Happy Forging Limited (HAPPYFORGE) AI Stock Analysis

• Market Cap: ₹105.02B
• Dividend Yield: 0.28%
• Average Volume (3M): 1.78K
• Price to Earnings (P/E): 38.7
• Beta (1Y): 0.94
• Revenue Growth: 3.57%
• EPS Growth: 4.74%
• Country: IN
• Employees: 3,017
• Sector: Services
• Sector Strength: N/A
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 7.80
• Shares Outstanding: 94,327,920
• 10 Day Avg. Volume: 1,850
• 30 Day Avg. Volume: 1,780
• PEG Ratio: 4.64
• Price to Book (P/B): 4.03
• Price to Sales (P/S): 5.29
• P/FCF Ratio: 351.72
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ₹1,024.00 ▼(-12.50% Downside)

Happy Forging Limited's overall stock score is driven by its strong financial performance, characterized by robust profitability and a healthy balance sheet. However, the technical analysis indicates a neutral to slightly bearish trend, and the valuation suggests the stock is relatively expensive, which tempers the overall score.

Positive Factors

Strong Financial Health

The company's robust financial health, characterized by stable profitability and efficient asset utilization, supports its long-term operational stability and competitive advantage in the market.

Low Leverage

Low leverage indicates prudent financial management, reducing financial risk and increasing the company's ability to invest in growth opportunities without over-reliance on debt.

Improving Cash Flow

The marked improvement in free cash flow enhances liquidity, providing the company with greater flexibility to fund operations, invest in new projects, and return value to shareholders.

Negative Factors

Cash Flow Conversion

Despite improvements, the low free cash flow conversion rate suggests potential challenges in translating earnings into cash, which could impact liquidity and investment capacity.

Limited Revenue Growth

While positive, the modest revenue growth rate may indicate challenges in rapidly expanding market share, potentially limiting the company's ability to outpace competitors and capture new opportunities.

Cash Flow Enhancement Needed

The need for further enhancement in cash flow conversion highlights potential constraints in liquidity management, which could affect the company's ability to fund strategic initiatives and manage operational costs effectively.

Happy Forging Limited Business Overview & Revenue Model

Company Description

Happy Forgings Limited engages in the manufacture of forgings and related components in India. It offers heavy forged and machined products, including bicycle pedals, brake flanges, bushes, bull gears, camshafts, crankshafts, connecting rods, crown wheels, differential cases, front axle beams, steering knuckles, differential cases, semi-machined transmission parts, planetary carriers, pinion shafts, piston pins, ring gears, suspension brackets, and valve bodies. The company serves the manufacturers of heavy commercial vehicles, farm equipment, and off highway and industrial equipment, as well as machinery for oil and gas, aerospace, defense, power generation, railways, and wind turbine industries. It also exports its products to Brazil, Italy, Japan, Spain, Sweden, Thailand, Turkey, the United Kingdom, and the United States. The company was incorporated in 1979 and is based in Ludhiana, India.

How the Company Makes Money

HAPPYFORGE generates revenue primarily through the manufacturing and sale of forged metal components. The company operates a business-to-business (B2B) model, catering to large-scale industrial clients who require custom and standardized forged parts. Key revenue streams include long-term supply contracts with major automotive manufacturers, aerospace companies, and construction firms. HAPPYFORGE also leverages strategic partnerships with raw material suppliers to optimize production costs and enhance profit margins. Additionally, the company invests in research and development to innovate its product offerings, thereby attracting new clients and expanding its market share.

Happy Forging Limited Financial Statement Overview

Summary

Happy Forging Limited demonstrates strong financial health with stable profitability, efficient asset utilization, and improving cash flows. The company shows steady revenue growth and robust margins, reflecting a competitive position in the market. While the balance sheet is strong with low leverage, the cash flow conversion from net income has room for improvement.

Income Statement

Happy Forging Limited exhibits strong profitability with a consistent increase in gross profit margin and net profit margin over the years. The gross profit margin in 2025 was 58.0%, and the net profit margin reached 19.0%, indicating efficient cost management. The revenue growth rate from 2024 to 2025 was approximately 3.7%, showcasing steady growth. The EBIT and EBITDA margins were robust, highlighting operational efficiency.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.12, reflecting strong financial leverage management. The equity ratio stands at 83.5%, indicating a solid equity base relative to total assets. Return on equity (ROE) is impressive at 14.5%, demonstrating effective use of equity to generate profits.

