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.