Happy Forgings
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Happy Forgings is navigating a pivotal growth phase, driven by management's strategic focus on high-precision, heavy-forged components, which positions the company to capitalize on increasing demand from the automotive and energy sectors. Recent earnings calls highlight a robust order book of INR 9.5 billion and sustained EBITDA margins above 30%, reflecting operational momentum and effective cost management. Vista's financial outlook anticipates accelerating revenue growth, supported by the company's disciplined capital allocation and expansion into export markets. However, potential headwinds from geopolitical risks and input cost inflation warrant caution. The industry context remains favorable, with improving pricing power and a projected CAGR of 34.72%, enhancing Happy Forgings' competitive position. Over the next 12-24 months, key opportunities include scaling heavy-forging capabilities and diversifying product offerings, while watchpoints include managing external risks and maintaining margin resilience amidst fluctuating raw material prices
Why We Like This Stock
- Strong order book of INR 9.5 billion supports revenue growth and operational momentum
- Strategic pivot towards high-precision components enhances competitive positioning and margin potential
- Disciplined capital allocation and expansion into export markets provide avenues for long-term value creation
Things To Watch Out For
- Geopolitical risks and input cost inflation may impact margins and operational efficiency
- The capital-intensive nature of operations poses risks related to qualification cycles with global OEMs
- Potential demand softness in Western markets could affect revenue stability
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,358 | 1,409 | 1,546 | 1,746 | 2,011 |
| Profit Before Tax (Cr.) | 324 | 360 | 402 | 483 | 552 |
| PBT Margin | 23.9% | 25.6% | 2600.3% | 27.7% | 27.4% |
| Net Profit (Cr.) | 249 | 275 | 311 | 373 | 426 |
| Earnings Per Share | 26.4 | 29.2 | 32.9 | 39.5 | 45.1 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| ICICI Securities | ▲ Buy | 2,200 | 06-Aug-2026 |
| Motilal Oswal | ▲ Buy | 2,095 | 06-Aug-2026 |
Company Overview
Show Company Profile
Happy Forgings Limited manufactures and sells forgings and related components in India and internationally. The company offers crankshafts; differential cases; front axle beams and steering knuckles; railway parts, including camshafts, connecting rods, piston pins, spacers, and others; brake flanges and suspension brackets; transmission parts, such as shafts and spindles, crown wheels and pinions, rings, and connecting rods. It also offers windmill application products, including planet carrier, pinion shaft, and housing; oil and gas component, such as valve body; and bicycle pedals. It serves the original equipment manufacturers, manufacturers of commercial and passenger vehicles, farm equipment, and off highway and industrial equipment, as well as machinery for oil and gas, aerospace, power generation, railways, and wind turbine industries. Happy Forgings Limited was incorporated in 1979 and is based in Ludhiana, India.