Past 10 year's financial track record analysis by Moneyworks4me indicates that Happy Forgings Ltd is a average quality company.
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.
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.
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.
| Mar'11 | Mar'12 | Mar'13 | Mar'14 | Mar'15 | Mar'16 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROCE % ⓘ | 13.1% | 15.3% | 8.3% | 11.4% | 15.3% | 15.2% | 23.9% | 17.5% | 21.8% | 26.2% | - |
| Value Creation Index ⓘ | 0.0 | 0.1 | -0.4 | -0.2 | 0.1 | 0.1 | 0.8 | 0.3 | 0.6 | 0.9 | - |
Growth Parameters ⓘGrowth Parameters Colour Code Guide ⓘ | |||||||||||
| Sales ⓘ | 186 | 252 | 248 | 298 | 341 | 375 | 558 | 585 | 860 | 1,197 | 1,388 |
| Sales YoY Gr. | - | 35.3% | -1.7% | 20.3% | 14.6% | 9.8% | 49% | 4.8% | 47% | 39.1% | - |
| Adj EPS ⓘ | 1.3 | 0.9 | -1.5 | 0.5 | 0.9 | 2.2 | 8.8 | 9.6 | 15.6 | 23 | 27.5 |
| YoY Gr. | - | -29.8% | -264.1% | NA | 89.8% | 131.2% | 309.8% | 8.4% | 62.8% | 47.7% | - |
| BVPS (₹) ⓘ | 7.6 | 8.9 | 7.3 | 8 | 10.2 | 16.6 | 62.4 | 72.1 | 88 | 110.4 | 181.6 |
| Adj Net Profit ⓘ | 8.1 | 5.7 | -9.6 | 3.5 | 6.9 | 16.9 | 78.9 | 85.5 | 139 | 205 | 259 |
| Cash Flow from Ops. ⓘ | 0 | 0 | 0 | 9.4 | 28.5 | 39 | 169 | 49.9 | 80.3 | 209 | - |
| Debt/CF from Ops. ⓘ | 0 | 0 | 0 | 25.5 | 8.2 | 5.3 | 0.7 | 3.1 | 3 | 1 | - |
CAGR Colour Code Guide ⓘ
| 9 Years | 5 Years | 3 Years | 1 Years | |||||
|---|---|---|---|---|---|---|---|---|
| Sales ⓘ | 23% | 28.5% | 29% | 39.1% | ||||
| Adj EPS ⓘ | 37.5% | 89.9% | 37.6% | 47.7% | ||||
| BVPSⓘ | 34.6% | 61.1% | 21% | 25.5% | ||||
| Share Price | - | - | - | - | ||||
Performance Ratio Colour Code Guide ⓘ
| Mar'11 | Mar'12 | Mar'13 | Mar'14 | Mar'15 | Mar'16 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on Equity % ⓘ | 19.4 | 11.2 | -18.9 | 6.7 | 10.4 | 16.4 | 22.9 | 14.2 | 19.4 | 23.1 | 18.8 |
| Op. Profit Mgn % ⓘ | 22.2 | 21.1 | 16.1 | 17.3 | 18.5 | 20 | 25.7 | 27.1 | 26.9 | 28.5 | 28.5 |
| Net Profit Mgn % ⓘ | 4.4 | 2.3 | -3.9 | 1.2 | 2 | 4.5 | 14.1 | 14.6 | 16.2 | 17.2 | 18.7 |
| Debt to Equity ⓘ | 4.3 | 4.2 | 4.8 | 4.2 | 3.1 | 1.6 | 0.2 | 0.2 | 0.3 | 0.2 | 0 |
| Working Cap Days ⓘ | 185 | 171 | 183 | 169 | 163 | 150 | 162 | 223 | 180 | 157 | 98 |
| Cash Conv. Cycle ⓘ | 120 | 97 | 74 | 69 | 83 | 77 | 83 | 126 | 125 | 116 | 65 |
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%
| Standalone | Consolidated | |
|---|---|---|
| TTM EPS (₹) | 27.5 | 25.8 |
| TTM Sales (₹ Cr.) | 1,388 | 1,358 |
| BVPS (₹.) ⓘ | 181.6 | 181.6 |
| Reserves (₹ Cr.) ⓘ | 1,692 | 1,692 |
| P/BV ⓘ | 5.93 | 5.93 |
| PE ⓘ | 39.20 | 41.78 |
| From the Market | |
|---|---|
| 52 Week Low / High (₹) | 813.55 / 1298.95 |
| All Time Low / High (₹) | 813.55 / 1298.95 |
| Market Cap (₹ Cr.) | 10,152 |
