Is Happy Forgings a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Happy Forgings Ltd is a good quality company .

Is Happy Forgings undervalued or overvalued?

The key valuation ratios of Happy Forgings Ltd's currently when compared to its past seem to suggest it is in the Somewhat overvalued zone .

What is Happy Forgings share price return in the past 10 years?

Data is not available for this company

Is Happy Forgings a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Happy Forgings Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

Happy Forgings Ltd - Stock Valuation and Financial Performance

Name: Happy Forgings
Brand: Happy Forgings

BSE: 544057 | NSE: HAPPYFORGE | Forgings | Small Cap

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Happy Forgings Share Price

₹1,008.50 -11.85 -1.16%
as on 20-Dec'24 16:59

10 Year X-Ray of Happy Forgings:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Standalone Basis ^P Consolidated Basis ^P

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Value Creation ⓘ

Value Creation Index Colour Code Guide ⓘ

	Mar'14	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	TTM
ROCE % ⓘ	11.4%	15.3%	15.2%	19.3%	28.4%	31.8%	23.9%	17.5%	21.8%	26.2%	-
Value Creation Index ⓘ	-0.2	0.1	0.1	0.4	1.1	1.4	0.8	0.3	0.6	0.9	-
Growth Parameters ⓘ Growth Parameters Colour Code Guide ⓘ
Sales ⓘ	298	341	375	436	551	750	558	585	860	1,197	1,388
Sales YoY Gr.	-	14.6%	9.8%	16.3%	26.4%	36.3%	-25.6%	4.8%	47%	39.1%	-
Adj EPS ⓘ	0.5	0.9	2.2	3.7	7.2	10.7	8.8	9.6	15.6	23	27.5
YoY Gr.	-	89.8%	131.2%	72.6%	93%	48.9%	-17.4%	8.4%	62.8%	47.7%	-
BVPS (₹) ⓘ	8	10.2	16.6	20.3	23.3	53.5	62.4	72.1	88	110.4	181.6
Adj Net Profit ⓘ	3.5	6.9	16.9	29.3	56.5	95.4	78.9	85.5	139	205	259
Cash Flow from Ops. ⓘ	9.4	28.5	39	48.2	34.5	136	169	49.9	80.3	209	-
Debt/CF from Ops. ⓘ	25.5	8.2	5.3	3.8	8.7	1.1	0.7	3.1	3	1	-

CAGR ⓘ

CAGR Colour Code Guide ⓘ

	9 Years	5 Years	3 Years	1 Years
Sales ⓘ	16.7%	16.8%	29%	39.1%
Adj EPS ⓘ	53.3%	26.2%	37.6%	47.7%
BVPSⓘ	33.9%	36.5%	21%	25.5%
Share Price	-	-	-	-

Key Financial Parameters ⓘ

Performance Ratio Colour Code Guide ⓘ

	Mar'14	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	TTM
Return on Equity % ⓘ	6.7	10.4	16.4	20.1	32.9	28.8	15.2	14.2	19.4	23.1	18.8
Op. Profit Mgn % ⓘ	17.3	18.5	20	21.4	24.9	27.4	25.7	27.1	26.9	28.5	28.5
Net Profit Mgn % ⓘ	1.2	2	4.5	6.7	10.3	12.7	14.1	14.6	16.2	17.2	18.7
Debt to Equity ⓘ	4.2	3.1	1.6	1.2	1.6	0.3	0.2	0.2	0.3	0.2	0
Working Cap Days ⓘ	169	163	150	128	143	151	219	223	180	157	98
Cash Conv. Cycle ⓘ	69	83	77	69	97	106	130	126	125	116	65

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 28.95%

Net Profit is growing at healthy rate in last 3 years 37.61%

Return on Equity has declined versus last 3 years average to 18.80%

Sales growth is not so good in last 4 quarters at 9.63%

Latest Financials - Happy Forgings Ltd.

