Happy Forging Limited (HAPPYFORGE) AI Stock Analysis

• Market Cap: ₹84.06B
• Dividend Yield: 0.34%
• Average Volume (3M): 1.35K
• Price to Earnings (P/E): 31.2
• Beta (1Y): 0.90
• 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: 1,400
• 30 Day Avg. Volume: 1,354
• 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: 15.42% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: ₹1,029.00 ▲(15.42% Upside)

Happy Forging Limited's strong financial performance is the most significant factor, reflecting robust profitability and a solid balance sheet. However, the technical analysis indicates potential bearish trends, and the valuation suggests the stock is relatively expensive, which tempers the overall score.

Happy Forging Limited Business Overview & Revenue Model

Company Description

Happy Forging Limited (HAPPYFORGE) is a leading manufacturer in the metal forging industry, specializing in the production of high-quality forged components for various sectors, including automotive, aerospace, construction, and energy. The company is renowned for its precision engineering and advanced manufacturing techniques, offering a wide range of products such as forged gears, shafts, and other critical components that meet stringent industry standards.

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

Happy Forging Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 891.55
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HAPPYFORGE, the sentiment is Negative. The current price of 891.55 is below the 20-day moving average (MA) of 943.69, below the 50-day MA of 948.56, and below the 200-day MA of 933.02, indicating a bearish trend. The MACD of -10.96 indicates Positive momentum. The RSI at 38.56 is Neutral, neither overbought nor oversold. The STOCH value of 17.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	₹37.12B	21.43		―	-7.01%	9.98%
HAPPYFORGE	68 Neutral	₹84.06B	31.20		0.34%	―	―
SANSERA	68 Neutral	₹78.82B	34.48		0.24%	4.97%	3.32%
MMFL	67 Neutral	₹15.25B	13.75		1.27%	-4.47%	-17.62%
Sector *	56 Neutral	$13.94B	13.68	10.03%	0.85%	7.13%	-12.93%
TIRUPATIFL	56 Neutral	₹4.57B	63.18		―	0.03%	-24.13%
HILTON	53 Neutral	₹1.22B	21.18		―	4.60%	-7.34%

Happy Forging Limited Corporate Events

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.