Happy Forgings shares rally 7% on bagging ₹500-crore multi-year order
Upstox
2 min read • Updated: April 16, 2024, 1:33 PM
Summary
Happy Forgings has bagged a multi-year supply order from a leading global Tier 1 manufacturer of automobile driveline components and systems. The company will see inflows of ₹60-70 crore per annum.
Shares of auto components manufacturer Happy Forgings rallied up to 7% on Tuesday, April 16, after the company announced bagging a multi-year supply order worth ₹500 crore from a global firm.
Happy Forging shares rallied 7.32% to hit a high of ₹969.5 per share on the NSE in morning trade.
The stock has rebounded by around 19% from its 52-week low of ₹813.2 per share hit on March 18, 2024. The stock is still down by nearly 10% from the 52-week high levels hit in December 2023.
Happy Forging informed stock exchanges that it has received an order from a leading global Tier 1 manufacturer of automobile driveline components and systems.
The total order value is around ₹500 crore for the entire period while the company will see inflows of ₹60-70 crore per annum.
The company will start supplies from the last quarter of FY 2026 or the first quarter of FY 2027 and last up to December 2034.
The order from the international entity is for the supply of brake flanges for passenger vehicles (utility vehicles/ pickup trucks) subject to fulfillment of supply terms and conditions.
Happy Forgings is a more than 40-years-old Indian manufacturer specialising in manufacturing and supplying complex and safety-critical heavy forge and high-precision machined components.
It is engaged in engineering, process design, testing, manufacturing and supply of a variety of components to domestic and global OEMs. Approximately 85% of revenue comes from complete machined products.
The company reported a 20% volume growth in the third quarter of FY 2023-24 over the year ago period. Its revenue stood at ₹342 crore in Q3FY24 against ₹294 crore in the year ago period, having a growth of 16% on a year-on-year basis.
Its EBITDA stood at ₹95 crores in Q3FY24 against ₹73 crore a year ago, a growth of 30% on a year-on-year basis. EBITDA margin stood at 27.8% in Q3 of FY24 versus 24.9% in Q3FY23.
Happy Forgings share are trading 4.60% higher at ₹947 apiece on the NSE at 1:30 pm.