The castings and forgings sector presents diverse investment opportunities through listings like Happy Forgings Limited, AMIC Forging Limited and Synergy Green Industries Limited, offering exposure to India’s manufacturing growth through public markets.
Content:
- Overview of the Castings & Forgings IPOs in India
- IPO Fundamental Analysis
- IPO Financial Analysis
- About the Company
- Advantages of Investing in Castings & Forgings Sector IPOs
- Disadvantages of Investing in Castings & Forgings Sector IPOs
- Role of the Castings & Forgings Industry in the Economy
- How to invest in Castings & Forgings IPOs?
- Future Outlook of Castings & Forgings IPOs in India
- Castings & Forgings IPOs in India – FAQ
Overview of the Castings & Forgings IPOs in India
The castings and forgings sector features notable listings including Happy Forgings Limited, AMIC Forging Limited and Synergy Green Industries Limited, demonstrating strong potential in India’s expanding manufacturing capabilities.
These offerings enable investors to participate in industrial growth while benefiting from increasing automotive demand, infrastructure development and technological advancements in manufacturing processes nationwide.
IPO Fundamental Analysis
Happy Forgings Limited
Happy Forgings Ltd. delivered a strong financial performance in FY24, showcasing growth in revenue, profitability and asset base. The company’s results reflect enhanced operational efficiency and a solid financial position compared to FY23 across key financial metrics.
Revenue Trend: Sales increased to ₹1,358 crores in FY24 from ₹1,197 crores in FY23, reflecting a 13.44% growth. Expenses rose to ₹970.70 crores in FY24 compared to ₹855.59 crores in FY23.
Equity and Liabilities: Equity capital increased to ₹18.84 crores in FY24 from ₹17.90 crores in FY23. Reserves surged to ₹1,594 crores, while total liabilities expanded to ₹1,886 crores from ₹1,326 crores in FY23.
Profitability: Operating profit rose to ₹387.54 crores in FY24, up from ₹340.94 crores in FY23. The operating profit margin remained stable at 28.25%, compared to 28.36% in FY23.
Earnings per Share (EPS): EPS improved to ₹25.79 per share in FY24 from ₹23.32 per share in FY23, indicating enhanced shareholder returns and consistent profitability growth.
Return on Net Worth (RoNW): RoNW improved due to a higher net profit of ₹242.98 crores in FY24, up from ₹208.70 crores in FY23, supported by robust reserve growth.
Financial Position: Total assets increased to ₹1,886 crores in FY24 from ₹1,326 crores in FY23, driven by non-current assets rising to ₹1,144 crores and current assets to ₹741.75 crores. Contingent liabilities stood at ₹180.92 crores.
AMIC Forging Limited
Amic Forging Ltd’s financial performance highlights steady growth across key parameters, showcasing improvements in revenue, profitability and asset expansion. A strong balance sheet and operational efficiency underline the company’s capacity to deliver sustained results, supported by robust equity growth and increasing reserves.
Revenue Trend: Revenue grew to ₹126 crores in FY24 from ₹116 crores in FY23, marking an 8.62% increase. Expenses rose to ₹109 crores from ₹102 crores, maintaining a stable operating margin of 13%.
Equity and Liabilities: Equity capital surged to ₹10 crores in FY24 from ₹0.86 crores in FY23. Reserves jumped to ₹54 crores from ₹19 crores, while total liabilities increased to ₹92 crores from ₹62 crores.
Profitability: Operating profit rose to ₹16 crores in FY24, up from ₹14 crores in FY23, reflecting a 14.29% growth. Profit before tax also increased to ₹19 crores from ₹13 crores.
Earnings per Share (EPS): EPS normalized to ₹13.19 in FY24, down from a high of ₹112.52 in FY23 due to equity expansion, with consistent improvements in net profitability supporting long-term shareholder returns.
Return on Net Worth (RoNW): Reserves growth to ₹54 crores in FY24 strengthened the balance sheet, with net profit rising to ₹14 crores from ₹10 crores in FY23, boosting RoNW’s performance.
Financial Position: Total assets expanded to ₹92 crores in FY24 from ₹62 crores in FY23, supported by growth in fixed assets (₹12 crores) and other assets (₹62 crores). Borrowings remained steady at ₹4 crores.
Synergy Green Industries Limited
Synergy Green Industries Limited demonstrated strong financial growth in FY24, with notable improvements in revenue and profitability. The company has shown resilience through operational efficiency and prudent financial management, reflecting steady progress compared to FY23 across various metrics.
