Angel Broking's IPO report on Happiest Mind Technologies
Happiest mind is a small sized IT services company promoted by Mr. Ashok Soota who was one of the founding members of Mindtree Ltd. Happiest Mind is uniquely positioned as derived 96.6% of its revenues in FY2020 from digital services that are expected to be the fastest growing segment in the IT sector. The company has been positioned as “Born Digital. Born Agile” and focuses on delivering a seamless digital experience to its customers. The company’s offerings include digital business, product engineering, infrastructure management and security services among others. We believe that strong presence across digital technologies will help the company to grow at a faster rate as compared to the Industry.
Valuation and Outlook
At upper price band, it is offered at 23.6x FY2020 EPS, demanding market cap of `2,438cr, which is at a slight premium to few of the smaller sized IT companies. Considering the very high exposure to digital services and strong promoter background, we expect that the company will continue to grow at a faster pace as compared to similar sized companies and therefore should command a premium valuation to peer group. We would therefore recommend investors to SUBSCRIBE to the IPO.
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