Happy Forgings gains 3% on bagging a large order from auto major

Shares of Happy Forgings jumped 3 percent in trade on February 16 after the company bagged an order from an unnamed leading Indian automaker.

The size of the order is worth Rs 60-70 crore per annum and Rs 400 crore for a period of six years, starting April 1.

At 11.45am, shares of the company were trading at Rs 974.05 on the NSE, up 0.95 percent from the previous session’s closing price.

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This order entails manufacturing and supply of fully machined components for the SUV segment. “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 market,” the company said in an exchange filing.

“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,” Ashish Garg, managing director, said.

Happy Forgings listed 18 percent higher on December 27 after its public issue was subscribed 82 times. Since its debut, the shares of the company have lost 5.7 percent.

Happy Forgings is an engineering-led manufacturer of complex and safety critical, heavy forged and high precision machined components. The Punjab-based company serves various sectors such as automotive, railways, and more, targeting both domestic and global OEMs. Notable customers include AAM India, Ashok Leyland and Mahindra & Mahindra.

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