Happy Forgings Ltd: Intrinsic Value & Share Price Analysis

Share Price and Basic Stock Data

Last Updated: June 7, 2025, 2:34 am

Market Cap	9,100 Cr.
Current Price	965
High / Low	1,300/716
Stock P/E	34.0
Book Value	196
Dividend Yield	0.41 %
ROCE	19.2 %
ROE	15.5 %
Face Value	2.00
PEG Ratio	-0.67

Stock P/E, Current Price, and Intrinsic Value Over Time

Stock P/E Current Price Intrinsic Value

View Share Price Target for Happy Forgings Ltd

Competitors of Happy Forgings Ltd

Stock Name ⇩	Market Cap ⇩	Current Price ⇩	High / Low ⇩	Stock P/E ⇩	Book Value ⇩	Dividend Yield ⇩	ROCE ⇩	ROE ⇩	Face Value ⇩
Happy Forgings Ltd	9,100 Cr.	965	1,300/716	34.0	196	0.41 %	19.2 %	15.5 %	2.00
EL Forge Ltd	46.5 Cr.	22.9	44.4/18.0	21.5	12.2	0.00 %	11.2 %	9.14 %	10.0
CIE Automotive India Ltd	16,865 Cr.	445	628/357	21.2	173	1.57 %	16.6 %	13.2 %	10.0
Amforge Industries Ltd	12.6 Cr.	8.76	15.5/7.26	26.8	9.12	0.00 %	6.46 %	3.64 %	2.00
Tirupati Forge Ltd	446 Cr.	37.7	72.9/17.0	56.8	9.05	0.00 %	12.4 %	10.0 %	2.00
Industry Average	11,428.78 Cr	333.32		87.18	154.07	0.31%	9.68%	9.63%	5.86

All Competitor Stocks of Happy Forgings Ltd

Quarterly Result

Metric	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025
Sales	294	302	330	343	342	343	341	361	354	352
Expenses	221	217	230	249	247	246	244	256	253	250
Operating Profit	73	86	100	94	95	97	98	105	101	102
OPM %	25%	28%	30%	27%	28%	28%	29%	29%	29%	29%
Other Income	2	2	3	1	3	7	8	13	7	10
Interest	3	5	3	4	4	1	1	2	2	2
Depreciation	16	14	15	16	17	16	18	20	19	20
Profit before tax	56	68	85	74	78	87	86	97	87	90
Tax %	26%	25%	25%	25%	25%	25%	26%	27%	26%	24%
Net Profit	42	51	64	55	58	66	64	71	65	68
EPS in Rs	4.65	5.67	7.16	6.17	6.15	6.98	6.78	7.58	6.85	7.19

Last Updated: May 31, 2025, 5:46 am

Below is a detailed analysis of the quarterly data for Happy Forgings Ltd based on the most recent figures (Mar 2025) and their trends compared to the previous period:

For Sales, as of Mar 2025, the value is 352.00 Cr.. The value appears to be declining and may need further review. It has decreased from 354.00 Cr. (Dec 2024) to 352.00 Cr., marking a decrease of 2.00 Cr..
For Expenses, as of Mar 2025, the value is 250.00 Cr.. The value appears to be improving (decreasing) as expected. It has decreased from 253.00 Cr. (Dec 2024) to 250.00 Cr., marking a decrease of 3.00 Cr..
For Operating Profit, as of Mar 2025, the value is 102.00 Cr.. The value appears strong and on an upward trend. It has increased from 101.00 Cr. (Dec 2024) to 102.00 Cr., marking an increase of 1.00 Cr..
For OPM %, as of Mar 2025, the value is 29.00%. The value remains steady. There is no change compared to the previous period (Dec 2024) which recorded 29.00%.
For Other Income, as of Mar 2025, the value is 10.00 Cr.. The value appears strong and on an upward trend. It has increased from 7.00 Cr. (Dec 2024) to 10.00 Cr., marking an increase of 3.00 Cr..
For Interest, as of Mar 2025, the value is 2.00 Cr.. The value remains steady. There is no change compared to the previous period (Dec 2024) which recorded 2.00 Cr..
For Depreciation, as of Mar 2025, the value is 20.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 19.00 Cr. (Dec 2024) to 20.00 Cr., marking an increase of 1.00 Cr..
For Profit before tax, as of Mar 2025, the value is 90.00 Cr.. The value appears strong and on an upward trend. It has increased from 87.00 Cr. (Dec 2024) to 90.00 Cr., marking an increase of 3.00 Cr..
For Tax %, as of Mar 2025, the value is 24.00%. The value appears to be improving (decreasing) as expected. It has decreased from 26.00% (Dec 2024) to 24.00%, marking a decrease of 2.00%.
For Net Profit, as of Mar 2025, the value is 68.00 Cr.. The value appears strong and on an upward trend. It has increased from 65.00 Cr. (Dec 2024) to 68.00 Cr., marking an increase of 3.00 Cr..
For EPS in Rs, as of Mar 2025, the value is 7.19. The value appears strong and on an upward trend. It has increased from 6.85 (Dec 2024) to 7.19, marking an increase of 0.34.

