Buy Happiest Minds; target of Rs 670: Choice Equity Broking

Choice Equity Broking is bullish on Happiest Minds has recommended buy rating on the stock with a target price of Rs 670 in its research report dated October 29, 2025.

Broker Research

October 30, 2025 / 10:44 IST

buy

26 Aug, 2025 12:21

Volume

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Choice Equity Broking's report on Happiest Minds

HAPPSTMN continued its transformational makeover, resulting in 30 new client additions in H1FY26. The new clients represent incremental revenue potential of about USD 50–60Mn over the next 3–4 years. Thus, taking cognizance of the sales potential within Gen AI Business unit (GBS) and strong Net New (NN) pipeline, the company has extended its earlier commitment of double-digit growth from 3 consecutive years to 4 years now. However, the company will invest in its strategic transformational initiatives in the near term, which we believe would keep the EBITDA margin at the lower end of its guided range of 20–22% (including other income).

Outlook

Hence, we have revised down our margin estimates and expect Revenue/EBIT/PAT to grow at a CAGR of 14.3%/21.8%/25.9%, respectively, for FY25–FY28E. Thus, we maintain our BUY rating with a revised target price of INR670 (earlier INR730), maintaining PE multiple of 30x, based on the FY27E and FY28E average EPS of INR 22.3.

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