Happiest Minds Technologies Ltd. share price target

We recommend a BUY on Happiest Minds Technologies Ltd. with a Target Price of Rs 690/share, offering an upside potential of 23% from the current market price.

The company has shown impressive YoY revenue growth and improving profitability and margin, particularly aided by the BFSI and healthcare sectors. With expectations of double-digit revenue growth and EBITDA margin between 20-22% in the future, the company's prospects are bright. New transformational initiatives and investments in the GenAI business unit are expected to boost profitability. Additionally, the company's strong performance in the BFSI and healthcare segments, driven by new client acquisitions and a healthy pipeline, will likely...

Given the company's strong growth potential backed by robust deal wins and superior execution capabilities, the company is expected to report healthy growth. Hence, we resume our coverage with a BUY rating on the stock.

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.

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.

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.

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 (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.

Happiest minds (HM) reported 3.6% QoQ USD, 3.5% QoQ CC, revenue growth, slightly lower than our estimate of 4% QoQ CC. On a YoY basis, growth was 12.7% YoY USD (7% organic). EBIT margin came in at 19.2% (-175bps QoQ), below our estimate of 21.1% due to higher employee costs attributable to slight increase in onsite employee mix and campus joinee related costs.