Happiest Minds Technologies Ltd. share price target

Happiest Minds (HAPPSTMNDS) reported 25.6% YoY CC growth in FY25, lower than its guidance of 27-28%. Organic growth for FY25 stood at ~3.2% as per our estimate.

Happiest Minds (HAPPSTMNDS) has once again revised down its FY25 revenue target to 27-28% vs 30-35% YoY CC earlier. We cut revenue by 7%/9% for FY26-27E, factoring in lower organic growth momentum and softness in edutech.

HAPPSTMN Q3FY25 earnings fell short of our estimates. In Q3FY25, HAPPSTMN reported a revenue of INR 5,308 Mn, up 29.5% YoY (+1.8% QoQ), missing our estimates. EBIT miss our projections and stood at INR 729 Mn, up 10.3% YoY (+6.2% QoQ). EBIT margin stood at 13.7% (-239bps YoY/+57bps QoQ).

HAPPSTMN Q2FY25 earnings fell short of our estimates, despite a beat on top line.
In Q2FY25, HAPPSTMNDS reported a revenue of INR 5,216 Mn, up 28.3% YoY (+12.5% QoQ), beating our estimates.

Happiest Mind’s (HAPPSTMN) operating performance undershot estimates with both margin and revenue missing their marks.

Given the company's strong growth potential backed by robust deal wins and superior execution capabilities, we recommend a BUY rating on the stock.

In Q4FY24, HAPPSTMNDS reported a revenue of INR 4,173 Mn (+1.8% QoQ). The revenue missed our estimates due to lower revenue growth in EduTech and manufacturing verticals.

Given the company's strong growth potential backed by robust deal wins and superior execution capabilities, we recommend a BUY rating on the stock.

Recommendation: Given the company's strong growth potential backed by robust deal wins and superior execution capabilities, we recommend a BUY rating on the stock.

For Q3FY24, the company generated a revenue of INR 4,099 Mn, a growth of 0.8% QoQ and 11.7% YoY.
The growth was 0.8 % QoQ and 9.4% YoY on a CC basis.

we initiate coverage with a BUY rating and a Target Price of Rs 1,100/share, offering an attractive upside of 22% from the CMP.

Happiest Minds Technologies Limited revenue for Q2FY24 stood at USD 49.1 mn, registering a growth of 10.83% YoY and 3.15% QoQ. Out of total revenues, the Product Engineering Services (PES) contributes 50.4%, followed by Digital business solution (DBS) contributing 27.2% of revenues. 88% revenue comes from repeat business, demonstrating a healthy relationship with clients.

Happiest Minds (HM) reported in-line revenue growth of 3.6% QoQ CC (vs I-SEC: 3.5%) and 11.6% YoY CC in Q2FY24 led by healthy growth in product engineering services (5.2% QoQ USD) and digital business solutions (3.7% QoQ USD). Infrastructure management and security solutions’ revenue declined 2.5% QoQ USD and has been flat over the last six quarters.