'Buy' Happiest Minds Shares Recommends Anand Rathi, Sees Upto 31.5% Upside — Here's Why

With Pure, Aureus and ME GAVS acquisitions closed in the last one year, Happiest Minds' business mix has shifted favorably towards BFSI and Healthcare, which together accounted for 42% of revenue in Q4 FY25 (vs ~27.5% of revenue in Q4 FY24)..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Anand Rathi Report.Niche product engineering-focused IT services company with 6,600+ employees and diversified verticals spanning BFSI, healthcare, edutech, etc. FY25 was transformational for Happiest Minds Technologies Ltd., as it leveraged on inorganic growth to significantly alter its business mix towards BFSI and healthcare: Deployed ~$90 million for acquisitions of PureSoftware (“Pure”), Aureus and Middle East business of GAVS Tech (“ME GAVS”), with $45 million to be deployed in earn-outs.Its FY25 revenue is ~$244m, EBITDA margin ~17.2%; Marketcapof ~$1.1bn. The stock currently trades at FY26e/27e price/adjusted earnings per shares of 31.2x/26.5x, respectively..Investment thesis - Inorganic growth driving improved business mix towards BFSI and healthcare (~42% of revenue in Q4 FY25 vs 27.5% in Q4 FY24).Verticalized organization structure to improve client mining and drive sales efficiency. Appointment of CGO to help in net new client opportunities and drive cross-sell across business units.The dedicated AI business unit reinforces the company’s commitment to leverage AI for winning deals.. Key risksUS slowdown remains the biggest risk, as we assume discretionary spend revival in H2 FY26 to impact Hitech (~16% of revenues), mfg. and industrial (~10%) and BFSI (~25%) verticals.Edutech vertical (~17% of revenue) has been a drag and is expected to weigh down on revenue for a few quarters. However, we draw comfort from reduced edutech contribution (~700bps) in the last one year, on acquisitions focused on BFSI and healthcare segments..Click on the attachment to read the full report:.Arisinfra Solutions IPO GMP Indicates Over 11% Listing Gain Ahead Of June 18 Launch — Check Key Details.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

'Buy' Happiest Minds Shares Recommends Anand Rathi, Sees Upto 31.5% Upside — Here's Why

Anand Rathi's target price Rs 790, implies a 31.5% upside from the current price, basis 50% weight each to DCF and the multiple method.

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