Rs 400,00,00,000 order: This small-cap castings & forgings company breaks ground in passenger vehicles market with a large order win from a leading Indian automaker
The company's shares have an ROE of 23.5 per cent and an ROCE of 26.2 per cent.
Happy Forgings Limited (HFL), one of the largest engineering-led manufacturers of complex and safety-critical, heavy forged and high precision machined components in India in terms of forgings capacity, has received a “letter of business award” from a leading Indian automobile manufacturer of passenger vehicles marking a significant milestone in its journey of expansion and growth.
This order entails manufacturing and supply of fully machined components for the SUV segment. The total size of the order is worth Rs 60-70 crore p.a. and Rs 400 crore for a period of 6 years starting from April 01, 2024. With this order, the company will establish its presence in the passenger vehicles segment as it aims to diversify the sectoral revenue mix further both in domestic as well as export markets. The order further endorses HFL’s capabilities in providing quality and high-precision value-added machined products for BS6 applications.
Today, shares of Happy Forgings Limited plunged 0.08 per cent to Rs 970 share from its previous closing of Rs 970.80 with an intraday high of Rs 985.95 and an intraday low of Rs 962.10. The shares of the company have a 52-week high of Rs 1,087.35 and its 52-week low is Rs 917.10.
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About Happy Forgings Limited: The Company is one of the largest engineering-led manufacturers of complex and safety-critical, heavy forged and high precision machined components in India in terms of forgings capacity. The Company through its vertically integrated operations is engaged in engineering, process design, testing, manufacturing, and supply of a variety of components that are both margin-accretive and value-additive. The company primarily caters to domestic and global original equipment manufacturers (OEMs) manufacturing commercial vehicles in the automotive sector, while in the non-automotive sector, caters to manufacturers of farm equipment, off-highway vehicles and manufacturers of industrial equipment and machinery for oil and gas, power generation, railways and wind turbine industries.
The company has a market cap of over Rs 9,000 crore. The company's shares have an ROE of 23.5 per cent and an ROCE of 26.2 per cent. Investors should keep an eye on this small-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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