Happy Forgings - Growth-Centric Capability Expansion: 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.Happy Forgings Ltd.'s management value proposition:significant market share gains from Happy Forgings’ best-in-class engineering capabilities, marked by rapid diversification and delivery of complex forged/machined components to auto/industrial segments Constant focus on complex/critical parts and recent product additions to unlock new avenues: capability step-up from addition of 14k ton press line (in Q3 FY23) helped expand product offerings from up to 90kgs to complex parts up to 250kg. Brownfield capacity expansion projects on track in FY25; ramp up of 14k-ton press line for front axle beams (expected run rate for FY26 ~50k units) and large crankshafts. Further, a new 6.3k-ton press lines in Q2 FY25, focused on farm and passenger vehicle, is under trials. In FY26, another 10k-ton press line will help rebalance production and augment capacity.Indicative order book of ~Rs 6.5 billion-7 billion of which ~Rs 1.5 billion for PVs, ~Rs 2.5 billion for industrial, and ~Rs 2.5 billion for commercial vehicle (of which ~90% orders are for machining). .New order wins in PV and industrials will help de-risk dependance on CV/tractors (~73% of revenues). Structural demand drivers like opening of Indiacentric global supply chain, and low revenue share of industrials and exports (versus peers) should trigger outperformance. The street has built in revenue/Ebitda/adjusted profit after tax compound annual growth rate of 18.8%/21.3%/28.7% for FY24-26E. Although execution and sustained revenue diversification are key success factors, we believe valuations at 37.3 times/26.7 times/20.6 times FY25/26/27 bloom standalone EPS and partially price in the positives. Not rated..Click on the attachment to read the full report:.Ipca Labs - At An Inflexion Point: Motilal Oswal.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 - Growth-Centric Capability Expansion: Yes Securities

With installation of 14,000 tonnes press line in Q3 FY23, the company has experienced a major influx of new order wins from the Industrial segment, says the brokerage.

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Happy Forgings - Growth-Centric Capability Expansion: Yes Securities

With installation of 14,000 tonnes press line in Q3 FY23, the company has experienced a major influx of new order wins from the Industrial segment, says the brokerage.

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