In Friday’s trading session, the shares of a digital transformation and IT solutions company received a buy call from Trade Brains analysts for a potential upside of 75 percent.
With a market capitalisation of Rs. 12,606.8 crore, the shares of Happiest Minds Technologies Limited has given nearly 1.3 percent of positive returns.
The analysts of Trade Brains gave a ‘buy’ rating on Happiest Minds Technologies with a target price of Rs. 1,450 per share, representing an upside of nearly 76 percent, from the current trading price of Rs. 828.
The analysts expect Happiest Minds to grow its revenues by 35-40 percent in FY24-25, with margins in the range of 22-24 percent. The company also aims to reach $1 billion in revenue within the next 7-8 years.
In the financial year 2023-24, Happiest Minds achieved strong industry-leading revenue growth of 11 percent in constant currency terms. This growth was largely driven by recent acquisitions made by the company in the early part of FY24-25.
Through the latest mergers and acquisitions, Happiest Minds aims to strengthen its presence in its key verticals including banking, financial services, insurance, healthcare, and life sciences. The analysts expect to see higher revenue contributions from the healthcare and life sciences segment going forward.
As of FY23-24, the company presently serves 14 active clients across various industries, encompassing 20 projects within its Generative AI Business Services division.
Looking ahead, the company aims to expand its workforce to 250 employees in these specific segments by the end of the fiscal year 2024-2025.
In terms of financials, the consolidated revenue from operations stood at Rs. 417.3 crore in Q4 FY23-24, rising by 10.4 percent YoY from Rs. 378 crore in Q4 FY22-23, and the after-tax profit grew by 24.8 percent to Rs. 72 crore from Rs. 57.66 crore, during the same period.
Further, on a year-on-year basis, the Earnings Before Interest, Taxes, Depreciation, and Amortisation, or EBITDA climbed from Rs. 100.6 crore in Q4 FY22-23 to Rs. 108.2 crore in Q4 FY23-24, representing a growth of 7.6 percent.
The stock has delivered negative returns of nearly 17 percent in one year, as well as around 8.5 percent in the last six months. So far in 2024, the shares of Happiest Minds Technologies have given about 8.5 percent of negative returns.
Happiest Minds Technologies Limited is engaged in next-generation IT solutions & services, enabling organisations to capture the business benefits of emerging technologies of cloud computing, social media, mobility solutions, business intelligence, analytics, unified communications and Internet of Things.
Written by Shivani Singh
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