Happy Forgings IPO: The Good and The Bad

About the company

Incorporated in 1979, Happy Forgings is a leading heavy forgings and high-precision machined components manufacturer.

IPO details

Post IPO

Financial history

Key ratios

The positives

Long-standing relationships with clients. As of September 30, 2023, its top 10 customers have remained with it for at least 10 years.

The positives

Its top clients include reputed auto manufacturers, such as Ashok Leyland, JCB India, Mahindra & Mahindra, etc.

The negatives

Revenue concentration. Its top ten clients accounted for around 70 per cent of FY23 revenue.

The negatives

Lack of bargaining power. It sources most of its raw material from a limited number of suppliers. The forging industry is highly competitive.

Risk report

Is the company's net debt-to-equity ratio less than one? Yes. Its net debt-to-equity ratio stood at 0.2 times as of September 2023.

To get the complete risk report, visit vro.in