Cash Flow

The cash flow statement shows a significant improvement in free cash flow, with a growth rate of 515.9% from 2024 to 2025, transitioning from negative to positive. The operating cash flow to net income ratio is 1.09, suggesting strong cash generation relative to net income. However, the free cash flow to net income ratio is lower at 0.08, indicating that while cash flow is improving, further enhancement is needed to strengthen liquidity.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	14.21B	14.09B	13.58B	11.61B	7.94B	5.85B
Gross Profit	8.29B	8.17B	7.36B	2.96B	3.48B	1.45B
EBITDA	4.39B	4.07B	4.01B	3.47B	2.37B	1.65B
Net Income	2.69B	2.67B	2.43B	2.09B	1.42B	864.48M
Balance Sheet
Total Assets	0.00	22.15B	18.86B	13.26B	11.30B	8.76B
Cash, Cash Equivalents and Short-Term Investments	604.41M	2.16B	1.22B	3.41M	14.60M	277.83M
Total Debt	0.00	2.28B	1.43B	2.19B	2.40B	1.53B
Total Liabilities	-18.50B	3.66B	2.73B	3.38B	3.42B	2.31B
Stockholders Equity	18.50B	18.50B	16.12B	9.88B	7.88B	6.45B
Cash Flow
Free Cash Flow	0.00	212.01M	-50.96M	348.70M	-1.11B	-418.11M
Operating Cash Flow	0.00	2.92B	1.89B	2.09B	802.94M	498.53M
Investing Cash Flow	0.00	-3.20B	-4.69B	-1.72B	-1.66B	-586.85M
Financing Cash Flow	0.00	401.73M	2.81B	-370.10M	825.20M	96.72M

Happy Forging Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1170.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HAPPYFORGE, the sentiment is Positive. The current price of 1170.3 is above the 20-day moving average (MA) of 1112.15, above the 50-day MA of 1062.75, and above the 200-day MA of 946.47, indicating a bullish trend. The MACD of 27.44 indicates Positive momentum. The RSI at 52.79 is Neutral, neither overbought nor oversold. The STOCH value of 51.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:HAPPYFORGE.

Happy Forging Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ROLEXRINGS	76 Outperform	₹33.50B	19.90	―	―	-7.82%	5.33%
MMFL	72 Outperform	₹19.37B	17.47	―	1.07%	-4.47%	-17.62%
HAPPYFORGE	69 Neutral	₹105.02B	38.68	―	0.28%	3.57%	4.74%
SANSERA	67 Neutral	₹113.11B	45.25	―	0.19%	4.56%	14.68%
HILTON	60 Neutral	₹1.08B	11.95	―	―	27.13%	63.22%
TIRUPATIFL	60 Neutral	₹4.28B	77.58	―	―	-0.94%	-48.46%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%

Happy Forging Limited Corporate Events

Happy Forgings Limited to Attend Investor Conference in Mumbai

Happy Forgings Limited has announced its participation in an upcoming Investor Conference, scheduled for December 17, 2025, in Mumbai. The company will engage in both one-on-one and group meetings organized by Dam Capital, focusing on discussions based on publicly available information. This initiative aligns with the company’s compliance with SEBI regulations and aims to enhance transparency with institutional investors.

Happy Forgings Limited Allots Shares to Employees

Happy Forgings Limited has announced the allotment of 23,651 equity shares to its employees under the company’s Employee Stock Options Scheme. This allotment will increase the company’s paid-up share capital, reflecting a strategic move to incentivize and retain talent, potentially enhancing employee satisfaction and company performance.

Happy Forgings Corrects Financial Results Intimation

Happy Forgings Limited issued a corrigendum to correct a typographical error in their previous board meeting intimation. The company clarified that the financial results for the quarter and half-year ended September 30, 2025, to be discussed in the upcoming board meeting, are unaudited, contrary to the earlier communication that mistakenly labeled them as audited. This correction ensures stakeholders are accurately informed about the nature of the financial results being reviewed.