Accumulate Happiest Minds Technologies; target of Rs 803: KR Choksey

KR Choksey recommended accumulate rating on Happiest Minds Technologies with a target price of Rs 803 in its research report dated November 15, 2024.

Broker Research

November 15, 2024 / 13:24 IST

Accumulate

26 Aug, 2025 12:21

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KR Choksey's research report on Happiest Minds Technologies

HAPPSTMN Q2FY25 earnings fell short of our estimates, despite a beat on top line. In Q2FY25, HAPPSTMNDS reported a revenue of INR 5,216 Mn, up 28.3% YoY (+12.5% QoQ), beating our estimates. EBIT beat our estimate and stood at INR 687 Mn, up 0.9% YoY (+9.4% QoQ). EBIT margin stood at 13.2% (-357bps YoY/-37bps QoQ). PAT declined by 15.3% YoY (-3.0% QoQ) to INR 495 Mn, missing our estimates due to higher interest expense and tax rates. PAT margin down 488bps YoY (-151bps QoQ) to 9.5%. We retain our P/E multiple of 32.0x but lower our FY26E EPS to INR 25.1 (previously: INR 26.1), reflecting weaker-than-anticipated earnings growth amid margin pressures.

Outlook

Accordingly, we lower our target price to INR 803 (previously: INR 834), implying an upside of 8.5% from CMP. However, we maintain our ACCUMULATE” rating on the shares of Happiest Minds Technologies Ltd as we believe that the company would continue to venture into new markets creating newer opportunities through its acquired entities.

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