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Happiest Minds Technology down by 48%
- In last 1 year (May’23- May’24), company has given negative 9.40 % returns to their investors.
- Company launched its IPO on Sept 2020 at ₹358, since then share price grew by 340% to a level of ₹1580 (Sept 2020 – Sept 2021)
- From the all time high of 1580, Happiest Minds Technology share price is down by 48% to the current level of ₹818 level.
About Company
- Happiest Minds Technology incorporated in 2011
- It is a next generation IT solutions & services Company
- Company offers IPs and domain expertise across a set of focused areas that include Digital Transformation & Enterprise Solutions, Product Engineering, Infrastructure Management, Security, Testing and Consulting.
- In the Solution space, focus areas are Security, M2M and Mobility solutions.
- Company is an authorized partner with global information technology players to deploy their services and create custom solutions
Technology Offered
- Analytics
- Artificial Intelligence
- Automation
- Cloud
- Digital Infrastructure Management
- Internet of Things
- Security
- Software product engineering
Clients
- The company has 244 active clients.
- Out of these, 57 companies are Fortune2000 / Forbes200 Billion dollar corporations
- ~88% is repeat business
- ~53% clients are >5 yrs old.
Revenue Mix
1) Product Wise Breakup (Link)
a) Product Engineering Services (PES): This unit assists software product companies in building products and services that integrate mobile, cloud and social technologies
b) Digital Business Services (DBS): DBS unit provides advisory, design and architecture, custom-app development, package implementation, testing and on-going support services to IT initiatives
c) Infrastructure Management & Security Services (IMSS): This delivers integrated end-to-end infrastructure and security solutions with specialization in cloud, virtualization and mobility across a multitude of industry verticals and geographies.
2) Location Wise Breakup
3) User Industries
Key Ratios
| Market Cap | ₹ 12,461 Cr. |
| Current Price | ₹ 818 |
| High/Low | ₹ 1,023 / 738 |
| Stock PE | 52.3 |
| Industry PE | 36 |
| ROCE | 21.6 % |
| ROE | 20.6 % |
| PEG Ratio | 0.95 |
| Debt To Equity | 0.35 |
Shareholding Pattern
Change In Shareholding Pattern
| Jun-21 | Mar-24 | Change |
| Promoters + | 53.25% | 50.24% | -3.01% |
| FIIs + | 6.23% | 4.69% | -1.54% |
| DIIs + | 4.02% | 2.57% | -1.45% |
| Public + | 33.20% | 40.58% | 7.38% |
Promoters
- Jun-21: 53.25%
- Mar-24: 50.24%
- Change: -3.01%
Analysis: Promoter holdings decreased by 3.01%. This reduction could indicate that promoters have sold some of their shares, potentially to raise capital, diversify their investments, or in response to regulatory requirements or strategic decisions.
Foreign Institutional Investors (FIIs)
- Jun-21: 6.23%
- Mar-24: 4.69%
- Change: -1.54%
Analysis: FII holdings decreased by 1.54%. This decline might be due to several factors including changes in market sentiment, global economic conditions, or reallocations within FII portfolios favoring other regions or assets.
Domestic Institutional Investors (DIIs)
- Jun-21: 4.02%
- Mar-24: 2.57%
- Change: -1.45%
Analysis: DII holdings decreased by 1.45%. Similar to FIIs, this could reflect shifts in investment strategies, possibly due to changing market conditions, performance of the company, or a preference for other investment opportunities.
Public
- Jun-21: 33.20%
- Mar-24: 40.58%
- Change: +7.38%
Analysis: Public holdings increased by 7.38%. This significant increase suggests a higher level of retail investor interest and participation in the company. It could be due to various reasons including improved public perception, marketing efforts, or a favorable stock performance attracting more individual investors.
Financial Trend
Revenue
- Old Value (Mar-20): 698 Crore
- New Value (Mar-24): 1,625 Crore
- Revenue increased by approximately 132.81% from March 2020 to March 2024.
Net Profit
- Old Value (Mar-20): 72 Crore
- New Value (Mar-24): 248 Crore
- Net Profit increased by approximately 244.44% from March 2020 to March 2024
Company Valuation
Technical Chart
- Made all time high of 1580 on July 2021
- Since then share price is down by 48% to a current level of 818
- As per the chart, share price is near to the support level of 735
Median Price to Earning Ratio
- Current PE- 52.3 (Blue Line)
- Median PE- 57.9 (Red Line)
- As the current PE is less than the Median PE, company is undervalued.
What Should Investors Do ?
- As the company is next generation IT solution provider in AI , ML which is going to be the boom in the coming decade, So Happiest Minds Technology will play grow as the sector itself is growing.
- Revenue & Net Profit have been increasing by 132% & 244% respectively which will definitely grow in the near future.
- Stock price is corrected by 48% so at the current price level of 800 is the right time to accumulate the stock.
- Company is undervalued as the current PE is less than the median PE.
- Happiest Minds Technology stock price may double in next 2 years as the net profit has more than triple but the stock price just doubled in last 5 years.
- Consider this stock in your portfolio if you are a long term investor.
Check this out- Affle India 572% returns in 5 years_Fundamental Analysis
Disclaimer
- Money Minded School is not a SEBI registered investment advisor, Please do your own research before investing
- This article is a complete guide about Happiest Minds Technology.
- These information and forecasts are based on our analysis, research, company fundamentals and history, experiences, and various technical analyses.
- Also, We have talked in detail about the share’s future prospects and growth potential.
- Hopefully, this information will help you in your further investment.
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