Happy Forgings Limited
Happy Forgings Limited Fundamental Analysis
Happy Forgings Limited (HAPPYFORGE.NS) shows moderate financial fundamentals with a PE ratio of 39.12, profit margin of 19.38%, and ROE of 15.51%. The company generates $14.8B in annual revenue with moderate year-over-year growth of 3.73%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 64.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze HAPPYFORGE.NS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentHAPPYFORGE.NS demonstrates superior asset utilization.
Valuation Score
WeakHAPPYFORGE.NS trades at a premium to fair value.
Growth Score
WeakHAPPYFORGE.NS faces weak or negative growth trends.
Financial Health Score
ExcellentHAPPYFORGE.NS maintains a strong and stable balance sheet.
Profitability Score
ExcellentHAPPYFORGE.NS achieves industry-leading margins.
Key Financial Metrics
Is HAPPYFORGE.NS Expensive or Cheap?
P/E Ratio
HAPPYFORGE.NS trades at 39.12 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, HAPPYFORGE.NS's PEG of 7.41 indicates potential overvaluation.
Price to Book
The market values Happy Forgings Limited at 5.70 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 23.75 times EBITDA. This signals the market has high growth expectations.
How Well Does HAPPYFORGE.NS Make Money?
Net Profit Margin
For every $100 in sales, Happy Forgings Limited keeps $19.38 as profit after all expenses.
Operating Margin
Core operations generate 30.32 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.51 in profit for every $100 of shareholder equity.
ROA
Happy Forgings Limited generates $12.42 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Happy Forgings Limited produces operating cash flow of $2.18B, showing steady but balanced cash generation.
Free Cash Flow
Happy Forgings Limited generates weak or negative free cash flow of $80.56M, restricting financial flexibility.
FCF Per Share
Each share generates $0.85 in free cash annually.
FCF Yield
HAPPYFORGE.NS converts 0.07% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
39.12
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
7.41
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.70
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.58
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.10
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.15
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.22
vs 25 benchmark
How HAPPYFORGE.NS Stacks Against Its Sector Peers
| Metric | HAPPYFORGE.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 39.12 | 25.81 | Worse (Expensive) |
| ROE | 15.51% | 1255.00% | Weak |
| Net Margin | 19.38% | -46754.00% (disorted) | Strong |
| Debt/Equity | 0.10 | 0.78 | Strong (Low Leverage) |
| Current Ratio | 3.15 | 10.04 | Strong Liquidity |
| ROA | 12.42% | -1492804.00% (disorted) | Strong |
HAPPYFORGE.NS outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Happy Forgings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
139.68%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
217.62%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
64.51%
Industry Style: Cyclical, Value, Infrastructure
High Growth