NSE: HAPPYFORGE · BSE: 544057 · ISIN INE330T01021
Happy Forgings Limited stock analysis
Happy Forgings Limited ranks #348 in the TickerSutra evidence-ranked universe with a score of 66/100 and 87% data confidence. The latest captured fundamentals show ROCE of 18.0%, quarterly sales growth of 27.0% and quarterly profit growth of 39.2%.Watchlist candidate
INVESTMENT EVIDENCE
What supports—and challenges—the thesis
Evidence in favour
- Low debt/equity of 0.16×
- Strong CFO/EBITDA of 0.94×
- CWIP indicates an active capacity pipeline
- No promoter shares are reported as pledged
Risks and constraints
- Valuation is above 40× earnings
Still unresolved: Related-party exposure · Broad media sentiment
FINANCIAL TRAJECTORY
Recent operating history
| Period | Revenue | Operating profit | Net profit | Operating margin |
|---|---|---|---|---|
| 2022 | ₹860cr | ₹231cr | ₹142cr | 27.0% |
| 2023 | ₹1,197cr | ₹341cr | ₹209cr | 28.0% |
| 2024 | ₹1,358cr | ₹388cr | ₹243cr | 29.0% |
| 2025 | ₹1,409cr | ₹407cr | ₹267cr | 29.0% |
| 2026 | ₹1,546cr | ₹471cr | ₹302cr | 30.0% |
| TTM | ₹1,642cr | ₹510cr | ₹327cr | 31.0% |
EXCHANGE EVENT TRIGGERS
Latest corporate disclosures
MANAGEMENT COMMENTARY
Signals from filed documents
EBITDA for Q1 FY27 stood at Rs.141 crores, registering Y-o-Y growth of 39.3%. Expanding by approx 275 basis points, supported by operational leverage and our continuous focus on operational efficiencies. Profit after tax stood at Rs.91 crores for Q1, representing Y-o-Y growth of 39.2%.
Despite this, structural drivers such as government support through MSP , subsidies, and continued mechanisation of agriculture are expected to provide stability. Tractor OEMs are expected to maintain stable financial performance, supported by operating leverage, steady raw material costs, and healthy balance sheets. (Source: ICRA, Apr 2026) 74 The European tractor market remained under pr essure in 2025, reflecting
We have now successfully negotiated price revisions with OEMs and benefits from these revisions are expected to fully reflect in our P&L from Quarter 2 onwards. Our capacity expansion program also continues to progress as planned and remains aligned with the strong opportunities we see across our focus segments. These investments will support our future growth while further strengthening our value -added capabiliti e
This order book is largely driven by industrial and passenger vehicle programs and is predominantly export-oriented. At the same time, the quality of our order book continues to Happy Forging Limited August 05, 2026 Page 4 of 14 improve with high proportion of complex precision engineering , value-added products that command superior realizations and are expected to support further margin improvement while creating a
From an end -user perspective, the domestic construction equipment segment registered growth of almost 9% during the quarter, supported by healthy project awards, particularly across roads, highway, and other infrastructure segments. Export markets in the US and Europe also witnessed growth in construction equipment demand. Passenger vehicles now contributes around 8% to our revenue.
Happy Forging Limited August 05, 2026 Page 14 of 14 Ashish Garg: Thank you. To conclude, we are confident that our investments in innovation capacity and customer partnerships will drive sustained growth and value creation. With this, I would like to thank everyone for joining on the call.
34 Moving up the V alue Chain The upcoming infrastructure will enable the manufacturing of components weighing up to ~3.0 tonnes, representing a meaningful advancement in capability. This development marks a clear progression towards higher-value, complex products, supporting the Company’s ambition to move up the value chain. Leveraging Execution Str ength The Company’s approach is supported by str ong foundational c
In contrast, registrations of light-duty commercial vehicles (Classes 2-3), particularly cargo vans and pickup trucks, grew by nearly 9%, supported by expanding last-mile logistics, service applications and increasing preference for flexible, lower-commitment fleet assets. purchasing cycles, with fleet operators advancing procurement ahead of regulatory changes and moderating order activity thereafter. Looking ahead,
To mitigate such risks, the Company uses derivative financial instruments. The management and monitoring of these risks are carried out by the Treasury Team under the guidance and control of the management, in accordance with the Risk Management Policy for Currency and Inter est Rate Risk approved by the Board. The Company maintains an appropriate financial risk governance framework through well-defined policies and
HOW TO READ THIS PAGE
Evidence, freshness and limitations
What does the TickerSutra score mean?
The score ranks captured evidence across financial quality, growth, moat and margins, regulatory catalysts, governance, institutional trend and valuation comfort. It is a research-prioritization tool—not a buy recommendation or price target.
Which sources support this page?
Financial history, ownership and pledge data, NSE and BSE filings, annual reports and available earnings-call transcripts are combined here. Use the source trail and original exchange document before relying on a decision-critical fact.
Why can an item be unresolved?
Unresolved means the current captured source window did not provide enough evidence for that check. It does not establish that a risk or relationship is absent.
Maintained by TickerSutra Research · Snapshot updated 29 Sept 2026 · Read the methodology · Read the disclaimer
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