Happiest Minds Technologies Ltd (HMTL) incorporated in 2011, is a Bangalore based IT service provider, which provides end-to-end solutions in the digital space. As of June 30, 2020, HMTL had 148 active customers and presence in countries like US, UK, Australia, Canada and the Middle East. The experienced Ashok Soota, who is the Promoter, Executive Chairman and...
Over FY18-20, the company sales has grown at a CAGR of 22.8% . Going ahead, being into the digital space which is expected to grow at a CAGR of 20% over FY18-FY25, we feel Happiest Mind can sustain higher growth. Other than this, company peers revenue are growing at a Higher CAGR of 26% to 36%. With this, we feel, Happiest Minds has tremendous scope for improvement .Acquisition of new larger accounts and with cross sell and up sell opportunities available to its acquired clients , will help the company to grow ahead. Ebitda margin for FY20 was at 13.9% (expansion of 461bps over FY19) whereas Q4FY20 margin was much ahead of average margin in FY20. In Q1FY20 Ebitda margins further improved to 21.4% which is partly due to rupee appreciation, lower lease rentals etc partly also because of leveraging of SGA cost. Management indicated that core higher EBITDA margin is sustainable. ROCE of the company have improved to 23.7% in FY20 and ROE stands at 31.2% in FY20As per our rough estimates, at the given upper price band of issue of Rs 166, Happiest Mind is offered at PE of 17x FY22E which is attractive. We recommend subscribing to the issue.
Rs. 2 each, (Comprising of fresh issue of 6,626,506 Equity Shares* (Rs. 110 cr.) and Offer for Sale of 35,663,585 Equity Shares (Rs. 592.02 cr.*) by Selling...
improved from -9% in FY18 to 11% in FY20 and 18.5% in 1QFY21. FCF/EBITDA stood at ~80% in FY20 with the company generating RoE of 31.3% in FY20. The total issue size of the IPO is Rs7bn (upper end of price band) with fresh issue of 4.7% (6.65mn shares) aggregating up to Rs1.1bn and an OFS of up...