Overall, while many items appear to show a positive trend, any significant downward movement warrant further investigation.

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: March 15, 2025, 3:16 am

Metric	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	TTM
Sales	550	750	558	585	860	1,197	1,358	1,400
Expenses	413	545	416	426	629	856	971	999
Operating Profit	137	205	142	159	231	341	388	402
OPM %	25%	27%	26%	27%	27%	28%	29%	29%
Other Income	4	1	7	6	6	6	13	35
Interest	22	23	25	12	7	12	12	6
Depreciation	23	29	28	36	38	54	65	73
Profit before tax	96	155	96	117	192	280	324	357
Tax %	39%	38%	17%	26%	26%	25%	25%
Net Profit	58	95	80	86	142	209	243	266
EPS in Rs	738.38	1,066.26	893.18	965.92	15.90	23.32	25.79	28.19
Dividend Payout %	-0%	-0%	-0%	-0%	-0%	6%	16%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024
YoY Net Profit Growth (%)	63.79%	-15.79%	7.50%	65.12%	47.18%	16.27%
Change in YoY Net Profit Growth (%)	0.00%	-79.58%	23.29%	57.62%	-17.93%	-30.92%

Happy Forgings Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 6 years from 2018-2019 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:	%
5 Years:	20%
3 Years:	18%
TTM:	4%

Compounded Profit Growth
10 Years:	%
5 Years:	27%
3 Years:	23%
TTM:	10%

Stock Price CAGR
10 Years:	%
5 Years:	%
3 Years:	%
1 Year:	-17%

Return on Equity
10 Years:	%
5 Years:	18%
3 Years:	18%
Last Year:	15%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 2:35 pm

Month	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Sep 2024
Equity Capital	8	9	9	9	18	18	19	19
Reserves	176	470	550	636	770	970	1,594	1,692
Borrowings	301	156	105	150	240	219	143	148
Other Liabilities	92	85	100	79	102	119	130	160
Total Liabilities	576	719	763	874	1,130	1,326	1,886	2,019
Fixed Assets	285	291	275	415	456	678	744	894
CWIP	9	46	109	40	212	75	127	69
Investments	0	30	0	0	0	0	0	0
Other Assets	282	352	378	419	461	573	1,015	1,057
Total Assets	576	719	763	874	1,130	1,326	1,886	2,019

Below is a detailed analysis of the balance sheet data for Happy Forgings Ltd based on the most recent figures (Sep 2024) and their trends compared to the previous period:

For Equity Capital, as of Sep 2024, the value is 19.00 Cr.. The value remains steady. There is no change compared to the previous period (Mar 2024) which recorded 19.00 Cr..
For Reserves, as of Sep 2024, the value is 1,692.00 Cr.. The value appears strong and on an upward trend. It has increased from 1,594.00 Cr. (Mar 2024) to 1,692.00 Cr., marking an increase of 98.00 Cr..
For Borrowings, as of Sep 2024, the value is 148.00 Cr.. The value appears to be increasing, which may not be favorable. Additionally, since Reserves exceed Borrowings, this is considered a positive sign. It has increased from 143.00 Cr. (Mar 2024) to 148.00 Cr., marking an increase of 5.00 Cr..
For Other Liabilities, as of Sep 2024, the value is 160.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 130.00 Cr. (Mar 2024) to 160.00 Cr., marking an increase of 30.00 Cr..
For Total Liabilities, as of Sep 2024, the value is 2,019.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 1,886.00 Cr. (Mar 2024) to 2,019.00 Cr., marking an increase of 133.00 Cr..
For Fixed Assets, as of Sep 2024, the value is 894.00 Cr.. The value appears strong and on an upward trend. It has increased from 744.00 Cr. (Mar 2024) to 894.00 Cr., marking an increase of 150.00 Cr..
For CWIP, as of Sep 2024, the value is 69.00 Cr.. The value appears to be declining and may need further review. It has decreased from 127.00 Cr. (Mar 2024) to 69.00 Cr., marking a decrease of 58.00 Cr..
For Investments, as of Sep 2024, the value is 0.00 Cr.. The value remains steady. There is no change compared to the previous period (Mar 2024) which recorded 0.00 Cr..
For Other Assets, as of Sep 2024, the value is 1,057.00 Cr.. The value appears strong and on an upward trend. It has increased from 1,015.00 Cr. (Mar 2024) to 1,057.00 Cr., marking an increase of 42.00 Cr..
For Total Assets, as of Sep 2024, the value is 2,019.00 Cr.. The value appears strong and on an upward trend. It has increased from 1,886.00 Cr. (Mar 2024) to 2,019.00 Cr., marking an increase of 133.00 Cr..

