ICICI Securities Limited Buy Call: Happiest Minds Technologies Share Price Target at Rs 1038.
ICICI Securities Limited recently issued Buy Call on Happiest Minds Technologies, along with a new Target Price for the company. Now, let’s examine the research reports and explore their overviews.
Happiest Minds Technologies Ltd is a renowned global digital transformation and IT services company. It was founded in 2011 by Ashok Soota, a veteran in the IT industry. The company’s headquarters is located in Bangalore, India.
Happiest Minds Technologies serves clients across various industries, including banking, healthcare, retail, and manufacturing. They offer a wide range of products and services to help businesses leverage the power of technology. Their expertise lies in digital services, product engineering, infrastructure management, security, and testing.
First of all, let’s take a look at the current share price of Happiest Minds Technologies. To visualize these changes, we can refer to the Happiest Minds Technologies Share chart which displays the historical share prices, indicating the ups and downs over time.
Research Report
ICICI Securities Limited’s Report Overview
Happiest Minds Technologies Ltd is a digital transformation and IT services company with a strong leadership team that possesses extensive experience in scaling up IT services businesses. The top management, with a collective industry experience of around 30-40 years, has successfully expanded companies like Mindtree and Wipro.
Currently, Happiest Minds Technologies is trading at a forward price-to-earnings (P/E) multiple of 41x, lower than its two-year average of 64x. The company’s higher valuation compared to peers can be attributed to its potential for high growth, as indicated by its guidance of 25% revenue growth in FY24, and superior margins compared to competitors.
The company’s long-term growth potential is reflected in its management’s vision of achieving $1 billion in revenues within the next 10 years. Despite its smaller revenue size compared to peers, Happiest Minds Technologies is valued in line with its industry counterparts on the price-to-earnings growth (PEG) metric.
Based on our analysis, we have set a target price of Rs1,038, implying a forward P/E multiple of 42x on the FY25E earnings per share (EPS) of Rs24.9. This target price aligns with the current forward multiple of 41x and the two-year average of 64x for Happiest Minds Technologies. The P/E multiple of 42x is supported by the estimated EPS compound annual growth rate (CAGR) of 25% from FY23 to FY26, resulting in a PEG multiple of 1.4x, comparable to the broader Indian IT sector.
ICICI Securities Limited Buy Call: Happiest Minds Technologies
Happiest Minds Technologies’ current market price is Rs 890. Recently, ICICI Securities Limited recently issued Buy Call on Happiest Minds Technologies with a new Target Price of Rs 1,038.
| Company | Happiest Minds Technologies |
|---|---|
| AUTHOR | ICICI Securities Limited |
| DATE | 30 May 2023 |
| Current Price | Rs 890 |
| TARGET | Rs 1,038 |
| Type | Buy |
| Report |
Here’s a table summarizing the ownership structure of the company.
| Shareholding Pattern | Sep ’22 | Dec ’22 | Mar ’23 |
|---|---|---|---|
| Promoters | 53.3% | 53.3% | 53.2% |
| Institutional investors | 5.4% | 5.4% | 5.4% |
| MFs and others | 1.1% | 0.9% | 0.8% |
| FIs/Bank | 0.0% | 0.0% | 0.0% |
| Insurance Cos. | 0.4% | 0.4% | 0.5% |
| FIIs | 3.9% | 4.1% | 4.1% |
| Others | 41.2% | 41.3% | 41.4% |
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Disclaimer:– This Share Price Target price should not be taken as a guarantee or prediction of future stock performance, nor should it be considered as investment advice. Sharedhan.com or its representatives shall not be held liable for any losses or damages incurred as a result of reliance on this share price target price.
