Reduce Happiest Minds Technologies: target of Rs 610: ICICI Securities

ICICI Securities recommended reduce rating on Happiest Minds Technologies with a target price of Rs 610 in its research report dated February 06, 2025.

Broker Research

February 06, 2025 / 21:00 IST

Reduce

26 Aug, 2025 12:21

Volume

Todays L/H

ICICI Securities's research report on Happiest Minds Technologies

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. We model 14-15% growth for FY26/27E; cut EPS by 12%/14.6% for FY26/27E, led by cut in revenue estimates and ~100bps cut in margin.

Outlook

We arrive at revised TP of INR 610 (average of P/E based TP of INR 570 and DCF-based TP of INR 640) and downgrade to REDUCE (earlier: Hold) due to growth challenges in organic portfolio (~17% exposure to low growth in edutech vertical and sub-scale presence in larger accounts in higher growth verticals of BFSI, retail and hitech) and higher reliance on inorganic acquisition to meet the long-term growth target.

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