Happy Forgings Ltd Share Price – NSE /  BSE

Castings, Forgings & Fastners, Small Cap

Happy Forgings has allotted 17,375 equity shares under ESOS on 12 February 2025. The Paid-up Share Capital of the Company will accordingly increase from Rs.18,84,49,650 (9,42,24,825 equity shares of Rs.2/- each) to Rs. 18,84,84,400 ( 9,42,42,200 equity shares of Rs. 2/-each).

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This MoU sets the main terms and principles for a binding long-term supply contract, which will be signed when approved components start shipping in 2028.

Under the MoU, the customer has committed an initial investment of approximately Rs 20 crore for tooling and development, with sampling and testing planned for 2027. The binding supply contract will commence in 2028 with the delivery of approved components. Annual revenues are expected to be approximately Rs 95 crore based on minimum committed volumes, with a peak potential of Rs 160 crore per year, contingent on the customer’s equipment sales.

This order will be executed through HFL’s upcoming heavy forging facility, which is being developed as part of a Board-approved capital expenditure plan of Rs 650 crore sanctioned in January 2025. These new capabilities will position Happy Forgings among the select manufacturers capable of producing heavy forged and precision-machined components exceeding 250 kilograms.

Ashish Garg, managing director of Happy Forgings, said: “We are pleased to announce our first MoU in the heavy forged and precision machined components segment for parts exceeding 250 kg with a leading global manufacturer. This agreement provides strong visibility for the deployment of our new heavy forging capacity upon commissioning. It also reinforces our engineering expertise and positions HFL to pursue additional large-scale, heavyweight component opportunities across various industrial sectors. Expanding into this high-value segment aligns with our long-term strategy to diversify our portfolio, drive profitability, and create lasting value for our stakeholders.”

Happy Forgings is principally engaged in the manufacturing of forgings and related components.

The company’s consolidated net profit jumped 11.5% to Rs 64.55 crore on 3.6% increase in net sales to Rs 354.32 crore in Q3 FY25 over Q3 FY24.

The scrip declined 3.11% to end at Rs 932.25 on Tuesday, 11 February 2025.

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Happy Forgings has obtained an international order to supply heavy forged and precision-machined components weighing upto 1,000 Kgs for use in industrial and mining applications. The order entails annual committed volumes of Rs 95 crore with a peak annual revenue potential of Rs 160 crore. Testing and sampling is scheduled in 2027 and supplies are expected to commence in 2028 under the binding long-term supply contract.

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Net profit of Happy Forgings rose 11.49% to Rs 64.55 crore in the quarter ended December 2024 as against Rs 57.90 crore during the previous quarter ended December 2023. Sales rose 3.61% to Rs 354.32 crore in the quarter ended December 2024 as against Rs 341.99 crore during the previous quarter ended December 2023.

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