Happy Forgings Ltd (HAPPYFORGE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

AIA Engineering

Inv.& Prec.Cast.

Steelcast

Tirupati Forge

Happy Forgings

Magna Electrocas

Synergy Green

Nelcast

Balu Forge

Amic Forging

Poojaa Precision

Why is Happy Forgings Ltd ?

Company has a Debt to Equity ratio (avg) of 0.01 times

Poor long term growth as Net Sales has grown by an annual rate of 9.48% and Operating profit at 14.62% over the last 5 years

The company has declared Positive results for the last 4 consecutive quarters

NET SALES(Q) Highest at Rs 449.42 cr
PBDIT(Q) Highest at Rs 140.85 cr.
PBT LESS OI(Q) Highest at Rs 111.56 cr.

With ROE of 14.2, it has a Very Expensive valuation with a 8.3 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 94.64%, its profits have risen by 21.6% ; the PEG ratio of the company is 2.5

Falling Participation by Institutional Investors

Institutional investors have decreased their stake by -0.79% over the previous quarter and collectively hold 17.42% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Market Beating Performance

The stock has generated a return of 94.64% in the last 1 year, much higher than market (BSE500) returns of 4.11%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Happy Forgings should be less than 10%
Overall Portfolio exposure to Castings & Forgings should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Castings & Forgings)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Happy Forgings for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Happy Forgings

95.46%

2.81

34.03%

Sensex

-2.63%

-0.19

13.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.48%

EBIT Growth (5y)

14.62%

EBIT to Interest (avg)

35.45

Debt to EBITDA (avg)

0.84

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

0.62

Tax Ratio

24.90%

Dividend Payout Ratio

10.57%

Pledged Shares

Institutional Holding

17.42%

ROCE (avg)

16.09%

ROE (avg)

14.57%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

8.32

EV to EBIT

42.67

EV to EBITDA

34.75

EV to Capital Employed

8.18

EV to Sales

10.80

PEG Ratio

2.52

Dividend Yield

0.21%

ROCE (Latest)

17.61%

ROE (Latest)

14.17%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

19What is working for the Company

NET SALES(Q)

Highest at Rs 449.42 cr

PBDIT(Q)

Highest at Rs 140.85 cr.

PBT LESS OI(Q)

Highest at Rs 111.56 cr.

PAT(Q)

Highest at Rs 91.46 cr.

DEBTORS TURNOVER RATIO(HY)

Highest at 3.92 times

EPS(Q)

Highest at Rs 9.69

-3What is not working for the Company

ROCE(HY)

Lowest at 16.78%

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Here's what is working for Happy Forgings

Net Sales - Quarterly

Highest at Rs 449.42 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 140.85 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 111.56 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 91.46 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 111.56 cr has Grown at 20.2% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 92.79 Cr

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 91.46 cr has Grown at 21.3% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 75.41 Cr

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 9.69

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Debtors Turnover Ratio- Half Yearly

Highest at 3.92 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Happy Forgings

Non Operating Income - Quarterly

Highest at Rs 11.08 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income