Happy Forging Limited (HAPPYFORGE) AI Stock Analysis

• Market Cap: ₹90.76B
• Dividend Yield: 0.31%
• Average Volume (3M): 1.47K
• Price to Earnings (P/E): 33.7
• Beta (1Y): 0.93
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 3,017
• Sector: Services
• Sector Strength: N/A
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 7.00
• Shares Outstanding: 94,286,010
• 10 Day Avg. Volume: 1,953
• 30 Day Avg. Volume: 1,473
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹1,029.00
• Price Target Upside: 6.90% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: ₹1,029.00 ▲(6.90% Upside)

Happy Forging Limited's strong financial performance is the most significant factor, reflecting stable profitability and efficient asset utilization. However, the technical analysis indicates neutral to bearish momentum, and the valuation suggests the stock is relatively expensive, which tempers the overall score.

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 2023	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	14.09B	14.09B	11.97B	13.58B	7.94B	5.49B
Gross Profit	8.17B	8.17B	6.45B	7.36B	3.48B	2.56B
EBITDA	4.33B	4.07B	3.47B	4.01B	2.37B	1.65B
Net Income	2.67B	2.67B	2.09B	2.43B	1.42B	864.48M
Balance Sheet
Total Assets	22.15B	22.15B	13.26B	18.86B	11.30B	8.76B
Cash, Cash Equivalents and Short-Term Investments	2.16B	2.16B	3.41M	1.17B	14.60M	277.83M
Total Debt	2.28B	2.28B	2.19B	1.43B	2.40B	1.53B
Total Liabilities	3.66B	3.66B	3.38B	2.73B	3.42B	2.31B
Stockholders Equity	18.50B	18.50B	9.88B	16.12B	7.88B	6.45B
Cash Flow
Free Cash Flow	0.00	212.01M	348.70M	-50.96M	-1.11B	-418.11M
Operating Cash Flow	0.00	2.92B	2.09B	1.89B	802.94M	498.53M
Investing Cash Flow	0.00	-3.20B	-1.72B	-4.69B	-1.66B	-586.85M
Financing Cash Flow	0.00	401.73M	-370.10M	2.81B	825.20M	96.72M

Happy Forging Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 962.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 962.6 is above the 20-day moving average (MA) of 919.74, above the 50-day MA of 937.96, and above the 200-day MA of 921.52, indicating a bullish trend. The MACD of 5.63 indicates Negative momentum. The RSI at 58.97 is Neutral, neither overbought nor oversold. The STOCH value of 85.01 is Negative, 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	72 Outperform	37.75B	21.79	16.23%	―	-7.01%	9.99%
MMFL	70 Outperform	15.75B	14.49	13.65%	1.23%	-4.47%	-17.62%
SANSERA	70 Outperform	92.69B	40.80	7.82%	0.22%	4.97%	3.33%
HAPPYFORGE	68 Neutral	₹90.76B	33.69		0.31%	―	―
TIRUPATIFL	56 Neutral	4.47B	61.84	7.34%	―	0.03%	-24.13%
HILTON	53 Neutral	1.21B	21.06	5.34%	―	4.60%	-7.17%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%

Happy Forging Limited Corporate Events

Happy Forgings Limited to Participate in Mumbai Investor Roadshow

Happy Forgings Limited has announced its participation in a Non-Deal Roadshow (NDR) organized by ICICI Securities, scheduled for September 17th and 18th, 2025, in Mumbai. The company’s officials will engage in one-on-one and group meetings with investors, discussing publicly available information without sharing any unpublished price-sensitive information. This initiative is part of their compliance with SEBI regulations and aims to enhance investor relations.

Happy Forgings Limited Launches ‘Saksham Niveshak’ Campaign

Happy Forgings Limited has announced the launch of a 100 Days Campaign called ‘Saksham Niveshak’ by the Investor Education and Protection Fund Authority. This campaign is aimed at educating and protecting investors, and the information has been disseminated through newspaper advertisements in ‘Financial Express’ and ‘Jag Bani.’ The initiative is expected to enhance investor awareness and engagement, potentially impacting the company’s relationship with its stakeholders and its positioning in the market.

Happy Forgings Limited Releases Q1 FY2026 Monitoring Agency Report

Happy Forgings Limited has released the Monitoring Agency report for the quarter ending June 30, 2025, as per SEBI regulations. The report, prepared by ICRA Limited, confirms that there were no comments from the Board of Directors, indicating a smooth compliance process. This announcement underscores the company’s commitment to regulatory compliance and transparency, potentially strengthening its position in the market and reassuring stakeholders.