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Last Updated on: 28 February, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 543227 | NSE: HAPPSTMNDS

Fundamental Analysis of Happiest Minds Technologies Ltd

About the Company - Happiest Minds Technologies Ltd

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 Enabled Services#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

Happiest Minds Technologies Ltd. Share Price Update

Share PriceValue
Today₹842.05
Previous Day₹853.05

Basic Stock Data of Happiest Minds Technologies Ltd

Market Cap 13,265 Cr.
Current Price 871
High / Low1,023/763
Stock P/E54.8
Book Value 90.4
Dividend Yield0.61 %
ROCE27.4 %
ROE28.9 %
Face Value 2.00

Data Source: screener.in

Competitors of Happiest Minds Technologies Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Rolta India Ltd 62.2 Cr. 3.754.06/1.45 5470.00 %6.48 %% 10.0
3i Infotech Ltd 882 Cr. 52.263.9/25.9 25.20.00 %2.59 %0.45 % 10.0
Newgen Software Technologies Ltd 11,688 Cr. 834901/21355.0 69.10.30 %24.0 %20.0 % 10.0
Ace Software Exports Ltd 43.7 Cr. 93.493.4/14.513.2 45.80.00 %1.29 %0.81 % 10.0
Infosys Ltd 6,97,228 Cr. 1,6801,733/1,18528.6 1932.03 %40.5 %31.8 % 5.00
Industry Average141,980.78 Cr532.6719.36176.020.47%14.97%10.61%9.00

Happiest Minds Technologies Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales183193208230250266287308338345342357370
Expenses139142153177192206214229254266262276298
Operating Profit44515554596073788379808172
OPM %24%27%26%23%23%23%26%25%25%23%23%23%19%
Other Income58331081714891422
Interest212222225691011
Depreciation5555667778889
Profit before tax43535150606081707673737874
Tax %20%21%27%30%26%25%23%25%27%22%29%26%26%
Net Profit34423735444562535557515755
EPS in Rs2.322.872.512.383.033.054.243.583.773.903.493.913.58

Happiest Minds Technologies Ltd Quarterly Chart

Happiest Minds Technologies Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales8691712703414314445906987611,0341,3331,414
Expenses371202392963394304615315995717881,0121,102
Operating Profit-29-51-69-2721-175999190246321312
OPM %-372%-75%-40%-10%1%0%-4%10%14%25%24%24%22%
Other Income0677101517-19523382253
Interest0011126168682236
Depreciation0245567202021243032
Profit before tax-29-47-66-2657-13475186251292298
Tax %0%0%0%0%0%43%0%0%3%13%26%26%
Net Profit-29-47-66-2654-13473162186216220
EPS in Rs-23.68-19.05-23.35-8.931.511.17-3.521.1114.8711.0312.7014.7314.88
Dividend Payout %0%0%0%0%0%0%0%0%0%26%29%36%

Happiest Minds Technologies Ltd 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 Growth

Compounded Sales Growth
10 Years:35%
5 Years:25%
3 Years:24%
TTM:13%
Compounded Profit Growth
10 Years:21%
5 Years:63%
3 Years:37%
TTM:9%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:35%
1 Year:3%
Return on Equity
10 Years:24%
5 Years:37%
3 Years:32%
Last Year:29%

Happiest Minds Technologies Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital25667776928292930
Reserves7727637984156143-962205186417971,348
Preference Capital161629343441412236000
Borrowings03713365497384114193250543539
Other Liabilities254265848595112118165168163208220
Total Liabilities104771401822133113604125089071,0831,5762,136
Fixed Assets27878114461382963199211
CWIP0000000000033
Investments89215168701551619883489524197197
Other Assets1449821071351451552523873894951,1781,725
Total Assets104771401822133113604125089071,0831,5762,136

Happiest Minds Technologies Ltd Reserves and Borrowings Chart

Happiest Minds Technologies Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -59-94-88113150159172
Cash from Investing Activity 6295-30-72-284-111-342
Cash from Financing Activity 00118-13170-72102
Net Cash Flow40-02736-24-68

Happiest Minds Technologies Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days171138124837357777960565754
Inventory Days
Days Payable
Cash Conversion Cycle171138124837357777960565754
Working Capital Days-838179525963527629364953
ROCE %-64%-84%-26%1%-1%-6%16%27%34%31%27%

Happiest Minds Technologies Ltd Financial Efficiency Indicators Chart

Happiest Minds Technologies Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters53.25%53.25%53.25%53.25%53.26%53.25%53.24%53.24%53.24%53.24%51.35%50.24%
FIIs7.07%6.23%7.05%6.93%6.29%4.00%3.94%4.07%4.15%4.52%5.14%5.05%
DIIs7.38%4.02%2.07%1.73%1.48%1.42%1.48%1.32%1.26%1.26%2.43%2.41%
Public32.30%33.20%34.46%35.06%36.08%38.55%38.65%38.74%38.84%38.68%38.94%40.20%
Others0.00%3.30%3.16%3.02%2.90%2.78%2.67%2.61%2.50%2.28%2.15%2.10%
No. of Shareholders2,06,8483,43,5345,27,5096,04,0376,75,1227,18,6367,19,1977,12,8487,11,5686,96,7947,28,3167,36,130

