Happiest Minds has strengthened its capabilities in the BFSI and Healthcare verticals, fuelled by strategic acquisitions of PureSoftware and Aureus. The recent acquisition of Gavs Technologies will further strengthen the BFSI vertical, which is now ~24% of revenue.
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HDFC Securities Institutional Equities
Happiest Minds Technologies Ltd. is well-positioned for organic growth revival, driven by its strategic focus on product engineering, digital transformation, and successful integration of recent large acquisitions.
We believe the current scale of the business, the distinction in quality and the disproportionate impact from potential recovery in discretionary services will lead to recovery in organic growth.
We factor in USD revenue growth of 25/19/21% and factor in Ebitm of 13.8/16.2/16.1% for FY25/26/27E, which translates to an EPS CAGR of 15% over FY24-27E.
At the current market price, Happiest Minds is trading at 36/30x FY26/27E, lower than its historical average multiple of 45x. We maintain Add on Happiest Minds with a target price of Rs 760, valued at 32x Mar-27E EPS.
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Also Read: BPCL — Motilal Oswal Maintains 'Neutral' Stance On The Stock; Citing Rising Capex, Muted GRM Outlook
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