	Standalone	Consolidated
TTM EPS (₹)	27.5	25.8
TTM Sales (₹ Cr.)	1,388	1,358
BVPS (₹.) ⓘ	181.6	181.6
Reserves (₹ Cr.) ⓘ	1,723	1,692
P/BV ⓘ	5.55	5.55
PE ⓘ	36.69	39.10

From the Market
52 Week Low / High (₹)	813.55 / 1298.95
All Time Low / High (₹)	813.55 / 1298.95
Market Cap (₹ Cr.)	9,501
Equity (₹ Cr.)	18.8
Face Value (₹)	2
Industry PE ⓘ	37.5

Management X-Ray of Happy Forgings:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged ^*

0.00

* Pledged shares as % of Promoter's holding (%)

Valuation of Happy Forgings

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Price Chart

Price to Earnings

Enterprise Value to EBIT

Price to Book-Value

Price to Sales

Dividend History

Analyst's Notes

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Key Ratios of Happy Forgings

Standalone Basis Consolidated Basis

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Sales	341	375	436	551	750	558	585	860	1,197	1,358
Operating Expenses ⓘ	278	300	343	413	545	416	426	629	856	971
Manufacturing Costs	71	73	99	89	121	99	102	143	173	211
Material Costs	169	185	193	250	336	249	252	388	551	597
Employee Cost	19	23	36	42	51	49	49	69	88	114
Other Costs ⓘ	18	20	15	32	37	19	24	30	44	49
Operating Profit ⓘ	63	75	93	137	205	142	159	231	341	388
Operating Profit Margin (%)	18.5%	20.0%	21.3%	24.9%	27.4%	25.5%	27.1%	26.8%	28.5%	28.5%
Other Income ⓘ	9	2	1	4	1	7	6	6	6	13
Interest ⓘ	29	29	23	22	23	25	12	7	12	12
Depreciation ⓘ	26	28	28	23	29	28	36	38	54	65
Exceptional Items ⓘ	0	0	0	0	0	0	0	0	0	0
Profit Before Tax ⓘ	17	20	42	96	155	96	117	192	280	324
Tax ⓘ	2	3	13	38	59	16	31	50	71	81
Profit After Tax	15	17	29	58	95	80	86	142	209	243
PAT Margin (%)	4.3%	4.5%	6.8%	10.6%	12.7%	14.3%	14.8%	16.5%	17.4%	17.9%
Adjusted EPS (₹)	2.0	2.2	3.7	7.4	10.7	8.9	9.7	15.9	23.3	25.8
Dividend Payout Ratio (%)	0%	0%	0%	0%	0%	0%	0%	0%	0%	16%

Balance Sheet

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Equity and Liabilities
Shareholders Fund	76	131	160	184	479	558	645	788	988	1,607
Share Capital ⓘ	7	8	8	8	9	9	9	18	18	19
Reserves ⓘ	69	123	152	176	470	550	636	770	970	1,588
Minority Interest	0	0	0	0	0	0	0	0	0	0
Debt	214	184	176	293	143	105	150	236	193	143
Long Term Debt	157	135	113	161	70	54	30	74	58	0
Short Term Debt	56	49	63	132	73	51	120	162	134	143
Trade Payables	47	39	28	33	28	36	38	44	48	56
Others Liabilities ⓘ	45	56	31	67	69	64	41	62	98	81
Total Liabilities ⓘ	382	410	395	576	719	763	874	1,130	1,326	1,886
Fixed Assets
Gross Block	310	367	380	471	319	332	507	586	859	988
Accumulated Depreciation	108	135	163	186	29	57	92	130	181	244
Net Fixed Assetsⓘ	203	232	217	285	291	275	415	456	678	744
CWIP ⓘ	4	1	7	9	46	109	40	212	75	127
Investmentsⓘ	0	0	0	0	30	0	0	0	0	0
Inventories	76	73	53	76	98	76	122	184	170	224
Trade Receivables	74	67	80	172	169	138	166	222	308	357
Cash Equivalents	5	3	3	7	5	56	28	1	0	117
Others Assetsⓘ	20	33	35	27	80	109	104	54	95	317
Total Assets ⓘ	382	410	395	576	719	763	874	1,130	1,326	1,886

