localisation in domestic markets and growing outsourcing trend of bearing components. The bearing cages markets are poised to grow in long term and we believe Harsha Engineers, being one of the largest domestic players, should benefit going ahead. We initiate our coverage with a ‘Buy’ rating and a target price of Rs 400 per share,” the financial services firm stated.
“In terms of profitability, the company’s operating margins for the year ended March 2022 stood at 12.80 per cent at Rs 168.60 crore, an improvement of about 400 basis points (bps) from FY20 levels. The margins for the nine-month period ended December 2022 stood at 15.90 per cent at Rs 162.40 crore, an improvement of 210 bps over the same period last year,” it further stated.
On the technical front, Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, “Since the last two months the said counter has stabilised near Rs 320-325 zone. Moreover, it has made a bullish regular divergence near said levels which are looking lucrative. One can buy in the range of Rs 328-335 with a target of Rs 375 while keeping a stop loss place at Rs 309 on a daily close basis.”
AR Ramachandran from Tips2trades said, “Harsha Engineers looks bullish on the daily charts with strong support at Rs 309. A close above resistance of Rs 340 could lead to targets of Rs 358-387 in the near term.”
The stock was last seen trading higher than the 5-day moving averages but lower than the 20-day, 50-, 100- and 200-day moving averages. The counter’s 14-day relative strength index (RSI) came at 43.94. A level below 30 is defined as oversold while a value above 70 is considered overbought.
Harsha Engineers has an average target price of Rs 439, Trendlyne data showed, suggesting a potential upside of 31.85 per cent.
The company, as per its website, is the country’s largest manufacturer of precision-bearing cages in terms of capacity and operations.
Meanwhile, Indian equity benchmarks surged today in afternoon deals, led by gains in banks, automobiles, financials, technology and energy stocks.
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