Is Happy Forgings a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Happy Forgings Ltd is a average 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 Semi Strong which suggest that the price of Happy Forgings Ltd is likely to Rise-somewhat 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

Place order

Happy Forgings Share Price

₹946.70 15.30 1.64%
as on 26-Apr'24 16:01

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'11	Mar'12	Mar'13	Mar'14	Mar'15	Mar'16	Mar'20	Mar'21	Mar'22	Mar'23	TTM
ROCE % ⓘ	10.3%	10.3%	4.4%	8%	9.1%	11.5%	19.1%	12.7%	15.8%	19.3%	-
Value Creation Index ⓘ	-0.2	-0.2	-0.7	-0.4	-0.3	-0.2	0.4	-0.1	0.2	0.4	-
Growth Parameters ⓘ Growth Parameters Colour Code Guide ⓘ
Sales ⓘ	186	252	248	298	341	375	558	585	860	1,197	1,197
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	23.2	22.2
YoY Gr.	-	-29.8%	-264.1%	NA	89.8%	131.2%	309.8%	8.4%	62.8%	48.9%	-
BVPS (₹) ⓘ	7.6	8.9	7.3	8	10.2	16.6	62.4	72.1	88	110.4	218
Adj Net Profit ⓘ	8.1	5.7	-9.6	3.5	6.9	16.9	78.9	85.5	139	207	209
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 ⓘ

CAGR Colour Code Guide ⓘ

	9 Years	5 Years	3 Years	1 Years
Sales ⓘ	23%	28.5%	29%	39.1%
Adj EPS ⓘ	37.6%	90.2%	38%	48.9%
BVPSⓘ	34.6%	61.1%	21%	25.5%
Share Price	-	-	-	-

Key Financial Parameters ⓘ

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	23.3	13.5
Op. Profit Mgn % ⓘ	22.2	21.1	16.1	17.3	18.5	20	25.7	27.1	26.9	28.7	26.5
Net Profit Mgn % ⓘ	4.4	2.3	-3.9	1.2	2	4.5	14.1	14.6	16.2	17.3	17.4
Debt to Equity ⓘ	4.3	4.2	4.8	4.2	3.1	1.6	0.2	0.2	0.3	0.2	-
Working Cap Days ⓘ	185	171	183	169	163	150	162	223	180	157	0
Cash Conv. Cycle ⓘ	120	97	74	69	83	77	83	126	125	116	0

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 38.01%

Return on Equity has declined versus last 3 years average to 13.50%

Sales growth is not so good in last 4 quarters at 8.11%

Latest Financials - Happy Forgings Ltd.

	Standalone	Consolidated
TTM EPS (₹)	22.2	22.2
TTM Sales (₹ Cr.)	1,197	1,197
BVPS (₹.) ⓘ	218	211.8
Reserves (₹ Cr.) ⓘ	2,035	1,977
P/BV ⓘ	4.35	4.47
PE ⓘ	42.78	42.78

From the Market
52 Week Low / High (₹)	813.55 / 1087.85
All Time Low / High (₹)	813.55 / 1087.85
Market Cap (₹ Cr.)	8,928
Equity (₹ Cr.)	18.8
Face Value (₹)	2
Industry PE ⓘ	42.2

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

Price Calculator

Price Chart

Price to Earnings

Enterprise Value to EBIT

Price to Book-Value

Price to Sales

Dividend History

Analyst's Notes

This is a premium feature, Please click here to check our solutions.

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'11	Mar'12	Mar'13	Mar'14	Mar'15	Mar'16	Mar'20	Mar'21	Mar'22	Mar'23
Sales	186	252	248	298	341	375	558	585	860	1,197
Operating Expenses ⓘ	145	199	208	246	278	300	416	426	629	856
Manufacturing Costs	28	40	52	62	71	73	99	102	143	173
Material Costs	107	144	134	151	169	185	249	252	388	551
Employee Cost	4	9	14	19	19	23	49	49	69	88
Other Costs ⓘ	6	7	8	15	18	20	19	24	30	44
Operating Profit ⓘ	41	53	40	52	63	75	142	159	231	341
Operating Profit Margin (%)	22.2%	21.1%	16.1%	17.3%	18.5%	20.0%	25.5%	27.1%	26.8%	28.5%
Other Income ⓘ	2	3	1	1	9	2	7	6	6	6
Interest ⓘ	22	31	31	27	29	29	25	12	7	12
Depreciation ⓘ	13	16	18	21	26	28	28	36	38	54
Exceptional Items ⓘ	0	0	0	0	0	0	0	0	0	0
Profit Before Tax ⓘ	8	10	-8	5	17	20	96	117	192	280
Tax ⓘ	0	4	1	2	2	3	16	31	50	71
Profit After Tax	8	6	-10	3	15	17	80	86	142	209
PAT Margin (%)	4.4%	2.3%	-3.9%	1.2%	4.3%	4.5%	14.3%	14.8%	16.5%	17.4%
Adjusted EPS (₹)	1.3	0.9	-1.5	0.5	2.0	2.2	8.9	9.7	15.9	23.3
Dividend Payout Ratio (%)	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%

