Happiest Minds Technologies - Valuation Can Remain Elevated: HDFC Securities

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..HDFC Securities Institutional Equities.We met the management of Happiest Minds Technologies Ltd. and believe that the company has growth catalysts despite services being more discretionary. The company is transitioning from an EduTech-heavy portfolio to a higher mix of BFSI and Healthcare (larger spending pool and pipeline)—recent acquisitions will accelerate growth prospects in the vertical with the up-sell opportunity.Happiest Minds reiterated its long-term ambition to reach $1 billion over the next eight years (23% CAGR including inorganic)—FY25E revenue growth outlook is 35 to 40% (including inorganic Pure Software & Aureus, implying organic at 10-15%)..Happiest Minds has recently changed its organisational structure and moved to an industry/vertical structure (Happiest Minds - Organisational rejig for better growth). We continue to believe that the current scale of the business, the distinction in quality and the disproportionate impact from potential recovery in discretionary services in the sector can keep valuation higher than peers for Happiest Minds.We factor U.S.D revenue growth at 34% and 26% for FY25E and FY26E respectively; factor Ebitm at 16.1% and 17.8%, translating to an earning per share compound annual growth rate of 27% over FY24-26E—maintain Add with target price of Rs 900, at 36 times FY26E earning per share..Click on the attachment to read the full IPO report:.Delta Corp Shares Surge To Five-Month High.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.

Happiest Minds Technologies - Valuation Can Remain Elevated: HDFC Securities

Happiest Minds has set up GenAI business unit as compared to peers that have predominantly set up a Center of Excellence in GenAI.

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