Happy Forgings breaks ground in Passenger Vehicles market with a large order win from a leading Indian automaker

Happy Forgings Limited (HFL), one of the largest engineering led manufacturer 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 ~INR 60-70 crores p.a. and ~Rs 400 crores for a period of 6 years starting from 1st April 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 exports markets.

The order further endorses HFL's capabilities in providing quality and high-precision value added machined products for BS6 applications.

Commenting on the development, Mr. Ashish Garg, Managing Director said, "This order win represents a significant milestone for Happy Forgings, marking its entry into the passenger vehicles market segment within the automotive industry. This development is particularly noteworthy as the order comes from a major Indian automobile manufacturer renowned for its diverse range of passenger vehicles, including SUVs.

The expansion into the passenger vehicles segment not only broadens Happy Forgings' market reach but also enhances its sectoral revenue mix, thereby reducing dependency on any single market segment. Additionally, securing this order strengthens the company's long-term customer relationships, laying a solid foundation for future collaborations.

As part of our strategic focus on expanding product capabilities, this order win serves as a reaffirmation of Happy Forgings' confidence in its growth trajectory. Looking ahead, the company anticipates that the passenger vehicles segment will make a meaningful contribution of upto 8-10% of the total revenues in the future."

Shares of Happy Forgings Limited was last trading in BSE at Rs. 982.35 as compared to the previous close of Rs. 962.60. The total number of shares traded during the day was 2364 in over 474 trades.

The stock hit an intraday high of Rs. 986.75 and intraday low of 941.30. The net turnover during the day was Rs. 2281645.00.

Source : Equity Bulls

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