Buy Happiest Minds Ltd for Target Rs.670 by Choice Institutional Equities
FY26E Double-digit Growth Guidance Intact on AI & Net New Wins:
HAPPSTMN, since its IPO, witnessed 21st consecutive quarter of QoQ growth in Q2FY26. It remains confident on double-digit CC growth in FY26E supported by good deal closures. HAPPSTMN made 30 new client additions in H1FY26, which represents incremental revenue potential of about USD 50–60Mn in next 3-4 years. It has reiterated 20– 22% EBITDAM guidance despite wage hikes and investments..
View & Valuation: HAPPSTMN is undergoing a significant transformation, which include vertical reorganisation, new client acquisitions and a focused Gen AI push. We expect Revenue/EBIT/PAT to expand at a CAGR of 14.3%/21.8%/25.9% for FY25–FY28E. We maintain BUY with a revised TP of INR 670, based on 30x FY27–28E avg. EPS of INR 22.3.
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SEBI Registration no.: INZ 000160131