Notably, the Reserves (1,692.00 Cr.) exceed the Borrowings (148.00 Cr.), indicating a solid financial buffer.

Overall, while many items appear to show a positive trend, any significant downward movement or items where Borrowings exceed Reserves warrant further investigation.

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Mar 2025
Cash from Operating Activity +	136	169	50	80	209	189	292
Cash from Investing Activity +	-162	-119	-59	-166	-172	-469	-319
Cash from Financing Activity +	27	-50	10	83	-37	281	39
Net Cash Flow	1	-0	1	-3	-0	1	12

Free Cash Flow

Month	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Free Cash Flow	-164.00	49.00	37.00	9.00	-9.00	122.00	245.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

Month	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	114	82	90	103	94	94	96
Inventory Days	111	106	111	176	173	112	137
Days Payable	48	30	53	55	42	32	34
Cash Conversion Cycle	177	158	148	225	226	175	199
Working Capital Days	123	106	94	157	146	120	141
ROCE %		32%	19%	18%	22%	26%	23%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Dec 2023	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025
Promoters	78.60%	78.60%	78.60%	78.60%	78.60%	78.57%
FIIs	2.06%	1.12%	2.24%	2.27%	2.28%	2.19%
DIIs	5.83%	16.92%	16.69%	17.14%	17.06%	17.07%
Public	13.50%	3.35%	2.47%	1.98%	2.05%	2.18%
No. of Shareholders	1,34,839	93,587	74,090	65,376	64,982	64,670

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund Name	No of Shares	AUM (%)	Amount Invested (Cr)	Previous Number of Shares	Previous Date	Percentage Change
Kotak Small Cap Fund - Regular Plan	1,597,648	0.8	125.7	1,594,891	2025-05-09 08:50:27	0.17%
DSP Small Cap Fund	700,000	0.39	55.08	708,095	2025-05-13 09:42:05	-1.14%
Aditya Birla Sun Life Flexi Cap Fund	424,215	0.15	33.38	333,286	2025-05-09 10:15:53	27.28%
HSBC Small Cap Fund - Regular Plan	385,125	0.21	30.3	385,125	2025-04-22 17:25:11	0%
Kotak Business Cycle Fund	293,176	0.93	23.07	N/A	N/A	N/A
Kotak Pioneer Fund	243,857	0.75	19.19	N/A	N/A	N/A
Aditya Birla Sun Life Business Cycle Fund	193,825	0.9	15.25	193,825	2025-04-22 17:25:11	0%
Edelweiss Recently Listed IPO Fund	150,000	1.41	11.8	280,409	2025-05-13 09:07:58	-46.51%
Aditya Birla Sun Life Manufacturing Equity Fund	142,035	1.03	11.18	142,035	2025-04-22 17:25:11	0%
HSBC Infrastructure Fund	89,190	0.31	7.02	N/A	N/A	N/A

