Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 26 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo
Stock Ticker - BSE: 543227 | NSE: HAPPSTMNDS

Happiest Minds Technologies Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 24, 2024, 8:36 pm

Market Cap 10,675 Cr.
Current Price 701
High / Low 961/692
Stock P/E49.7
Book Value 98.6
Dividend Yield0.82 %
ROCE21.8 %
ROE21.3 %
Face Value 2.00
PEG Ratio28.35

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Happiest Minds Technologies Ltd

Competitors of Happiest Minds Technologies Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Visesh Infotecnics Ltd 125 Cr. 0.33 0.95/0.33 1.140.00 %0.88 %0.82 % 1.00
Mudunuru Ltd 26.5 Cr. 8.50 15.6/6.35 0.340.00 %72.9 %374 % 2.00
Naapbooks Ltd 135 Cr. 149 159/32.357.8 20.0%17.4 %13.6 %
IDream Film Infrastructure Company Ltd 1.41 Cr. 93.8 98.0/85.0 2950.00 %%% 10.0
IB Infotech Enterprises Ltd 24.2 Cr. 189 245/11331.8 16.80.53 %69.9 %50.5 % 10.0
Industry Average39,605.68 Cr787.2696.30123.260.61%21.51%61.86%6.88

All Competitor Stocks of Happiest Minds Technologies Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales193208230250266287308338345342357370371
Expenses142153177192206214229254266262276298302
Operating Profit51555459607378837980817268
OPM %27%26%23%23%23%26%25%25%23%23%23%19%18%
Other Income833108171489142251
Interest1222222569101111
Depreciation5556677788899
Profit before tax53515060608170767373787499
Tax %21%27%30%26%25%23%25%27%22%29%26%26%20%
Net Profit42373544456253555751575580
EPS in Rs2.872.512.383.033.054.243.583.773.903.493.913.585.24

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales8691712703414314445906987611,0341,3331,440
Expenses371202392963394304615315995717881,0121,138
Operating Profit-29-51-69-2721-175999190246321302
OPM %-372%-75%-40%-10%1%0%-4%10%14%25%24%24%21%
Other Income0677101517-19523382296
Interest0011126168682241
Depreciation0245567202021243033
Profit before tax-29-47-66-2657-13475186251292324
Tax %0%0%0%0%0%43%0%0%3%13%26%26%
Net Profit-29-47-66-2654-13473162186216243
EPS in Rs-23.68-19.05-23.35-8.931.511.17-3.521.1114.8711.0312.7014.7316.22
Dividend Payout %0%0%0%0%0%0%0%0%0%26%29%36%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-62.07%-40.43%60.61%119.23%-20.00%-425.00%130.77%1725.00%121.92%14.81%16.13%
Change in YoY Net Profit Growth (%)0.00%21.64%101.03%58.62%-139.23%-405.00%555.77%1594.23%-1603.08%-107.10%1.31%

Happiest Minds Technologies Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:24%
5 Years:20%
3 Years:25%
TTM:6%
Compounded Profit Growth
10 Years:19%
5 Years:48%
3 Years:15%
TTM:-3%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:-19%
1 Year:-22%
Return on Equity
10 Years:25%
5 Years:30%
3 Years:26%
Last Year:21%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 11:36 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital566777692829293030
Reserves27637984156143-962205186417971,4441,472
Borrowings19374871951384061501932505435121,176
Other Liabilities26354951547195129168163208222316
Total Liabilities771401822133113604125089071,0831,5762,2082,993
Fixed Assets7878114461382963199203210
CWIP0000000000301
Investments2151687015516198834895241971971,010
Other Assets49821071351451552523873894951,1781,8071,773
Total Assets771401822133113604125089071,0831,5762,2082,993

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-94-88113150159172189
Cash from Investing Activity +95-30-72-284-111-342-506
Cash from Financing Activity +0118-13170-72102358
Net Cash Flow0-02736-24-6841

