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Check Before You Invest : Harish Textile Engineers Ltd

BSE: 542682 NSE: ISIN: INE01K301012
  |   Sector:  Textiles & Apparels   |   Industry:  Textile - Machinery

Snapshot

Q.1 Which industry/sub-sector does Harish Textile Engineers Ltd belong to?
Harish Textile Engineers Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile - Machinery segment.
Q.2 Is Harish Textile Engineers Ltd a good quality company?
Harish Textile Engineers Ltd is a quality company, based on a multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Harish Textile Engineers Ltd undervalued or overvalued?
Harish Textile Engineers Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 4.23 7.83
Price to Book 1.75 1.76
Price to Sales 0.16 0.15
EV to EBITDA 4.34 6.73
Q.4 Is Harish Textile Engineers Ltd a good buy now?
Harish Textile Engineers Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Harish Textile Engineers Ltd?
Harish Textile Engineers Ltd revenue growth is 0.8% for FY-2025, which is below its 5-year CAGR of 9.56%, indicating slower growth.

Q.2 Gross Profit margin of Harish Textile Engineers Ltd?
Harish Textile Engineers Ltd Gross profit margin which is the profit after deduction of direct costs, is 1.4% for FY-2025, which is below its 5-year median of 2%, indicating decreasing margins.

Q.3 Operating Profit Margin of Harish Textile Engineers Ltd?
Harish Textile Engineers Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 4.01% for FY-2025, which is below its 5-year median of 4.23% indicating decreasing margins.

Q.4 Net Profit Margin of Harish Textile Engineers Ltd?
Harish Textile Engineers Ltd Net Profit Margin is 0.18% for FY-2025, is in line with its 5-year median of 0.18%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 1.4 2
Operating Profit Margin (%) 4.01 4.23
Net Profit Margin (%) 0.18 0.18

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Harish Textile Engineers Ltd?
Harish Textile Engineers Ltd Return on Asset is 0.31%, which is in line with its 5-year historical median of 0.31%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Harish Textile Engineers Ltd?
Harish Textile Engineers Ltd Return on capital employed is 9.83% for FY-2025, which is below its 5-year historical median of 10.88%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Harish Textile Engineers Ltd?
Harish Textile Engineers Ltd Return on equity is 2.68% for FY-2025, which is in line with its 5-year historical median of 2.68%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Harish Textile Engineers Ltd?
Harish Textile Engineers Ltd Cash conversion cycle is 39 days, in line with its 5-year historical median of 38 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.72 1.49
ROE (%) 2.68 2.68
ROCE (%) 9.83 10.88
Cash Conversion Cycle 39 days 38 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Harish Textile Engineers Ltd?
Harish Textile Engineers Ltd Debt-to-Equity ratio is 3.55, which is above the industry average of 0.00, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Harish Textile Engineers Ltd?
Harish Textile Engineers Ltd Debt to cash flow from operations is 2.96, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Harish Textile Engineers Ltd?

Q.1 Promoter shareholding and pledge status of Harish Textile Engineers Ltd?
Promoters hold 48.15% of the Harish Textile Engineers Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Harish Textile Engineers Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Harish Textile Engineers Ltd vs industry peers?
Harish Textile Engineers Ltd revenue CAGR is 9.56%, compared to the industry median CAGR of 5.58%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 0.8 5.6
Gross Profit Growth (%) 32.4 8.5
Operating Profit Growth (%) -1.3 41.9
Net Profit Growth (%) 0 32
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.72 0.9
ROE (%) 2.68 3.23
ROCE (%) 9.83 10.88
Cash Conversion Cycle (days) 39.21 79

Valuation & price assessment

Q.1 Stock return of Harish Textile Engineers Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 10.91% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- 10.9% 25.9% 1.7%
Q.2 Valuation ratios of Harish Textile Engineers Ltd vs historical?
The current P/E ratio of 4.23 is lower than its historical median of 7.83, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 4.23 7.83 29.04
Price to Book 1.75 1.76 1.76
Price to Sales 0.16 0.15 2.25
EV to EBITDA 4.34 6.73 9.06

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