Happy Forging Limited (HAPPYFORGE) AI Stock Analysis

• Market Cap: ₹100.28B
• Dividend Yield: 0.28%
• Average Volume (3M): 1.78K
• Price to Earnings (P/E): 36.9
• Beta (1Y): 1.01
• 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: ₹1,185.00 ▲(1.26% Upside)

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

High Profitability and Margins

Sustained high gross and net margins indicate durable cost control and pricing power across product lines. This margin profile supports reinvestment in technology, funds strategic initiatives, and provides a buffer against input-cost shocks over the medium term.

Conservative Balance Sheet

Very low leverage and a strong equity base give the company financial flexibility to fund capex, withstand demand downturns, and pursue strategic investments without heavy reliance on external financing, supporting long-term resilience.

Improving Cash Generation

A material step-up in operating cash generation and large year-over-year free cash flow improvement reflect improving cash conversion and operational execution, enabling sustainable funding for working capital, capex, and strategic initiatives.

Negative Factors

Modest Revenue Growth

Single-digit top-line growth implies limited organic expansion and may constrain scale benefits. If revenue growth remains modest, the company must rely on margin expansion or M&A to materially increase earnings, which raises execution risk over the medium term.

Weak Free Cash Flow Conversion

A very low FCF-to-net-income ratio means reported profits are not translating into substantial free cash. This restricts durable capacity for dividends, debt paydown, or reinvestment despite accounting profitability, posing a structural liquidity constraint.

End‑market Cyclicality

Concentration in highly cyclical end markets exposes volumes and utilization to economic swings. Structural demand variability in automotive, aerospace, and construction can lead to recurring margin pressure and capital underutilization across economic cycles.

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: Negative
• 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 1080.02, above the 50-day MA of 1073.16, and above the 200-day MA of 966.39, indicating a neutral trend. The MACD of -14.25 indicates Positive momentum. The RSI at 48.72 is Neutral, neither overbought nor oversold. The STOCH value of 52.31 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	₹33.14B	19.69	―	―	-7.82%	5.33%
MMFL	72 Outperform	₹19.72B	20.64	―	1.07%	-4.47%	-17.62%
HAPPYFORGE	69 Neutral	₹100.28B	36.93	―	0.28%	3.57%	4.74%
SANSERA	67 Neutral	₹108.12B	43.26	―	0.19%	4.56%	14.68%
TIRUPATIFL	60 Neutral	₹4.01B	72.61	―	―	-0.94%	-48.46%
HILTON	56 Neutral	₹981.22M	10.87	―	―	27.13%	63.22%
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.