ICICI Securities research report on Happiest Minds Technologies
Happiest Mind’s (HAPPSTMN) operating performance undershot estimates with both margin and revenue missing their marks. In addition, M&A-led one-time charges and higher depreciation and amortisation charges led to a 30% miss on PAT vs. our estimates. Management trimmed FY25 revenue guidance to 30–35% vs. its earlier envisaged 35–40% YoY growth, citing delay in consolidation of acquired entities. Management expects continued business momentum. We cut our FY25/26 EPS estimates by 19%/15%, factoring in the Q1FY25 operational miss and higher depreciation charges going ahead.
Outlook
We forecast 31%/25% USD revenue growth for FY25/FY26 and introduce our FY27 forecast with INR 28.6 EPS. Retain HOLD with a revised TP of INR 750 (average of P/E INR 610 and DCF of INR 890).
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