Happiest Minds Tech IPO Review

Sathish - Wealth Consultant, Author - Untold Wealth Secret, Investment consultant, Mutual Funds

Happiest Minds Tech IPO Review

Company Overview:

Happiest Minds Technologies is a digital transformation, infrastructure, security and product engineering services company. It has capabilities to provide end-to-end solutions in digital space

It supports the customers in innovating new ways to interact with their clients which makes them more clients responsive and engaging. Company is headquartered in Bangalore, India and has its operations in the US, UK, Canada, Singapore and Australia.

Objects of the Issue:

The object of the issue is to harness the benefits of listing the equity shares on the exchanges.

The net proceeds from the issue will be utilised for:

a) Meet long term working capital requirement (INR 1bn)

b) General corporate purposes

Outlook and Valuation:

Happiest Minds Technologies repeat business (revenue from current customers) has steadily grown and contributed a significant portion of its revenue from contracts with customers over the fiscal which highlights a high degree of customer stickiness.

Company is valued at P/E of 34.5x based on diluted EPS of FY20 as compared to industry average of 26.9x.

Competitive Strengths

1. Focused on software product development
2. Strong Brand in offering Digital IT services
3. Agile Engineering and Delivery

4. Company Revenue grew at 23% of CAGR over FY 19 – 20

5. Customer has 148 Active Clients and company has high degree of customer stickiness.

6. Company EBITDA grew by 77% YOY to INR of 971 Mn in FY 20.

7. Over the last few years this company shown significant improvements in its fiscal performance over recent Fiscal Year.

Based on positive sentiments around the IT industry and new technologies, I believe this would be a good opportunity for investors who look for listing gains and long term appreciation.

To open a Demat and Invest in Direct Stocks with my Recommendation


Sathish Kumar

Equity Fund Manager | Wealth Consultant | Author

Whats app / Call – 9841058689


This blog is for information purpose only. There are no guarantee about the performance of the stock, pls do your due diligence and research before you do a buy. IPO Investment are subject to market risk and company risk.

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