Happy Forgings Ltd – Powering Industry One Part at a Time

Happy Forgings Limited is the fourth-largest engineering-led manufacturer of heavy forged and high precision machined components in India.

(A) About

Happy Forgings Limited is an engineering-led manufacturer of complex and safety critical, heavy forged and also high-precision machined components in India. Moreover,this Company was established in July 1979, Happy Forgings Limited is an Indian manufacturer specializing in designing and manufacturing heavy forgings and high-precision machined components. It is also engaged in engineering, process design, testing, manufacturing and supply of a variety of components.

(B) Journey of Happy Forgings Ltd.

Happy Forgings_Journey_PA Wealth.

(C) Board of Directors

(D) Shareholding Pattern of Happy Forgings Ltd.

Happy Forgings_Shareholding Pattern_PA Wealth.
Happy Forgings_Shareholding_PA Wealth.

(E) Business Segments

Happy Forgings_Products Portfolio_PA Wealth.

Company manufacture a wide range of heavy forged and machined products It also, include crankshafts, front axle beams, steering knuckles, differential cases, transmission parts, pinion shafts, suspension products and valve bodies across industries for a diversified base of customers.

(F) Revenue Segment

Product Wise Revenue

The Commerial Vehicles business is the largest segment of the company’s revenue, accounting for 43.65% of the company's total revenue in the financial year 2023. This is also followed by Farm Equipment, which accounts for 36.79% of the total revenue.

Further, the off highway vehicles segment accounts for 15.86% of the total revenue. While, industrial segment accounts for 3.70%.

Geographical Wise Revenue

This company exports 13% of its goods globally, while 87% of its products are sold in the domestic market.

(G) Cost Structure

Happy Forgings_Cost Structure_PA Wealth.

(H) Financials

Happy Forgings_Financials_PA Wealth.

Company has grown its revenue at 13.81% p.a in the past 6 years, while PAT grew from Rs 58.30 Cr in FY18 to Rs 208.70 Cr in FY23.

Further company has decreased its Debt/Equity from 1.6x in FY18 to 0.2x in FY23.

Happy Forgings_Dupont_PA Wealth.

(I) Management Discussion & Concall Highlights

  • It also, holds the position of the 4th largest engineering-led manufacturer of heavy forged and high-precision machined components in India.
  • The company has become a leading player in India's crankshaft manufacturing industry and also, has the second-largest production capacity for commercial vehicle and high horsepower industrial crankshafts as of now.
  • Company is investing in machinery and equipment to expand forging as well as machining capacity to seize opportunities for growth.
  • Additionally, it is the second company in India to have a 14,000 tonne forging press and are focusing on reducing waste in manufacturing processes.
  • However, the Company has automated certain processes in manufacturing lines by using robots to reduce manpower costs and increase productivity.
  • Furthermore, they export their products to Brazil, Italy, Japan, Spain, Sweden, Turkey, Thailand, United Kingdom and the US.


  • In other words, The Indian Forging market anticipates a 5.4% CAGR in volume by FY29, categorized by its end-use segments.
  • Additionally, over 9 years, the Automotive Industry market experienced a 5% CAGR, and analysts project it to grow at ~7% CAGR by FY29.
  • By FY23, the Indian Tractor market achieved a growth of ~4% CAGR over 9 years, and also analysts expect it to grow at ~6% CAGR by FY29 in volume.

(J) Strengths and Weaknesses


Healthy business risk profile supported by strong relationships with customers:- HFL has established track record of more than 3 decades in the manufacturing of forged and machining components and is the main supplier to several leading domestic OEMs.

However, the Financial risk profile has improved over the years on the back of healthy cash accrual, progressive debt repayment and equity infusion in fiscal 2019.


 In fact, the CV segment is vulnerable to growth in industrial and agricultural production, freight movement, share of road transport in freight movement, changes in freight rates and fuel prices, profitability of truck operators, state transport undertakings and government policies. Also, tractor demand is vulnerable to the vagaries of monsoon and farm income.

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References:  Annual Reports, News Publications, Investor Presentations, Corporate Announcements, Management Discussions, Analyst Meets and Management Interviews, Industry Publications.

Disclaimer: The report only represents the personal opinions and views of the author. No part of the report should be considered a recommendation for buying/selling any stock. Thus, the report & references mentioned are only for the information of the readers about the industry stated.

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