ROCE / ROE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22
FaceValue	2.00	2.00	2.00
Basic EPS (Rs.)	26.78	23.32	15.90
Diluted EPS (Rs.)	26.75	23.32	15.90
Cash EPS (Rs.)	32.66	29.37	20.11
Book Value[Excl.RevalReserv]/Share (Rs.)	171.17	110.43	88.00
Book Value[Incl.RevalReserv]/Share (Rs.)	171.17	110.43	88.00
Revenue From Operations / Share (Rs.)	144.18	133.69	96.09
PBDIT / Share (Rs.)	42.56	38.74	26.47
PBIT / Share (Rs.)	35.68	32.68	22.26
PBT / Share (Rs.)	34.43	31.29	21.46
Net Profit / Share (Rs.)	25.79	23.32	15.90
NP After MI And SOA / Share (Rs.)	25.79	23.32	15.90
PBDIT Margin (%)	29.51	28.97	27.55
PBIT Margin (%)	24.75	24.44	23.16
PBT Margin (%)	23.88	23.40	22.32
Net Profit Margin (%)	17.88	17.44	16.54
NP After MI And SOA Margin (%)	17.88	17.44	16.54
Return on Networth / Equity (%)	15.06	21.11	18.06
Return on Capital Employeed (%)	20.44	27.34	22.51
Return On Assets (%)	12.88	15.73	12.59
Long Term Debt / Equity (X)	0.00	0.05	0.09
Total Debt / Equity (X)	0.08	0.22	0.30
Asset Turnover Ratio (%)	0.84	0.97	0.00
Current Ratio (X)	3.07	1.91	1.74
Quick Ratio (X)	2.14	1.25	0.98
Inventory Turnover Ratio (X)	3.20	3.10	0.00
Interest Coverage Ratio (X)	34.04	27.79	33.10
Interest Coverage Ratio (Post Tax) (X)	21.63	17.73	20.87
Enterprise Value (Cr.)	8392.35	0.00	0.00
EV / Net Operating Revenue (X)	6.18	0.00	0.00
EV / EBITDA (X)	20.93	0.00	0.00
MarketCap / Net Operating Revenue (X)	6.16	0.00	0.00
Price / BV (X)	5.19	0.00	0.00
Price / Net Operating Revenue (X)	6.16	0.00	0.00
EarningsYield	0.02	0.00	0.00

After reviewing the key financial ratios for Happy Forgings Ltd, here is a detailed analysis based on the latest available data and recent trends:

For FaceValue, as of Mar 24, the value is 2.00. This value is within the healthy range. There is no change compared to the previous period (Mar 23) which recorded 2.00.
For Basic EPS (Rs.), as of Mar 24, the value is 26.78. This value is within the healthy range. It has increased from 23.32 (Mar 23) to 26.78, marking an increase of 3.46.
For Diluted EPS (Rs.), as of Mar 24, the value is 26.75. This value is within the healthy range. It has increased from 23.32 (Mar 23) to 26.75, marking an increase of 3.43.
For Cash EPS (Rs.), as of Mar 24, the value is 32.66. This value is within the healthy range. It has increased from 29.37 (Mar 23) to 32.66, marking an increase of 3.29.
For Book Value[Excl.RevalReserv]/Share (Rs.), as of Mar 24, the value is 171.17. It has increased from 110.43 (Mar 23) to 171.17, marking an increase of 60.74.
For Book Value[Incl.RevalReserv]/Share (Rs.), as of Mar 24, the value is 171.17. It has increased from 110.43 (Mar 23) to 171.17, marking an increase of 60.74.
For Revenue From Operations / Share (Rs.), as of Mar 24, the value is 144.18. It has increased from 133.69 (Mar 23) to 144.18, marking an increase of 10.49.
For PBDIT / Share (Rs.), as of Mar 24, the value is 42.56. This value is within the healthy range. It has increased from 38.74 (Mar 23) to 42.56, marking an increase of 3.82.
For PBIT / Share (Rs.), as of Mar 24, the value is 35.68. This value is within the healthy range. It has increased from 32.68 (Mar 23) to 35.68, marking an increase of 3.00.
For PBT / Share (Rs.), as of Mar 24, the value is 34.43. This value is within the healthy range. It has increased from 31.29 (Mar 23) to 34.43, marking an increase of 3.14.
For Net Profit / Share (Rs.), as of Mar 24, the value is 25.79. This value is within the healthy range. It has increased from 23.32 (Mar 23) to 25.79, marking an increase of 2.47.
For NP After MI And SOA / Share (Rs.), as of Mar 24, the value is 25.79. This value is within the healthy range. It has increased from 23.32 (Mar 23) to 25.79, marking an increase of 2.47.
For PBDIT Margin (%), as of Mar 24, the value is 29.51. This value is within the healthy range. It has increased from 28.97 (Mar 23) to 29.51, marking an increase of 0.54.
For PBIT Margin (%), as of Mar 24, the value is 24.75. This value exceeds the healthy maximum of 20. It has increased from 24.44 (Mar 23) to 24.75, marking an increase of 0.31.
For PBT Margin (%), as of Mar 24, the value is 23.88. This value is within the healthy range. It has increased from 23.40 (Mar 23) to 23.88, marking an increase of 0.48.
For Net Profit Margin (%), as of Mar 24, the value is 17.88. This value exceeds the healthy maximum of 10. It has increased from 17.44 (Mar 23) to 17.88, marking an increase of 0.44.
For NP After MI And SOA Margin (%), as of Mar 24, the value is 17.88. This value is within the healthy range. It has increased from 17.44 (Mar 23) to 17.88, marking an increase of 0.44.
For Return on Networth / Equity (%), as of Mar 24, the value is 15.06. This value is within the healthy range. It has decreased from 21.11 (Mar 23) to 15.06, marking a decrease of 6.05.
For Return on Capital Employeed (%), as of Mar 24, the value is 20.44. This value is within the healthy range. It has decreased from 27.34 (Mar 23) to 20.44, marking a decrease of 6.90.
For Return On Assets (%), as of Mar 24, the value is 12.88. This value is within the healthy range. It has decreased from 15.73 (Mar 23) to 12.88, marking a decrease of 2.85.
For Long Term Debt / Equity (X), as of Mar 24, the value is 0.00. This value is below the healthy minimum of 0.2. It has decreased from 0.05 (Mar 23) to 0.00, marking a decrease of 0.05.
For Total Debt / Equity (X), as of Mar 24, the value is 0.08. This value is within the healthy range. It has decreased from 0.22 (Mar 23) to 0.08, marking a decrease of 0.14.
For Asset Turnover Ratio (%), as of Mar 24, the value is 0.84. It has decreased from 0.97 (Mar 23) to 0.84, marking a decrease of 0.13.
For Current Ratio (X), as of Mar 24, the value is 3.07. This value exceeds the healthy maximum of 3. It has increased from 1.91 (Mar 23) to 3.07, marking an increase of 1.16.
For Quick Ratio (X), as of Mar 24, the value is 2.14. This value exceeds the healthy maximum of 2. It has increased from 1.25 (Mar 23) to 2.14, marking an increase of 0.89.
For Inventory Turnover Ratio (X), as of Mar 24, the value is 3.20. This value is below the healthy minimum of 4. It has increased from 3.10 (Mar 23) to 3.20, marking an increase of 0.10.
For Interest Coverage Ratio (X), as of Mar 24, the value is 34.04. This value is within the healthy range. It has increased from 27.79 (Mar 23) to 34.04, marking an increase of 6.25.
For Interest Coverage Ratio (Post Tax) (X), as of Mar 24, the value is 21.63. This value is within the healthy range. It has increased from 17.73 (Mar 23) to 21.63, marking an increase of 3.90.
For Enterprise Value (Cr.), as of Mar 24, the value is 8,392.35. It has increased from 0.00 (Mar 23) to 8,392.35, marking an increase of 8,392.35.
For EV / Net Operating Revenue (X), as of Mar 24, the value is 6.18. This value exceeds the healthy maximum of 3. It has increased from 0.00 (Mar 23) to 6.18, marking an increase of 6.18.
For EV / EBITDA (X), as of Mar 24, the value is 20.93. This value exceeds the healthy maximum of 15. It has increased from 0.00 (Mar 23) to 20.93, marking an increase of 20.93.
For MarketCap / Net Operating Revenue (X), as of Mar 24, the value is 6.16. This value exceeds the healthy maximum of 3. It has increased from 0.00 (Mar 23) to 6.16, marking an increase of 6.16.
For Price / BV (X), as of Mar 24, the value is 5.19. This value exceeds the healthy maximum of 3. It has increased from 0.00 (Mar 23) to 5.19, marking an increase of 5.19.
For Price / Net Operating Revenue (X), as of Mar 24, the value is 6.16. This value exceeds the healthy maximum of 3. It has increased from 0.00 (Mar 23) to 6.16, marking an increase of 6.16.
For EarningsYield, as of Mar 24, the value is 0.02. This value is below the healthy minimum of 5. It has increased from 0.00 (Mar 23) to 0.02, marking an increase of 0.02.

Overall, while many metrics show healthy performance, any figures highlighted in red or significant downward trends warrant further investigation.