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-29.00-70.00-106.00-75.00-69.00-94.00-155.00-347.00-51.00-3.00-4.00-222.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days13812483735777796056575457
Inventory Days
Days Payable
Cash Conversion Cycle13812483735777796056575457
Working Capital Days817952596352762936495360
ROCE %-64%-84%-26%1%-1%-6%16%27%34%31%27%22%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters53.25%53.26%53.25%53.24%53.24%53.24%53.24%51.35%50.24%50.24%44.23%44.23%
FIIs6.93%6.29%4.00%3.94%4.07%4.15%4.52%5.14%5.05%4.69%5.31%5.33%
DIIs1.73%1.48%1.42%1.48%1.32%1.26%1.26%2.43%2.41%2.57%2.85%4.18%
Public35.06%36.08%38.55%38.65%38.74%38.84%38.68%38.94%40.20%40.58%45.82%44.61%
Others3.02%2.90%2.78%2.67%2.61%2.50%2.28%2.15%2.10%1.92%1.79%1.65%
No. of Shareholders6,04,0376,75,1227,18,6367,19,1977,12,8487,11,5686,96,7947,28,3167,36,1307,32,2537,59,6417,28,443

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
PGIM India Midcap Opportunities Fund776,2060.6868314,6492024-12-23146.69%
PGIM India Small Cap Fund379,4992.2733.25314,6492024-12-2320.61%
PGIM India Flexi Cap Fund314,6490.4627.56314,6492024-12-230%
PGIM India ELSS Tax Saver Fund68,5400.956314,6492024-12-23-78.22%
Nippon India Nifty Smallcap 250 Index Fund48,7180.44.27314,6492024-12-23-84.52%
Motilal Oswal Nifty Smallcap 250 Index Fund29,7860.392.61314,6492024-12-23-90.53%
SBI Nifty Smallcap 250 Index Fund24,7490.392.17314,6492024-12-23-92.13%
PGIM India Hybrid Equity Fund12,2750.511.08314,6492024-12-23-96.1%
ICICI Prudential Nifty Smallcap 250 Index Fund11,2970.390.99314,6492024-12-23-96.41%
Taurus Ethical Fund8,4830.490.74314,6492024-12-23-97.3%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)16.7316.1312.8411.757.04
Diluted EPS (Rs.)16.7316.0112.5511.455.36
Cash EPS (Rs.)20.5319.0415.0013.0620.92
Book Value[Excl.RevalReserv]/Share (Rs.)99.1158.5446.6638.4952.10
Book Value[Incl.RevalReserv]/Share (Rs.)99.1158.5446.6638.4952.10
Revenue From Operations / Share (Rs.)108.7899.7476.6454.52158.86
PBDIT / Share (Rs.)28.2026.5220.6615.2125.74
PBIT / Share (Rs.)24.3023.5918.3513.6121.14
PBT / Share (Rs.)22.4121.6217.2313.1116.75
Net Profit / Share (Rs.)16.6316.1212.7011.4516.32
NP After MI And SOA / Share (Rs.)16.6316.1212.7011.4516.32
PBDIT Margin (%)25.9226.5826.9527.8916.20
PBIT Margin (%)22.3323.6523.9424.9513.30
PBT Margin (%)20.6021.6722.4724.0510.54
Net Profit Margin (%)15.2816.1616.5621.0010.27
NP After MI And SOA Margin (%)15.2816.1616.5621.0010.27
Return on Networth / Equity (%)16.7827.5327.2129.7531.31
Return on Capital Employeed (%)21.5931.7534.5530.0031.32
Return On Assets (%)11.0514.0716.1017.6214.11
Long Term Debt / Equity (X)0.070.130.020.060.01
Total Debt / Equity (X)0.290.550.280.260.30
Asset Turnover Ratio (%)0.831.031.031.081.52
Current Ratio (X)3.141.862.532.672.10
Quick Ratio (X)3.141.862.532.672.10
Dividend Payout Ratio (NP) (%)34.6324.7437.690.000.00
Dividend Payout Ratio (CP) (%)28.0520.9431.900.000.00
Earning Retention Ratio (%)65.3775.2662.310.000.00
Cash Earning Retention Ratio (%)71.9579.0668.100.000.00
Interest Coverage Ratio (X)9.9617.3829.6330.9514.10
Interest Coverage Ratio (Post Tax) (X)6.5411.8619.8224.3111.35
Enterprise Value (Cr.)10218.9710778.2915080.347662.470.00
EV / Net Operating Revenue (X)6.297.5413.799.910.00
EV / EBITDA (X)24.2628.3751.1635.520.00
MarketCap / Net Operating Revenue (X)6.847.7013.779.910.00
Retention Ratios (%)65.3675.2562.300.000.00
Price / BV (X)7.5113.1222.6214.030.00
Price / Net Operating Revenue (X)6.847.7013.779.910.00
EarningsYield0.020.020.010.020.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Happiest Minds Technologies Ltd as of December 26, 2024 is: 1,052.35

