ScoreWhy is Happy Forgings Ltd ?
1
Company has a low Debt to Equity ratio (avg) at 0.02 times
2
Poor long term growth as Operating profit has grown by an annual rate 19.50% of over the last 5 years
3
Positive results in Sep 25
- OPERATING CF(Y) Highest at Rs 292.36 Cr
- NET SALES(Q) Highest at Rs 377.39 cr
- PBDIT(Q) Highest at Rs 115.80 cr.
4
With ROE of 13.8, it has a Very Expensive valuation with a 5.2 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -0.83%, its profits have risen by 10% ; the PEG ratio of the company is 3.7
5
Majority shareholders : Promoters
6
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -0.83% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
Real-Time Research ReportHow 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?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Happy Forgings
-0.64%
-0.02
26.71%
Sensex
4.89%
0.41
11.85%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
17.90%
EBIT Growth (5y)
19.50%
EBIT to Interest (avg)
40.70
Debt to EBITDA (avg)
0.45
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0.71
Tax Ratio
25.39%
Dividend Payout Ratio
10.57%
Pledged Shares
0
Institutional Holding
19.03%
ROCE (avg)
18.13%
ROE (avg)
14.49%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
37
Industry P/E
39
Price to Book Value
5.15
EV to EBIT
29.78
EV to EBITDA
24.01
EV to Capital Employed
5.14
EV to Sales
7.03
PEG Ratio
3.73
Dividend Yield
0.28%
ROCE (Latest)
17.25%
ROE (Latest)
13.85%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
OPERATING CF(Y)
Highest at Rs 292.36 Cr
NET SALES(Q)
Highest at Rs 377.39 cr
PBDIT(Q)
Highest at Rs 115.80 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 30.68%
PBT LESS OI(Q)
Highest at Rs 92.35 cr.
PAT(Q)
Highest at Rs 73.44 cr.
EPS(Q)
Highest at Rs 7.79
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for Happy Forgings
Operating Cash Flow - Annually
Highest at Rs 292.36 Cr
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (Rs Cr)
Net Sales - Quarterly
Highest at Rs 377.39 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 115.80 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 30.68%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 92.35 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 73.44 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 7.79
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
