Happy Forgings Ltd logo

Happy Forgings Ltd

HAPPYFORGE NSE

Key Fundamentals

SmallcapCastings & ForgingsIndustrial Products
Market Cap
₹21,467 Cr
Volatility
High Risk
P/E Ratio
65.13
EBITDA
₹502 Cr
Return on Equity
14.17%
Debt to Equity
0.16
Book Value
₹225.49
EPS
₹25.77
52W High
₹2,207.8
52W Low
₹862.05

Insights

Beta

AI-extracted from concalls & annual reports · figures as reported, with sources

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48 extracted metrics + investor summaries across FY18–FY26.

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Tapetide Score

Data-driven rating, 0–100. How it works →

Technical Indicators

Key Insights

Weaknesses

2
  • Stock is trading at 9.75 times its book value
  • Dividend payout has been low at 12.9% of profits over last 3 years

Growth Rate

Revenue Growth
9.04% ↗
Net Income Growth
12.79% ↗
Cash Flow Change
52.11% ↗
ROE
-2.01% ↘
ROCE
-2.47% ↘
EBITDA Margin (Avg.)
3.55% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 5d ago
AI opinion · based on fundamentals
Risk high

Happy Forgings Ltd is a mid-cap industrial forging company with a market capitalization of approximately ₹19,200 crore, trading at a PE of 58.3x and a PB of 8.98x. FY26 revenue grew 9.8% YoY to ₹1,546 crore with EBITDA margins expanding to 30.4%, while Q1 FY27 showed acceleration with 27% revenue growth and 39% PAT growth. The stock has delivered 115% returns over the past year, reflecting premium valuations relative to its earnings growth trajectory.

Bull Case 8
  • Q1 FY27 revenue surged 27% YoY with PAT jumping 39%, indicating strong growth acceleration after a moderate FY26
  • EBITDA margin expanded to 31.3% in Q1 FY27 (up 275 bps YoY), demonstrating improving operational leverage and pricing power
  • Compounded profit CAGR of 28% over 5 years reflects consistent earnings compounding in a capital-intensive sector
  • Very low debt-to-equity ratio of 0.01x as of mid-2026, giving the company significant balance sheet headroom for capex and acquisitions
  • Secured ₹160 crore European industrial order, signaling export diversification and global competitiveness
  • Management guided 18% volume growth, supported by diversification into industrial, off-highway, and passenger vehicle segments
  • Compounded sales CAGR of 21% over 5 years shows sustained top-line momentum through multiple cycles
  • Gross profit margin expanded to 60.7% in Q1 FY27 (up 276 bps YoY), indicating favorable product mix and value-addition
Bear Case 8
  • Stock trades at 58.3x PE, which is elevated relative to the sector PE of ~67.6x and well above the 5-year profit CAGR of 28%, limiting margin of safety
  • Price-to-book ratio of 8.98x is extremely high for a capital-intensive forging business, implying significant growth expectations already priced in
  • FY26 full-year revenue growth decelerated to 9.8% YoY (from 21% 5-year CAGR), suggesting cyclical moderation in core segments
  • Dividend payout has been low at 12.9% of profits over the last 3 years with a yield of just 0.2%, offering minimal income to shareholders
  • ROE declined to 15% in the last year from a 5-year average of 18%, indicating diminishing returns on incremental capital deployed
  • TTM sales growth of 16% lags the 115% stock price appreciation over 1 year, suggesting valuation has run ahead of fundamentals
  • Q1 FY26 showed only 3.6% YoY growth in both revenue and EBITDA, highlighting vulnerability to quarterly demand fluctuations
  • 3-year compounded sales CAGR of just 9% is modest for a stock commanding near-60x earnings multiple

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 20h ago
Positives 3
  • Record Q1FY27 revenue, PAT up 39% Aug 4

    Happy Forgings reported record Q1FY27 revenue of ₹449 crore (up 27% YoY) with PAT surging 39.2% to ₹91.6 crore and EBITDA margin above 30%.

  • Strong volume growth outlook ahead Aug 5

    Management expects strong volume growth for the current year while maintaining EBITDA margins at FY2026 levels, with possibility of further margin improvement beyond FY2026.

  • ₹4 dividend, key directors reappointed Jul 27

    47th AGM approved ₹4 per share final dividend for FY26 and reappointed MD Ashish Garg and WTD Megha Garg, signalling leadership continuity.

Neutral 3
  • Analyst meet scheduled Aug 14 Aug 11

    Happy Forgings will hold investor meetings in Mumbai on August 14, 2026, organized by Equirus Securities, covering publicly available information.

  • Q1FY27 earnings call recording posted Aug 5

    Audio recording of the August 5, 2026 earnings conference call discussing quarter ended June 30, 2026 results made available on company website.

  • Q1FY27 earnings call announced Jul 28

    Company scheduled earnings conference call for August 5, 2026 to discuss financial and operational performance for the quarter ended June 30, 2026.

TL;DR: Happy Forgings is delivering strong execution with record quarterly revenue, robust 39% profit growth, and healthy 30%+ EBITDA margins in Q1FY27. No material headwinds are visible in the recent news flow. Management guidance for continued volume growth with stable-to-improving margins suggests the positive momentum is likely to sustain through FY27.