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Happy Forgings Ltd as of June 7, 2025 is: 829.72

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of June 7, 2025, Happy Forgings Ltd is Overvalued by 14.02% compared to the current share price 965.00

Intrinsic Value of Happy Forgings Ltd as of June 7, 2025 is: 409.23

Calculation basis:

Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of June 7, 2025, Happy Forgings Ltd is Overvalued by 57.59% compared to the current share price 965.00

Last 5 Year EPS CAGR: -50.68%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The stock has a high average ROCE of 20.00%, which is a positive sign. The company has higher reserves (857.25 cr) compared to borrowings (182.75 cr), indicating strong financial stability. The company has shown consistent growth in sales (413.25 cr) and profit (202.13 cr) over the years.	The stock has a high average Working Capital Days of 126.71, which may not be favorable. The stock has a high average Cash Conversion Cycle of 186.86, which may not be favorable.

Stock Analysis

Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Happy Forgings Ltd:
1. Net Profit Margin: 17.88%
  - Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
2. ROCE: 20.44% (Industry Average ROCE: 9.68%)
  - ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
3. ROE%: 15.06% (Industry Average ROE: 9.63%)
  - ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
4. Interest Coverage Ratio (Post Tax): 21.63
  - Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
5. Quick Ratio: 2.14
  - Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
6. Stock P/E: 34 (Industry average Stock P/E: 87.18)
  - Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
7. Total Debt / Equity: 0.08
  - Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
Stock Rating:

About the Company - Qualitative Analysis

Happy Forgings Ltd. is a Public Limited Listed company incorporated on 02/07/1979 and has its registered office in the State of Punjab, India. Company's Corporate Identification Number(CIN) is L28910PB1979PLC004008 and registration number is 004008. Currently Company is involved in the business activities of Forging, pressing, stamping and roll-forming of metal; powder metallurgy. Company's Total Operating Revenue is Rs. 1408.89 Cr. and Equity Capital is Rs. 18.85 Cr. for the Year ended 31/03/2025.

INDUSTRY	ADDRESS	CONTACT
Forgings	B-XXIX, 2254/1, Kanganwal Road, Ludhiana Punjab 141120	complianceofficer@happyforgingsltd.co.in http://www.happyforgingsltd.com

Management
Name	Position Held
Mr. Paritosh Kumar	Chairman & Managing Director
Mr. Ashish Garg	Managing Director
Mr. Narinder Singh Juneja	WholeTime Director & CEO
Ms. Megha Garg	Whole Time Director
Mr. Satish Sekhri	Independent Director
Mr. Vikas Giya	Independent Director
Mr. Atul Behari Lall	Independent Director
Ms. Rajeswari Karthigeyan	Independent Director
Mr. Ravindra Pisharody	Independent Director

FAQ

What is the intrinsic value of Happy Forgings Ltd?

Happy Forgings Ltd's intrinsic value (as of 06 June 2025) is ₹829.72 — 14.02% lower the current market price of 965.00, indicating overvalued. Calculated using the PE ratio method, this valuation considers the company's 9,100 Cr. market cap, FY2025-2026 high/low of ₹1,300/716, reserves of 1,692 Cr, and liabilities of 2,019 Cr.

What is the Market Cap of Happy Forgings Ltd?

The Market Cap of Happy Forgings Ltd is 9,100 Cr..

What is the current Stock Price of Happy Forgings Ltd as on 06 June 2025?

The current stock price of Happy Forgings Ltd as on 06 June 2025 is 965.

What is the High / Low of Happy Forgings Ltd stocks in FY 2025-2026?

In FY 2025-2026, the High / Low of Happy Forgings Ltd stocks is ₹1,300/716.

What is the Stock P/E of Happy Forgings Ltd?

The Stock P/E of Happy Forgings Ltd is 34.0.

What is the Book Value of Happy Forgings Ltd?

The Book Value of Happy Forgings Ltd is 196.

What is the Dividend Yield of Happy Forgings Ltd?

The Dividend Yield of Happy Forgings Ltd is 0.41 %.

What is the ROCE of Happy Forgings Ltd?

The ROCE of Happy Forgings Ltd is 19.2 %.

What is the ROE of Happy Forgings Ltd?

The ROE of Happy Forgings Ltd is 15.5 %.

What is the Face Value of Happy Forgings Ltd?

The Face Value of Happy Forgings Ltd is 2.00.