Happy Forgings Limited (HFL) | Stock Updates

Happy Forgings makes major strides in passenger vehicles; details inside

As part of our strategic focus on expanding product company is looking to generate 10% of total revenue from passenger vehicles in future.

About the Order
Happy Forgings Limited (HFL), an engineering led manufacturer of complex and safety critical, heavy forged and high precision machined components in India in terms of forgings capacity has received an order from a leading Indian automobile manufacturer of passenger vehicles marking a significant milestone in its journey of expansion and growth.

The total size of the order is worth Rs 60-70 crore per annum for the period of six years starting from April 1, 2024 which makes total order size of Rs 400 crores. This order entails manufacturing and supply of fully machined components for the SUV segment. The order further endorses HFL’s capabilities in providing quality and high-precision value added machined products for BS6 applications.

With this order, the company will establish its presence in the passenger vehicles segment as it aims to diversify the sectoral revenue mix further both in domestic as well as exports markets. As of the 9MFY24 period, the company’s revenue mix stands as follows: commercial vehicles account for 41%, while non-automotive components represent 59%. Within the Non-Automotive Components category, Farm Equipment constitutes 32%, Off-Highway Vehicles make up 14%, and Industrial contributes 13%.

Company MD commented that the company anticipates that the passenger vehicles segment will make a meaningful contribution of up to 8-10% of the total revenues in the future.

Stock Performance
In the last trading session, the stock closed at Rs 967. Today it opened at Rs 978.10 and currently it is trading at 974.95, up by 0.82%. The company’s 52-week high stands at Rs 1087.85, while its 52-week low stands at Rs 917.10. Currently, the company boasts a market capitalisation of approximately Rs 9,100 crore.

About the company
The Company is one of the largest engineering led manufacturer of complex and safety critical, heavy forged and high precision machined components in India in terms of forgings capacity. The Company through its vertically integrated operations is engaged in engineering, process design, testing, manufacturing, and supply of a variety of components that are both margin accretive and value additive.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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Happy Forgings Secures Multi-Year Deal to Supply Brake Flanges for US Utility Vehicles; Shares Rally Over 7% Today

This deal marks HFL’s entry into the US Passenger Vehicles segment, expanding its exports, diversifying products, and broadening revenue globally.

Happy Forgings Limited (HFL) one of India’s foremost engineering-driven manufacturers, specializing in heavy-forged and high-precision machined components essential for safety-critical applications, has confirmed a significant order received by the company.

Order Details

As per the details, the company will be supplying Brake Flanges for passenger vehicles, including utility vehicles and pickup trucks, to a prominent global Tier-1 manufacturer specializing in automobile driveline components and systems. This agreement further solidifies the company’s standing as a trusted partner in delivering intricate and vital components for the automotive industry.

The delivery of these components is set to begin in the fourth quarter of the financial year 2026 or the first quarter of the financial year 2027, following the interim part approval process.

The total worth of the order is estimated to be between Rs 60 to Rs 70 crores per annum, with an approximate total value of Rs 500 crores spanning until December 2034.

This deal marks HFL’s venture into the US Passenger Vehicles segment, thereby bolstering its export portfolio, enriching its product range, and broadening its revenue streams across different geographical regions.

Share Performance

Today, the company’s shares commenced trading at Rs 939.05 per share, which is higher compared to the preceding day’s closing figure of Rs 904.60 per share. During the intraday trading session, the stock reached highs and lows of Rs 970.90 and Rs 934 respectively and finally concluded the day at Rs 942.50 per share representing a gain of 4.19% on the BSE.

The market capitalisation of the company stands at Rs 8878.81 crore. Additionally, the stock has delivered a return of around 13.32% in the last one month.

In terms of ownership, promoters hold 78.60%, while public investors hold 21.40%, as per the recent update.

Investors must keep this stock on their radar.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.