Buy Happiest Minds, target price Rs 790: Anand Rathi

Anand Rathi has a buy call on Happiest Minds Technologies with a target price of Rs 790. The current market price of Happiest Minds Technologies is Rs 635.9. The time period given by the analyst is a year when Happiest Minds Technologies price can reach the defined target. Happiest Minds, incorporated in 2011, is a Small Cap company with a market cap of Rs 9699.14 crore, operating in the IT Software sector.

Happiest Minds’ key products/revenue segments include I T Enabled Services for the year ending 31-Mar-2024.

Financials
For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 570.52 crore, up 3.02% from last quarter Total Income of Rs 553.77 crore and up 28.93% from last year same quarter Total Income of Rs 442.50 crore. The company has reported net profit after tax of Rs 34.00 crore in latest quarter. The company’s top management includes Mr.Ashok Soota, Mr.Joseph Anantharaju, Mr.Venkatraman Narayanan, Mrs.Anita Ramachandran, Mr.Rajendra Kumar Srivastava, Ms.Shubha Rao Mayya. Company has Deloitte Haskins & Sells LLP as its auditors. As on 31-03-2025, the company has a total of 15 Crore shares outstanding.

Investment Rationale
Inorganic growth is driving improved business mix towards BFSI and healthcare (~42% of revenue in Q4 FY25 vs. 27.5% in Q4 FY24). Verticalized organization structure will improve client mining and drive sales efficiency. Appointment of CGO to help in net new client opportunities and drive cross-sell across business units. The dedicated AI business unit reinforces the company’s commitment to leverage AI for winning deals.Valuations
Anand Rathi applies ~35x P/E multiple ( ~40% discount to 5 yr. avg. of~57x. ) to FY27e Adj. EPS of Rs22.7, intrinsic value works out to Rs 802. Basis DCF, intrinsic price works out to ~ Rs779. The brokerage has a target price of Rs 790 (implying a 31.5% upside from the current price), basis 50% weight each to DCF and the Multiple method.