Revenue Trend: Revenue increased to ₹326.31 crores in FY24 from ₹289.71 crores in FY23, reflecting a 12.62% growth. Expenses also rose to ₹287.03 crores in FY24 compared to ₹263.39 crores in FY23.
Equity and Liabilities: Equity capital remained constant at ₹14.13 crores in FY24. Reserves rose significantly to ₹32.56 crores from ₹20.98 crores. Total liabilities grew to ₹198 crores from ₹181.77 crores in FY23.
Profitability: Operating profit increased to ₹39.28 crores in FY24, up from ₹26.32 crores in FY23. OPM improved to 11.97% from 9.07%, showcasing better operational efficiency and profitability.
Earnings per Share (EPS): EPS surged to ₹8.18 in FY24, marking a substantial improvement from ₹0.61 in FY23, indicating enhanced value for shareholders through robust earnings growth.
Return on Net Worth (RoNW): RoNW increased significantly due to the rise in net profit, which reached ₹11.56 crores in FY24 compared to ₹0.87 crores in FY23, indicating better shareholder returns.
Financial Position: Total assets grew to ₹198 crores in FY24 from ₹181.77 crores in FY23, driven by increases in non-current assets (₹90.23 crores) and current assets (₹107.77 crores). Contingent liabilities increased to ₹39.31 crores.
IPO Financial Analysis
Happy Forgings Limited
| FY 24 | FY 23 | FY 22 | |
| Sales | 1,358 | 1,197 | 860.05 |
| Expenses | 970.7 | 855.59 | 629 |
| Operating Profit | 387.54 | 340.94 | 230.89 |
| OPM % | 28.25 | 28.36 | 26.66 |
| Other Income | 13.35 | 5.74 | 6.06 |
| EBITDA | 400.89 | 346.68 | 236.95 |
| Interest | 11.78 | 12.48 | 7.16 |
| Depreciation | 64.73 | 54.18 | 37.74 |
| Profit Before Tax | 324.39 | 280.02 | 192.05 |
| Tax % | 25.09 | 25.47 | 25.91 |
| Net Profit | 242.98 | 208.7 | 142.29 |
| EPS | 25.79 | 23.32 | 15.9 |
* Consolidated Figures in Rs. Crores
AMIC Forging Limited
| Mar-23 | Mar-22 | Mar-21 | |
| Sales | 116.00 | 71 | 26 |
| Expenses | 102 | 69 | 25 |
| Operating Profit | 14.00 | 2 | 2 |
| OPM % | 0.12 | 3% | 6% |
| Other Income | 1.00 | 0 | 0 |
| Interest | 1 | 1 | 0 |
| Depreciation | 1 | 1 | 0 |
| Profit before tax | 13 | 1 | 1 |
| Tax % | 26% | 30% | 27% |
| Net Profit | 10 | 1 | 1 |
| EPS in Rs | 112.52 | 12.24 | 7.88 |
* Consolidated Figures in Rs. Crores
Synergy Green Industries Limited
| FY 24 | FY 23 | FY 22 | |
| Sales | 326.31 | 290 | 284 |
| Expenses | 287 | 263.39 | 259.71 |
| Operating Profit | 39.28 | 26.32 | 24.06 |
| OPM % | 11.97 | 907% | 844% |
| Other Income | 1.82 | 0.44 | 1.14 |
| EBITDA | 41.1 | 26.76 | 25.2 |
| Interest | 13.35 | 14.08 | 11.5 |
| Depreciation | 12.09 | 11.99 | 10.64 |
| Profit Before Tax | 1566% | 69% | 307% |
| Tax % | 26.15 | -25.18 | 53.42 |
| Net Profit | 11.56 | 0.87 | 1.43 |
| EPS | 818% | 61% | 101% |
* Consolidated Figures in Rs. Crores
About the Company
Happy Forgings Limited
Happy Forgings Limited, based in Ludhiana, is a leading manufacturer of heavy forged and precision-machined components for automotive and industrial applications. Established in 1979, the company is renowned for its products like crankshafts, steering knuckles and front axle beams.
It serves domestic and international markets, delivering high-quality products adhering to global standards. With a strong emphasis on innovation and customer satisfaction, the company continues to expand its presence across various industries, showcasing operational excellence and reliability.
AMIC Forging Limited
Founded in 1971 and headquartered in Kolkata, AMIC Forging Limited is a prominent producer of open forgings and precision-machined components. It caters to industries like heavy engineering, steel, oil and gas and power generation, adhering to rigorous international standards.