Happiest Minds Technologies Ltd Shareholding Pattern Chart

No. of Happiest Minds Technologies Ltd Shareholders

Happiest Minds Technologies Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
PGIM India Midcap Opportunities Fund7762060.763.59
PGIM India Small Cap Fund3794991.8831.09
PGIM India Flexi Cap Fund3146490.4625.78
PGIM India ELSS Tax Saver Fund473400.73.88
Nippon India Nifty Smallcap 250 Index Fund395750.453.24
Motilal Oswal Nifty Smallcap 250 Index Fund248460.452.04
SBI Nifty Smallcap 250 Index Fund182360.451.49
PGIM India Hybrid Equity Fund122750.491.01
Motilal Oswal Nifty 500 Index Fund27140.040.22
L&T Conservative Hybrid Fund - Regular Plan15000.380.15

Happiest Minds Technologies Ltd ROCE Trend

Happiest Minds Technologies Ltd EPS Trend

Happiest Minds Technologies Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)16.1312.8411.757.041.89
Diluted EPS (Rs.)16.0112.5511.455.361.16
Cash EPS (Rs.)19.0415.0013.0620.9213.06
Book Value[Excl.RevalReserv]/Share (Rs.)58.5446.6638.4952.10-29.60
Book Value[Incl.RevalReserv]/Share (Rs.)58.5446.6638.4952.10-29.60
Revenue From Operations / Share (Rs.)99.7476.6454.52158.86197.78
PBDIT / Share (Rs.)26.5220.6615.2125.7422.20
PBIT / Share (Rs.)23.5918.3513.6121.1413.90
PBT / Share (Rs.)21.6217.2313.1116.754.35
Net Profit / Share (Rs.)16.1212.7011.4516.324.76
NP After MI And SOA / Share (Rs.)16.1212.7011.4516.324.76
PBDIT Margin (%)26.5826.9527.8916.2011.22
PBIT Margin (%)23.6523.9424.9513.307.02
PBT Margin (%)21.6722.4724.0510.542.19
Net Profit Margin (%)16.1616.5621.0010.272.40
NP After MI And SOA Margin (%)16.1616.5621.0010.272.40
Return on Networth / Equity (%)27.5327.2129.7531.31-16.08
Return on Capital Employeed (%)31.7534.5530.0031.32-224.20
Return On Assets (%)14.0716.1017.6214.113.43
Long Term Debt / Equity (X)0.130.020.060.01-0.43
Total Debt / Equity (X)0.550.280.260.30-1.41
Asset Turnover Ratio (%)0.981.031.081.521.48
Current Ratio (X)1.862.532.672.100.77
Quick Ratio (X)1.862.532.672.100.77
Dividend Payout Ratio (NP) (%)24.7437.690.000.000.00
Dividend Payout Ratio (CP) (%)20.9431.900.000.000.00
Earning Retention Ratio (%)75.2662.310.000.000.00
Cash Earning Retention Ratio (%)79.0668.100.000.000.00
Interest Coverage Ratio (X)17.3829.6330.9514.104.16
Interest Coverage Ratio (Post Tax) (X)11.8619.8224.3111.352.68
Enterprise Value (Cr.)10778.2915080.347662.470.000.00
EV / Net Operating Revenue (X)7.5413.799.910.000.00
EV / EBITDA (X)28.3751.1635.520.000.00
MarketCap / Net Operating Revenue (X)7.7013.779.910.000.00
Retention Ratios (%)75.2562.300.000.000.00
Price / BV (X)13.1222.6214.030.000.00
Price / Net Operating Revenue (X)7.7013.779.910.000.00
EarningsYield0.020.010.020.000.00

Happiest Minds Technologies Ltd Profitability Ratios (%)

Happiest Minds Technologies Ltd Liquidity Ratios

Happiest Minds Technologies Ltd Liquidity Ratios (%)

Happiest Minds Technologies Ltd Interest Coverage Ratios (X)

Happiest Minds Technologies Ltd Valuation Ratios

Fair Value / Intrinsic Value of Happiest Minds Technologies Ltd

Fair Value: ₹1440.42

The stock is undervalued by 65.37% compared to the current price ₹871

*Investments are subject to market risks

Strength and Weakness of Happiest Minds Technologies Ltd

StrengthWeakness
  1. The company has higher reserves (312.08 cr) compared to borrowings (20.69 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 is trading at a high valuation with an average P/B ratio of 18.12 and average Dividend Yield of 18.57%.
  2. The stock has a low average ROCE of -3.75%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 45.50, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 85.75, which may not be favorable.

Should I Buy Happiest Minds Technologies Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Happiest Minds Technologies Ltd:
    1. Net Profit Margin: 16.16%
      • 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: 31.75% (Industry Average ROCE: 24.84%)
      • 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. Interest Coverage Ratio (Post Tax): 11.86
      • 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.
    4. Quick Ratio: 1.86
      • 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.
    5. ✗ Stock P/E: 52.7 (Industry average Stock P/E: 26.22)
      • 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.
    6. ✓ Total Debt / Equity: 0.55
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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