| Equity (₹ Cr.) | 18.8 |
| Face Value (₹) | 2 |
| Industry PE ⓘ | 38.1 |
| Pledged * | 0.00 | 0.00 | 0.00 | 0.00 |
| PARTICULARS | Mar'12 | Mar'13 | Mar'14 | Mar'15 | Mar'16 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 252 | 248 | 298 | 341 | 375 | 558 | 585 | 860 | 1,197 | 1,358 |
| Operating Expenses ⓘ | 199 | 208 | 246 | 278 | 300 | 416 | 426 | 629 | 856 | 971 |
| Manufacturing Costs | 40 | 52 | 62 | 71 | 73 | 99 | 102 | 143 | 173 | 211 |
| Material Costs | 144 | 134 | 151 | 169 | 185 | 249 | 252 | 388 | 551 | 597 |
| Employee Cost | 9 | 14 | 19 | 19 | 23 | 49 | 49 | 69 | 88 | 114 |
| Other Costs ⓘ | 7 | 8 | 15 | 18 | 20 | 19 | 24 | 30 | 44 | 49 |
| Operating Profit ⓘ | 53 | 40 | 52 | 63 | 75 | 142 | 159 | 231 | 341 | 388 |
| Operating Profit Margin (%) | 21.1% | 16.1% | 17.3% | 18.5% | 20.0% | 25.5% | 27.1% | 26.8% | 28.5% | 28.5% |
| Other Income ⓘ | 3 | 1 | 1 | 9 | 2 | 7 | 6 | 6 | 6 | 13 |
| Interest ⓘ | 31 | 31 | 27 | 29 | 29 | 25 | 12 | 7 | 12 | 12 |
| Depreciation ⓘ | 16 | 18 | 21 | 26 | 28 | 28 | 36 | 38 | 54 | 65 |
| Exceptional Items ⓘ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax ⓘ | 10 | -8 | 5 | 17 | 20 | 96 | 117 | 192 | 280 | 324 |
| Tax ⓘ | 4 | 1 | 2 | 2 | 3 | 16 | 31 | 50 | 71 | 81 |
| Profit After Tax | 6 | -10 | 3 | 15 | 17 | 80 | 86 | 142 | 209 | 243 |
| PAT Margin (%) | 2.3% | -3.9% | 1.2% | 4.3% | 4.5% | 14.3% | 14.8% | 16.5% | 17.4% | 17.9% |
| Adjusted EPS (₹) | 0.9 | -1.5 | 0.5 | 2.0 | 2.2 | 8.9 | 9.7 | 15.9 | 23.3 | 25.8 |
| Dividend Payout Ratio (%) | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 16% |
| PARTICULARS | Mar'12 | Mar'13 | Mar'14 | Mar'15 | Mar'16 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
Equity and Liabilities | ||||||||||
| Shareholders Fund | 55 | 47 | 57 | 76 | 131 | 558 | 645 | 788 | 988 | 1,607 |
| Share Capital ⓘ | 6 | 6 | 7 | 7 | 8 | 9 | 9 | 18 | 18 | 19 |
| Reserves ⓘ | 48 | 40 | 50 | 69 | 123 | 550 | 636 | 770 | 970 | 1,588 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Debt | 197 | 223 | 227 | 214 | 184 | 105 | 150 | 236 | 193 | 143 |
| Long Term Debt | 118 | 171 | 172 | 157 | 135 | 54 | 30 | 74 | 58 | 0 |
| Short Term Debt | 79 | 52 | 55 | 56 | 49 | 51 | 120 | 162 | 134 | 143 |
| Trade Payables | 43 | 56 | 51 | 47 | 39 | 36 | 38 | 44 | 48 | 56 |
| Others Liabilities ⓘ | 69 | 34 | 55 | 45 | 56 | 64 | 41 | 62 | 98 | 81 |
| Total Liabilities ⓘ | 364 | 360 | 390 | 382 | 410 | 763 | 874 | 1,130 | 1,326 | 1,886 |
Fixed Assets | ||||||||||
| Gross Block | 261 | 273 | 292 | 310 | 367 | 332 | 507 | 586 | 859 | 988 |
| Accumulated Depreciation | 43 | 61 | 82 | 108 | 135 | 57 | 92 | 130 | 181 | 244 |
| Net Fixed Assetsⓘ | 218 | 212 | 210 | 203 | 232 | 275 | 415 | 456 | 678 | 744 |
| CWIP ⓘ | 4 | 4 | 7 | 4 | 1 | 109 | 40 | 212 | 75 | 127 |