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 26, 2024, Happiest Minds Technologies Ltd is Undervalued by 50.12% compared to the current share price 701.00

Intrinsic Value of Happiest Minds Technologies Ltd as of December 26, 2024 is: 1,070.80

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 26, 2024, Happiest Minds Technologies Ltd is Undervalued by 52.75% compared to the current share price 701.00

Last 5 Year EPS CAGR: 1.75%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (426.77 cr) compared to borrowings (279.85 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (291.23 cr) and profit (74.08 cr) over the years.
  1. The stock has a low average ROCE of -1.92%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 57.42, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 76.25, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Happiest Minds Technologies Ltd:
    1. Net Profit Margin: 15.28%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 21.59% (Industry Average ROCE: 21.51%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 16.78% (Industry Average ROE: 61.86%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 6.54
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 3.14
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 49.7 (Industry average Stock P/E: 96.3)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.29
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Happiest Minds Technologies Ltd. is a Public Limited Listed company incorporated on 30/03/2011 and has its registered office in the State of Karnataka, India. Company’s Corporate Identification Number(CIN) is L72900KA2011PLC057931 and registration number is 057931. Currently Company is involved in the business activities of Computer programming activities. Company’s Total Operating Revenue is Rs. 1033.54 Cr. and Equity Capital is Rs. 28.54 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Consulting & Software#53/1-4, Hosur Main Road, Bengaluru Karnataka 560068investors@happiestminds.com
http://www.happiestminds.com
Management
NamePosition Held
Mr. Ashok SootaExecutive Chairman
Mr. Joseph AnantharajuExec. Vice Chairman & CEO
Mr. Venkatraman NarayananManaging Director & CFO
Mrs. Anita RamachandranIndependent Director
Mr. Rajendra Kumar SrivastavaIndependent Director
Ms. Shubha Rao MayyaIndependent Director

FAQ

What is the latest intrinsic value of Happiest Minds Technologies Ltd?

The latest intrinsic value of Happiest Minds Technologies Ltd as on 26 December 2024 is ₹1052.35, which is 50.12% higher than the current market price of ₹701.00. The stock has a market capitalization of 10,675 Cr. and recorded a high/low of 961/692 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹1,472 Cr and total liabilities of ₹2,993 Cr.

What is the Market Cap of Happiest Minds Technologies Ltd?

The Market Cap of Happiest Minds Technologies Ltd is 10,675 Cr..

What is the current Stock Price of Happiest Minds Technologies Ltd as on 26 December 2024?

The current stock price of Happiest Minds Technologies Ltd as on 26 December 2024 is 701.

What is the High / Low of Happiest Minds Technologies Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Happiest Minds Technologies Ltd stocks is 961/692.

What is the Stock P/E of Happiest Minds Technologies Ltd?

The Stock P/E of Happiest Minds Technologies Ltd is 49.7.

What is the Book Value of Happiest Minds Technologies Ltd?

The Book Value of Happiest Minds Technologies Ltd is 98.6.

What is the Dividend Yield of Happiest Minds Technologies Ltd?

The Dividend Yield of Happiest Minds Technologies Ltd is 0.82 %.

What is the ROCE of Happiest Minds Technologies Ltd?

The ROCE of Happiest Minds Technologies Ltd is 21.8 %.

What is the ROE of Happiest Minds Technologies Ltd?

The ROE of Happiest Minds Technologies Ltd is 21.3 %.

What is the Face Value of Happiest Minds Technologies Ltd?

The Face Value of Happiest Minds Technologies Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Happiest Minds Technologies Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE