HAPPIEST MINDS TECHNOLOGIES

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We present to you IPO / Public Issue Reviews & Ratings of HAPPIEST MINDS TECHNOLOGIES

ICICI Direct Analyst Devang Bhat without giving any rating said,
At the higher end of the price band of | 166, the stock is available at a PE of ~31x on FY20 diluted EPS.

HDFC Securities - No Rating

Axis Capital - No Rating

Rishi Jhunjhunwala at IIFL Capital said,
The price band is Rs165-166. Considering FY20 adjusted EPS of Rs6.2, the price band implies a P/E ratio of 26.6X, comparable to its larger mid-cap peers such as LTI, Mindtree and NIIT Tech. Based on management comments, the implied P/E multiple for Happiest Minds
is ~12X if we annualize 1QFY21 EPS.

Sneha Poddar of Motilal Oswal said,
At the higher end of the price band, the issue is valued at 29x FY20 P/E (fully diluted), which is comparable to larger mid-sized IT
companies. We like the company given its (1) strong presence in digital services, (2) scalable business model with end-to-end capabilities and (3) fast improving financial performance. Hence, investors can Subscribe to the IPO. Further considering market conditions and bright prospects for IT companies post Covid-era, one may also get listing gains.

SMC has a 3/5 Rating with the following note,
The company is a versatile digital business, product engineering and infra management solution provider company. Digital is growing much faster than traditional business of the company. As much as 97% of the company’s revenue comes from digital, where as the average contribution from digital stands at 40-50%. The company has adopted a mindful IT strategy for its future growth. On the flip
side, the company intends to raise Rs 702 crore from the issue, of which 592 crore is offer for sale.

DealMoney Research said,
In FY20, the company had delivered 87.9% of its projects through agile delivery methodology. Over the years and currently during the ongoing outbreak of Novel Coronavirus, it has successfully implemented its business continuity plans including to achieve efficient work-from-home practices to ensure connectivity across the enterprise. Based on FY20 consolidated numbers, the issue is priced at a P/E of 31x. at diluted EPS of FY20 Which is priced fairly therefore we recommend SUBSCRIBE over the issue for a long term perspective.

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Choice Broking Analyst Rajnath Yadav has a SUBSCRIBE rating with the following note,
At the higher price band of Rs. 166 per share, HMTL's share is valued at a P/E multiple of 29.4x (to its restated FY20 EPS of Rs. 5.6), which is at premium to peer average of 25.9x.

Sushil Finance Analyst Krishna Rana said,
In last three Fiscals Company grew at ~ 23% CAGR, ROCE of around 29%. The issue is priced slightly expensive at a P/BV of 6.38 and asking price is  at P/E of around 36x against the average industry P/E of 27. Happiest Minds has good business prospects as e-commerce and digital service providers are seen as growing sectors. The sector has shown growth even during the pandemic. Investors can apply for medium term horizon.