Quarterly Results

  Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026
Sales
330
343
342
343
341
361
354
352
354
377
391
424
449
Expenses
230
249
247
246
244
256
253
250
253
262
271
291
309
Operating Profit
100
94
95
97
98
105
101
102
101
116
120
133
141
OPM %
30%
27%
28%
28%
29%
29%
29%
29%
29%
31%
31%
31%
31%
Other Income
3
1
3
7
8
13
7
10
10
6
8
6
11
Interest
3
4
4
1
1
2
2
2
2
2
2
4
3
Depreciation
15
16
17
16
18
20
19
20
21
22
22
25
26
PBT
85
74
78
87
86
97
87
90
89
99
104
111
123
Tax %
25%
25%
25%
25%
26%
27%
26%
24%
26%
26%
24%
25%
25%
Net Profit
64
55
58
66
64
71
65
68
66
73
79
84
91
EPS in Rs
7.16
6.17
6.15
6.98
6.77
7.58
6.85
7.18
6.97
7.79
8.37
8.86
9.69
Figures in ₹ Crores

Profit & Loss

  Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026TTM
Sales
585
860
1,197
1,358
1,409
1,546
1,642
Expenses
426
629
856
971
1,002
1,076
1,132
Operating Profit
159
231
341
388
407
471
510
OPM %
27%
27%
28%
29%
29%
30%
31%
Other Income
6
6
6
13
37
31
32
Interest
12
7
12
12
8
10
11
Depreciation
36
38
54
65
77
89
95
PBT
117
192
280
324
360
402
436
Tax %
26%
26%
25%
25%
26%
25%
—
Net Profit
86
142
209
243
267
302
327
EPS in Rs
966
15.9
23.32
25.79
28.38
31.97
34.71
Div. Payout %
0%
0%
6%
16%
11%
13%
—
Figures in ₹ Crores

Balance Sheet

  Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
9
18
18
19
19
19
Reserves
636
770
970
1,594
1,831
2,109
Borrowings
153
240
219
143
228
330
Other Liabilities
76
102
119
130
138
175
Total Liabilities
874
1,130
1,326
1,886
2,215
2,633
Fixed Assets
415
456
678
744
908
1,108
CWIP
40
212
75
127
123
237
Investments
0
0
0
0
80
237
Other Assets
419
461
573
1,016
1,105
1,050
Total Assets
874
1,130
1,326
1,886
2,215
2,633
Figures in ₹ Crores

Cash Flow

  Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
60
80
209
189
292
445
Investing
-59
-166
-172
-470
-320
-497
Financing
0
83
-37
281
40
65
Net Cash Flow
1
-3
0
1
12
13
Free Cash Flow
-32
-111
35
-5
12
-16
CFO/OP
59
53
80
71
92
114
Figures in ₹ Crores

Ratios

  Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
103
94
94
96
110
93
Inventory Days
176
173
112
137
143
134
Days Payable
55
42
32
34
28
34
Cash Conversion Cycle
225
226
175
199
226
193
Working Capital Days
82
76
71
102
97
77
ROCE %
—
22%
26%
23%
19%
18%

Shareholding Pattern

As of Jun 2026
Promoters 78.46%
DIIs 15.54%
Public 3.35%
FIIs 1.88%
Others 0.78%
Total 100.01%
  Aug 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026
Promoters
88.24%
78.60%
78.60%
78.60%
78.60%
78.60%
78.57%
78.54%
78.52%
78.50%
78.48%
78.46%
FIIs
0.00%
0.00%
1.12%
2.24%
2.28%
2.28%
2.19%
2.17%
2.02%
1.84%
1.73%
1.88%
DIIs
0.00%
4.00%
16.93%
16.69%
17.14%
17.06%
17.07%
16.98%
17.01%
16.73%
16.48%
15.54%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
0.00%
6.26%
2.98%
2.21%
1.78%
1.83%
1.89%
1.98%
2.06%
2.46%
2.79%
3.35%
Others
11.76%
11.13%
0.37%
0.26%
0.20%
0.22%
0.28%
0.34%
0.39%
0.47%
0.53%
0.78%
No. of Shareholders
8
2,51,941
93,587
74,090
65,376
64,982
64,670
63,790
61,075
61,484
57,815
64,341

Documents

Frequently Asked Questions about Happy Forgings Ltd

What does Happy Forgings Ltd do?
Incorporated in July 1979, Happy Forgings Limited is an Indian manufacturer specializing in designing and manufacturing heavy forgings and high-precision machined components.[1]
Where is Happy Forgings Ltd (HAPPYFORGE) listed?
Happy Forgings Ltd is listed on the Indian stock exchanges. It is listed on NSE: HAPPYFORGE and BSE: 544057. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Happy Forgings Ltd belong to?
Happy Forgings Ltd operates in the Industrial Products sector within the Castings & Forgings industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Happy Forgings Ltd?
Happy Forgings Ltd has a market capitalisation of approximately ₹21466.62 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of Happy Forgings Ltd?
The Price-to-Earnings (PE) ratio of Happy Forgings Ltd is 65.13. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Happy Forgings Ltd?
Over the past 52 weeks, Happy Forgings Ltd has traded between a low of ₹862.05 and a high of ₹2,207.8. This range helps investors understand the stock's price volatility and recent trading levels.
Does Happy Forgings Ltd pay dividends?
Yes, Happy Forgings Ltd has a dividend yield of 0.18%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Happy Forgings Ltd?
Happy Forgings Ltd has a Return on Equity (ROE) of 14.17%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Happy Forgings Ltd on Tapetide?
On Tapetide, you can view Happy Forgings Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Incorporated in July 1979, Happy Forgings Limited is an Indian manufacturer specializing in designing and manufacturing heavy forgings and high-precision machined components.[1]

Website happyforgingsltd.com
CEO Mr. Paritosh Kumar Garg
Employees 3,171
Listed 2023-12-27
Face Value ₹ 2
Issued Size 9,43,27,921

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