Happiest Minds — A Play On The Fast Growing Digital IT Services Market: Yes Securities Initiates Coverage

Yes Securities Report

Six reasons to buy Happiest Minds Technologies Ltd.-

1. IT company with 20% plus revenue growth outlook led by predominant presence in digital business that includes focus on cloud, software-as-a-system, security solutions, artificial intelligence, internet of things, etc. Digital revenue accounting for 97% of revenue drives faster revenue growth. While the industry faces near term challenges due to macroeconomic issues, the long term demand environment remains robust on account of accelerated adoption of digital technologies.

2. 20% plus Ebit margin for IT company, that is significantly smaller than other tier-II IT companies, led by high offshore effort mix (96%) and better revenue mix with dominant presence in digital business.

3. In terms of business units, it operates through product engineering services (47.7% of revenue), digital business services (30.7% of revenue), infrastructure management and security services (21.6% of revenue).

4. Diversified revenue base across industry verticals and geography. As of Q3 FY23, in terms of revenue mix, the revenue base is diversified across edu-tech (23.2%); hi‐tech (~15.7%); travel, media and entertainment (13.1%); banking, financial services and insurance (~10.3%); retail (10.4%); manufacturing (10.0%); and other (8.2%).

5. Strong promoter (promoter holding 53%) track record as the management team is led by its founder and industry veteran Mr. Ashok Soota, with several decades of experience in the IT services industry.

6. Strong revenue growth outlook along with superior margin profile makes it credible play in the IT services space.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.