Cash Flow

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Cash Flow From Operating Activity ⓘ	28	39	48	34	136	169	50	80	209	189
PBT ⓘ	17	20	42	96	155	96	117	192	280	324
Adjustment ⓘ	18	27	28	45	55	50	46	40	71	72
Changes in Working Capital ⓘ	-3	-1	-7	-84	-23	47	-79	-109	-78	-123
Tax Paid ⓘ	-3	-7	-15	-23	-50	-25	-34	-43	-64	-84
Cash Flow From Investing Activity ⓘ	-5	-24	-23	-132	-162	-119	-59	-166	-172	-469
Capex	-4	-20	-24	-128	-166	-101	-92	-191	-174	-194
Net Investments	0	0	0	0	0	-51	29	23	2	-277
Others ⓘ	-1	-5	1	-4	4	33	4	2	0	1
Cash Flow From Financing Activityⓘ	-22	-17	-24	96	27	-50	10	83	-37	281
Net Proceeds from Shares ⓘ	2	5	0	0	199	0	0	0	0	381
Net Proceeds from Borrowing ⓘ	0	0	-30	48	-90	-16	-29	48	2	-84
Interest Paid ⓘ	0	0	0	-21	-24	-12	-25	-7	-12	-13
Dividend Paid ⓘ	0	0	0	0	0	0	0	0	0	-12
Others ⓘ	-25	-22	6	69	-59	-23	64	42	-27	9
Net Cash Flow ⓘ	1	-2	0	-2	1	0	1	-3	0	1

Finance Ratio

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Ratios
ROE (%)	22.17	16.39	20.21	33.89	28.82	23.19	14.36	19.86	23.5	18.73
ROCE (%)	15.26	15.24	19.32	28.44	31.77	23.88	17.46	21.81	26.18	22.7
Asset Turnover Ratio	0.98	1.06	1.21	1.16	1.16	0.95	0.71	0.86	0.98	0.85
PAT to CFO Conversion(x)	1.87	2.29	1.66	0.59	1.43	2.11	0.58	0.56	1	0.78
Working Capital Days
Receivable Days	73	61	55	82	83	67	95	82	81	89
Inventory Days	70	65	48	42	42	49	62	65	54	53
Payable Days	106	85	63	45	33	55	54	39	30	32

Happy Forgings Ltd Stock News

Happy Forgings Ltd FAQs

What is the share price of Happy Forgings?

Company share prices are keep on changing according to the market conditions. The closing price of Happy Forgings on 20-Dec-2024 16:59 is ₹1,008.5.

What is the market cap of Happy Forgings?

Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 20-Dec-2024 16:59 the market cap of Happy Forgings stood at ₹9,500.6.

What is the P/E ratio of Happy Forgings?

The latest P/E ratio of Happy Forgings as of 20-Dec-2024 16:59 is 36.69.

What is the P/B ratio of Happy Forgings?

The latest P/B ratio of Happy Forgings as of 20-Dec-2024 16:59 is 5.55.

What is the 52-week high and low of Happy Forgings?

The 52-week high of Happy Forgings is ₹1,299 and the 52-week low is ₹813.5.

What is the TTM revenue of Happy Forgings?

The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Happy Forgings is ₹1,388 ( Cr.) .

About Happy Forgings Ltd

Happy Forgings was incorporated as ‘Happy Forgings Private Limited’ at Jalandhar, Punjab as a private limited company under the Companies Act, 1956, pursuant to a certificate of incorporation dated July 2, 1979, issued by the Registrar of Companies, Punjab, Himachal Pradesh and Chandigarh. Thereafter, the company was converted from a private limited company to a public limited company, pursuant to a resolution passed in the EGM of its Shareholders held on March 31, 1998, and the name of the Company was changed to ‘Happy Forgings Limited’, and a fresh certificate of incorporation dated April 1, 1998, was issued to the company by the Registrar of Companies, Punjab, Himachal Pradesh and Chandigarh.

The company is the fourth largest engineering led manufacturer of complex and safety critical, heavy forged and high precision machined components in India as of Fiscal 2023 in terms of forgings capacity. The company, through its vertically integrated operations, is engaged in engineering, process design, testing, manufacturing, and supply of a variety of components that are both margin accretive and value-additive. It primarily caters to domestic and global original equipment manufacturers (OEMs) manufacturing commercial vehicles in the automotive sector, while in the non-automotive sector, it caters to manufacturers of farm equipment, off-highway vehicles and manufacturers of industrial equipment and machinery for oil and gas, power generation, railways and wind turbine industries.

With many years of experience of manufacturing and supplying quality and complex components according to customers specifications, it has emerged as a leading player in the domestic crankshaft manufacturing industry with the second largest production capacity for commercial vehicle and high horse-power industrial crankshafts in India. Its focus on producing margin accretive value-added products has led to its transition from being a forging led business to a machined components manufacture. It manufactures a wide range of heavy forged and machined products which include crankshafts, front axle beams, steering knuckles, differential cases, transmission parts, pinion shafts, suspension products and valve bodies across industries for a diversified base of customers.

Business area of the company

The company is principally engaged in manufacturing of forgings and related components. It primarily caters to domestic and global original equipment manufacturers (OEMs) manufacturing commercial vehicles in the automotive sector, while in the non-automotive sector, it caters to manufacturers of farm equipment, off-highway vehicles and manufacturers of industrial equipment and machinery for oil and gas, power generation, railways and wind turbine industries

Products of the company

Crankshafts
Front axle beams
Steering knuckles
Differential cases
Transmission parts
Pinion shafts
Suspension products
Valve bodies

Awards, accreditations or recognitions

2011: ‘Best in Class’ award by Oerlikon Drive Systems.
2012: ‘Development’ award by JCB India Limited.
2015: ‘Best Supplier (Forging)’award from a gear manufacturing company.
2016: ‘Overall Excellence in Cost Delivery and Quality’ award at Partners Meet 2016 organised by Escorts.
2016: ‘Proactive Cost Competitiveness’ award for the year 2015-16 at Supplier Summit 2016 organised by Ashok Leyland.
2017: ‘Outstanding Contribution in Overall Performance Excellence’ award from VE Commercial Vehicles, a joint venture of Volvo Group & Eicher Motors.
2017: ‘Sanjeevani Award’ by an engine manufacturing company.
2018: ‘Delivery Excellence’ award at the Meritor Europe Truck Supplier Day by Meritor.
2021: Received the IATF 16949:2016 accreditation for manufacturing of forged and machined components without product design responsibility and with the extended manufacturing site(s) for Kanganwal Facility I.
2021: Received the ISO 14001: 2015 accreditation for manufacture of forged and machined components Kanganwal Facility I.
2021: Received the ISO 45001: 2018accreditation for manufacture of forged and machined components Kanganwal Facility I.
2022: ‘Excellence Award’ by Escorts Kubota Limited.
2022: Received the IATF 16949:2016 accreditation for manufacture of forged and machined components and excluding product design Dugri Facility.
2023: ‘Supplier Excellence Award’ for delivery performance at AAM (American Axle Manufacturing) India Supplier Event 2023.
2023: Award for Outstanding Contribution in Gear Business’ at the Annual Supplier Conference 2023 organised by Eicher Engineering Components, VE Commercial Vehicles.
2023: Received a certificate of appreciation for supplier agri machinery under ‘Business Excellence Process/Digitalisation’ by Escorts Kubota Limited
2023: Received the ISO 45001:2018 accreditation for manufacture of forged and machined components and excluding product design Dugri Facility.
2023: Received the ISO 14001:2015 accreditation for manufacture of forged and machined components and excluding product design Dugri Facility.

History and milestones

1979: Incorporation of the Company.
1995: Purchased heavy duty hammers for manufacturing at Kanganwal Facility II.
2006: Commencement of operations at Kanganwal Facility I.
2007: The revenue from operations of the Company crossed Rs 1,000 million.
2008: Commissioned its first 8,000 ton forging press.
2009: Commencement of manufacturing front steering parts by procuring axle arms.
2009: Installed model grinding technology used to manufacture four cylinder and six cylinder crankshafts.
2011: Ventured into new industries i.e. commercial vehicles, farm equipments and industrial equipments.
2017: Commissioned its second 8,000 ton forging press.
2018: Fund raised from India Business Excellence Fund-III.
2018: The revenue from operations of the Company crossed Rs 500 crore
2019: Forayed into a new sector by manufacturing pinion shaft to cater to the manufacturers in the wind turbine industry.
2021: Installed its third 8,000 ton forging press line.
2021: Commencement of its operations at the Dugri Facility.
2022: Commencement of sale of front axle beam for electric buses to one of its customers catering in the commercial vehicle industry
2022: Its long term bank facilities were assigned ‘AA-(Stable)’rating each from CRISIL Ratings and ICRA Limited.
2022: Commissioned its first 14,000 ton forging press line.
2022: Installed eight dedicated lines for manufacturing crankshafts.