Balance Sheet

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'11	Mar'12	Mar'13	Mar'14	Mar'15	Mar'16	Mar'20	Mar'21	Mar'22	Mar'23
Equity and Liabilities
Shareholders Fund	47	55	47	57	76	131	558	645	788	988
Share Capital ⓘ	6	6	6	7	7	8	9	9	18	18
Reserves ⓘ	41	48	40	50	69	123	550	636	770	970
Minority Interest	0	0	0	0	0	0	0	0	0	0
Debt	174	197	223	227	214	184	105	150	236	193
Long Term Debt	99	118	171	172	157	135	54	30	74	58
Short Term Debt	75	79	52	55	56	49	51	120	162	134
Trade Payables	19	43	56	51	47	39	36	38	44	48
Others Liabilities ⓘ	88	69	34	55	45	56	64	41	62	98
Total Liabilities ⓘ	328	364	360	390	382	410	763	874	1,130	1,326
Fixed Assets
Gross Block	214	261	273	292	310	367	332	507	586	859
Accumulated Depreciation	27	43	61	82	108	135	57	92	130	181
Net Fixed Assetsⓘ	187	218	212	210	203	232	275	415	456	678
CWIP ⓘ	19	4	4	7	4	1	109	40	212	75
Investmentsⓘ	0	0	0	0	0	0	0	0	0	0
Inventories	59	65	56	70	76	73	76	122	184	170
Trade Receivables	50	55	60	78	74	67	138	166	222	308
Cash Equivalents	0	2	5	4	5	3	56	28	1	0
Others Assetsⓘ	14	19	22	21	20	33	109	104	54	95
Total Assets ⓘ	328	364	360	390	382	410	763	874	1,130	1,326

Cash Flow

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'14	Mar'15	Mar'16	Mar'20	Mar'21	Mar'22	Mar'23
Cash Flow From Operating Activity ⓘ	9	28	39	169	50	80	209
PBT ⓘ	5	17	20	96	117	192	280
Adjustment ⓘ	20	18	27	50	46	40	71
Changes in Working Capital ⓘ	-15	-3	-1	47	-79	-109	-78
Tax Paid ⓘ	-1	-3	-7	-25	-34	-43	-64
Cash Flow From Investing Activity ⓘ	-21	-5	-24	-119	-59	-166	-172
Capex	-22	-4	-20	-101	-92	-191	-174
Net Investments	0	0	0	-51	29	23	2
Others ⓘ	1	-1	-5	33	4	2	0
Cash Flow From Financing Activityⓘ	10	-22	-17	-50	10	83	-37
Net Proceeds from Shares ⓘ	7	2	5	0	0	0	0
Net Proceeds from Borrowing ⓘ	0	0	0	-16	-29	48	2
Interest Paid ⓘ	0	0	0	-12	-25	-7	-12
Dividend Paid ⓘ	0	0	0	0	0	0	0
Others ⓘ	4	-25	-22	-23	64	42	-27
Net Cash Flow ⓘ	-1	1	-2	0	1	-3	0

Finance Ratio

Standalone Basis Consolidated Basis

PARTICULARS	Mar'11	Mar'12	Mar'13	Mar'14	Mar'15	Mar'16	Mar'20	Mar'21	Mar'22	Mar'23
Ratios
ROE (%)	20.13	11.21	-18.91	6.73	22.17	16.39	23.19	14.36	19.86	23.5
ROCE (%)	13.08	15.34	8.27	11.36	15.26	15.24	23.88	17.46	21.81	26.18
Asset Turnover Ratio	0.68	0.81	0.77	0.88	0.98	1.06	0.95	0.71	0.86	0.97
PAT to CFO Conversion(x)	0	0	N/A	3	1.87	2.29	2.11	0.58	0.56	1
Working Capital Days
Receivable Days	78	68	76	76	73	61	67	95	82	81
Inventory Days	85	81	80	69	70	65	49	62	65	54
Payable Days	62	79	135	130	106	85	55	54	39	30

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 26-Apr-2024 16:01 is ₹946.7.

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 26-Apr-2024 16:01 the market cap of Happy Forgings stood at ₹8,927.8.

What is the P/E ratio of Happy Forgings?

The latest P/E ratio of Happy Forgings as of 26-Apr-2024 16:01 is 42.78.

What is the P/B ratio of Happy Forgings?

The latest P/B ratio of Happy Forgings as of 26-Apr-2024 16:01 is 4.35.

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

The 52-week high of Happy Forgings is ₹1,087.9 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 ₹1,197 ( 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.