ICICI Securities research report on Happy Forgings
Happy Forgings (HFL) is a leading manufacturer of complex, heavy-forged and precision-machined components. HFL’s focus on enhancing its capabilities has helped expand the company’s product portfolio and customer base across diverse segments (CV, PV, farm, OHV, industrials) and geographies. This has enabled HFL to consistently outperform the underlying industry. Given HFL’s current scale and a large addressable global opportunity, especially owing to the shifting global landscape, we see long-term runway for growth. With ~20% pre-tax RoCE (depressed due to high capex phase), we expect HFL to deliver ~13% earnings CAGR during FY25–28E despite a muted outlook for the underlying industry.
Outlook
We initiate coverage on HFL with a BUY rating and TP of INR 1,150 based on 30x Sep’27E EPS.
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