| Investmentsⓘ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Inventories | 65 | 56 | 70 | 76 | 73 | 76 | 122 | 184 | 170 | 224 |
| Trade Receivables | 55 | 60 | 78 | 74 | 67 | 138 | 166 | 222 | 308 | 357 |
| Cash Equivalents | 2 | 5 | 4 | 5 | 3 | 56 | 28 | 1 | 0 | 117 |
| Others Assetsⓘ | 19 | 22 | 21 | 20 | 33 | 109 | 104 | 54 | 95 | 317 |
| Total Assets ⓘ | 364 | 360 | 390 | 382 | 410 | 763 | 874 | 1,130 | 1,326 | 1,886 |
| PARTICULARS | Mar'12 | Mar'13 | Mar'14 | Mar'15 | Mar'16 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash Flow From Operating Activity ⓘ | 0 | 0 | 9 | 28 | 39 | 169 | 50 | 80 | 209 | 189 |
| PBT ⓘ | 0 | 0 | 5 | 17 | 20 | 96 | 117 | 192 | 280 | 324 |
| Adjustment ⓘ | 0 | 0 | 20 | 18 | 27 | 50 | 46 | 40 | 71 | 72 |
| Changes in Working Capital ⓘ | 0 | 0 | -15 | -3 | -1 | 47 | -79 | -109 | -78 | -123 |
| Tax Paid ⓘ | 0 | 0 | -1 | -3 | -7 | -25 | -34 | -43 | -64 | -84 |
| Cash Flow From Investing Activity ⓘ | 0 | 0 | -21 | -5 | -24 | -119 | -59 | -166 | -172 | -469 |
| Capex | 0 | 0 | -22 | -4 | -20 | -101 | -92 | -191 | -174 | -194 |
| Net Investments | 0 | 0 | 0 | 0 | 0 | -51 | 29 | 23 | 2 | -277 |
| Others ⓘ | 0 | 0 | 1 | -1 | -5 | 33 | 4 | 2 | 0 | 1 |
| Cash Flow From Financing Activityⓘ | 0 | 0 | 10 | -22 | -17 | -50 | 10 | 83 | -37 | 281 |
| Net Proceeds from Shares ⓘ | 0 | 0 | 7 | 2 | 5 | 0 | 0 | 0 | 0 | 381 |
| Net Proceeds from Borrowing ⓘ | 0 | 0 | 0 | 0 | 0 | -16 | -29 | 48 | 2 | -84 |
| Interest Paid ⓘ | 0 | 0 | 0 | 0 | 0 | -12 | -25 | -7 | -12 | -13 |
| Dividend Paid ⓘ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -12 |
| Others ⓘ | 0 | 0 | 4 | -25 | -22 | -23 | 64 | 42 | -27 | 9 |
| Net Cash Flow ⓘ | 0 | 0 | -1 | 1 | -2 | 0 | 1 | -3 | 0 | 1 |
| PARTICULARS | Mar'12 | Mar'13 | Mar'14 | Mar'15 | Mar'16 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
| Ratios | ||||||||||
| ROE (%) | 11.21 | -18.91 | 6.73 | 22.17 | 16.39 | 23.19 | 14.36 | 19.86 | 23.5 | 18.73 |
| ROCE (%) | 15.34 | 8.27 | 11.36 | 15.26 | 15.24 | 23.88 | 17.46 | 21.81 | 26.18 | 22.7 |
| Asset Turnover Ratio | 0.81 | 0.77 | 0.88 | 0.98 | 1.06 | 0.95 | 0.71 | 0.86 | 0.98 | 0.85 |
| PAT to CFO Conversion(x) | 0 | N/A | 3 | 1.87 | 2.29 | 2.11 | 0.58 | 0.56 | 1 | 0.78 | Working Capital Days |
| Receivable Days | 68 | 76 | 76 | 73 | 61 | 67 | 95 | 82 | 81 | 89 |
| Inventory Days | 81 | 80 | 69 | 70 | 65 | 49 | 62 | 65 | 54 | 53 |
| Payable Days | 79 | 135 | 130 | 106 | 85 | 55 | 54 | 39 | 30 | 32 |
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
Awards, accreditations or recognitions
History and milestones
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Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
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