The company is known for its advanced manufacturing capabilities and commitment to quality. With a diversified product portfolio, it consistently meets the demands of clients worldwide, making significant contributions to India’s industrial growth and development.
Synergy Green Industries Limited
Synergy Green Industries Limited, located in Kolhapur, specializes in manufacturing large castings for wind turbines and industrial applications. The company plays a pivotal role in promoting renewable energy by providing energy-efficient and sustainable solutions for the wind power sector.
The firm focuses on innovation, advanced manufacturing techniques and environmental sustainability. By delivering high-quality products, it has established itself as a trusted partner for various industries, contributing to the growth of the green energy ecosystem in India.
Advantages of Investing in Castings & Forgings Sector IPOs
The main advantages include exposure to India’s industrial growth, steady demand from automotive and infrastructure sectors, technological advancement opportunities and market expansion through established companies like Happy Forgings Limited.
1. Industrial Growth: The sector benefits from increasing automotive production, infrastructure development, defence manufacturing and railway expansion projects, providing diverse revenue streams and growth opportunities.
2. Export Potential: Strong international demand for quality forgings and castings enables significant export opportunities, supporting revenue growth through global market access and partnerships.
3. Technology Integration: Modern manufacturing processes, automation capabilities and quality control systems enhance operational efficiency and product competitiveness in domestic and international markets.
Disadvantages of Investing in Castings & Forgings Sector IPOs
The main challenges include raw material price volatility, high energy costs, technological upgrade requirements and market competition, as demonstrated in the performance metrics of companies like Happy Forgings Limited.
1. Raw Material Fluctuations: Companies face challenges from steel price volatility, energy cost variations, supply chain disruptions and international market dynamics affecting production costs and profit margins.
2. Capital Intensive Operations: Significant investments required for equipment upgrades, technology adoption, quality certifications and capacity expansion impact financial planning and return on investment timelines.
3. Market Competition: International competition, pricing pressures, quality standards compliance and continuous innovation requirements affect market share and profitability in domestic and export markets.
Role of the Castings & Forgings Industry in the Economy
The sector drives industrial growth through employment generation, export earnings, technology advancement and support to automotive, infrastructure and defence manufacturing sectors while ensuring quality standards and international competitiveness.
Industry contributes significantly to manufacturing GDP, promotes skill development, enhances technological capabilities, strengthens India’s position in global supply chains and fosters innovation in manufacturing processes and material technologies.
How to invest in Castings & Forgings IPOs?
Start by opening a demat account with Alice Blue, complete comprehensive KYC requirements and thoroughly research upcoming sector IPOs through a detailed analysis of fundamentals.
Monitor SEBI announcements, company prospectuses, market conditions and sector trends and maintain required funds for a timely subscription while following systematic investment approaches.
Future Outlook of Castings & Forgings IPOs in India
The sector shows promising growth potential with increasing industrial demand, automotive sector expansion, infrastructure development plans and growing export opportunities.
Industry advancement, manufacturing technology enhancement and market expansion initiatives indicate positive prospects for future IPOs, supported by government manufacturing initiatives.
Castings & Forgings IPOs in India – FAQ
These IPOs represent the first public offerings from manufacturing companies specializing in metal casting and forging, like Happy Forgings Limited and AMIC Forging Limited, enabling investor participation in industrial growth.
Major listings include Happy Forgings Limited, AMIC Forging Limited and Synergy Green Industries Limited, offering investors exposure to manufacturing capabilities and industrial development opportunities.
These IPOs provide strategic investment opportunities in India’s manufacturing sector growth, with companies like Happy Forgings Limited demonstrating the potential for sustainable expansion and revenue generation.
Happy Forgings Limited IPO marks a significant milestone as a prominent sector offering, showcasing strong market interest and setting benchmarks for manufacturing industry valuations.
Begin with opening a trading account through Alice Blue, complete comprehensive KYC requirements, analyze market conditions, study company fundamentals and maintain adequate funds.
These sector IPOs offer substantial long-term growth potential, supported by India’s expanding manufacturing base, automotive sector growth and increasing infrastructure development demands.
Historical performance indicates strong profitability potential, though returns depend on market conditions, raw material costs and company-specific operational efficiencies in manufacturing processes.
Market observers anticipate new sector IPOs, following successful listings like Happy Forgings Limited and AMIC Forging Limited, driven by manufacturing growth opportunities.
Access comprehensive research and analysis through Alice Blue’s dedicated research portal, along with additional information from financial websites, SEBI documentation and industry reports.
Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
