1. Brief Introduction of of Happy Forgings Ltd
Happy Forgings IPO, set to raise
Rs 1,008.59 crores, is a significant event in the financial landscape. This
article delves into the IPO details, company background, and whether investors
should consider subscribing.
The IPO bidding began on December
19, 2023, and concludes on December 21, 2023. Allotment is expected on December
22, 2023, with a tentative listing date of December 27, 2023.
3. IPO Price Band and Lot Size of Happy Forgings Ltd
Investors should note the price
band of ₹808 to ₹850 per share and the minimum lot
size of 17 shares. Retail investors must invest a minimum of ₹14,450.
4. Company Background & Financial Performance of of Happy Forgings Ltd
Happy Forgings Ltd. (HFL) stands
as the fourth-largest engineering-led manufacturer in India, specializing in
complex and safety-critical components. This section explores its market
position.
Business
Operations
HFL is engaged in engineering,
testing, manufacturing, and supply of various components. This section details
the core activities that make HFL a significant player in the industry.
Market Catering
Exploring HFL's market presence in the automotive and non-automotive sectors, this section sheds light on its diversified customer base.
Capacity and Manufacturing of Happy Forgings Ltd
HFL's impressive forging capacity
and transition to machined components are discussed here, showcasing its
adaptability and industry standing.
Product Range of Happy Forgings
Ltd
A closer look at the extensive
range of heavy forged and machined products, including crankshafts, front axle
beams, and suspension products.
Experience and Industry Position
of Happy Forgings Ltd
With over 40 years of experience,
HFL has emerged as a leading player in crankshaft manufacturing. This section
outlines its journey and current standing.
Financial Performance of Happy Forgings Ltd: An In-depth Analysis
Happy Forgings Ltd. (HFL) has
exhibited a commendable financial performance over the last three fiscal years,
showcasing resilience and growth. Here's a comprehensive overview:
Total Income and Net Profit (in Crores)of Happy Forgings Ltd:
FY21 (Standalone): rs509.81 / rs86.45
FY22 (Consolidated): rs866.11 / rs142.29
FY23 (Consolidated): rs1202.27 / rs208.70
H1 FY24 (Standalone): rs119.30 / rs675.73
Standalone vs. Consolidated Data Clarification of Happy Forgings Ltd:
HFL faced confusion due to a
pending JV approval, leading to the use of the Consolidated tag for FY22 and
FY23. The data, however, represents standalone figures. Approval received last
month clarifies the standalone nature, and financial data should be considered
standalone until the JV is finalized.
Earnings per Share (EPS) and Return on Net Worth (RoNW) of Happy
Forgings Ltd:
Average EPS (last three fiscals of Happy Forgings Ltd): 18.57
Average RoNW: 18.82%
Happy Forgings Ltd IPO Pricing and Valuation:
Price to Book Value (P/BV) of
Happy Forgings Ltd:
Based on NAV (Sep 30, 2023): 6.89
Post-IPO NAV (Upper cap): 5.33
Post-IPO Earnings and Pricing of Happy Forgings Ltd:
FY24 annualized earnings
attribute to post-IPO fully diluted paid-up equity capital, resulting in a
Price to Earnings (P/E) of 33.56. The IPO is considered reasonably priced.
Profit After Tax (PAT) and Return on Capital Employed (RoCE) Margins of
Happy Forgings Ltd:
FY21: 14.78% (PAT), 16.13% (RoCE)
FY22: 16.54% (PAT), 19.38% (RoCE)
FY23: 17.44% (PAT), 24.24% (RoCE)
H1 FY24: 17.73% (PAT), 12.21%
(RoCE)
Dividend Policy of Happy Forgings Ltd:
Declared a substantial dividend
of 65% for the period from April 01, 2023.
Adopted a dividend policy in July
2023, reflecting confidence in financial performance and future prospects.
In summary, Happy Forgings Ltd.'s
financial trajectory demonstrates stability, growth, and a strategic approach,
making it an intriguing prospect for investors.
Why Consider Happy Forgings IPO
Highlighting the strengths of HFL
as an investment, including its global OEM partnerships and steady growth in
top and bottom lines.
Investment Analysis of Happy Forgings Ltd
An in-depth analysis for
potential investors, considering the reasonably priced issue based on FY24
annualized earnings and the medium to long-term rewards.
Conclusion on Happy Forgings Ltd
Summarizing the key points, this
section provides a concise overview and encourages potential investors to
consider Happy Forgings IPO.
FAQs on of Happy Forgings IPO
Q1: What is the minimum investment for retail investors?
A: Retail investors must invest a
minimum of ₹14,450 in the Happy Forgings IPO.
Q2: When will the IPO be listed?
A: The tentative listing date for
Happy Forgings IPO is December 27, 2023.
Q3: What is the price band per share?
A: The price band for Happy
Forgings IPO is set at ₹808 to ₹850 per share.
Q4: What is the minimum lot size for application?
A: The minimum lot size for an
application is 17 shares.
Q5: What is the business focus of Happy Forgings Ltd.?
A: HFL is focused on engineering, process design, testing, manufacturing, and supply of complex and safety-critical components.
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