Happy Forgings - Expanding Product Spectrum Augurs Well: Yes Securities

"NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Yes Securities Report.Highlights of Happy Forgings Ltd. plant visit and management interactionSound engineering capabilities, as reflected in Happy Forging’s rapid diversification and delivery of complex forged/ machined components to auto/industrial segments, has fetched significant market share gains. Focus on complex/critical parts and recent product additions will open up new opportunities: capability step-up from addition of 14 k ton press line (in Q3 FY23) helped expand product offerings from up to 90 kgs to complex parts up to 250 kg. Ongoing Brownfield expansion for 3.1 k ton (dedicated to PV), 6.3 k ton and 10 k ton press lines will help rebalance production and augment further capacity. New order wins in PV and industrials will help de-risk dependance on commercial vehicle/tractors (~73% of revenues). Further, Happy Forgings intends to work on light weight forgings to support growth. Structural demand drivers like opening of India-centric global supply chain and low revenue share of industrials and exports (versus peers) should help outperformance. Street has built in standalone revenue/Ebitda/adjusted profit after tax compound annual growth rate of 21%/24%/30.7%. Although execution and continued revenue diversification are critical success factors, we believe valuations at 24.2 times/18.9 times FY25/26 bloom standalone EPS partially price in the positives. Not rated..Click on the attachment to read the full report:.Chemplast Sanmar - Long-Term Contract In Custom Manufacturing Provides Confidence: ICICI Securities .DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Happy Forgings - Expanding Product Spectrum Augurs Well: Yes Securities

Sound engineering capabilities help rapid revenue diversification and market share gains

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

Happy Forgings - Expanding Product Spectrum Augurs Well: Yes Securities

Sound engineering capabilities help rapid revenue diversification and market share gains

Choose a plan

Follow Us

DOWNLOAD THE APP