Happiest Minds Technologies share price tag surged one more 11 per cent to hit a fresh 52-week of Rs 538 apiece on BSE in an otherwise variety bound trade on Thursday. In the prior session the stock zoomed 20 per cent just after the brokerage firm Nomura initiated coverage with a ‘buy’ rating to it. So far in intraday offers, 7.40 lakh shares have traded on BSE, whilst 99.34 lakh shares have exchanged hands on National Stock Exchange (NSE). Since Monday final week, Happiest Minds Technologies stock price tag has rallied almost 55 per cent from Rs 348 to Rs 538 apiece. Nomura expects the firm to develop at double the pace of big caps.
“While the recent run-up in the stock is likely to limit the upside in the near term (2.5x of the IPO price),” analysts at Nomura mentioned. Happiest Minds Technologies share price tag has now zoomed 224 per cent or 3 instances from its IPO price tag of Rs 166 apiece. The stock was listed at Rs 351, with a listing premium of 111 per cent. The situation was subscribed 151 instances through its 3-day bidding procedure. Happiest Minds Technologies had reported 97.1 per cent rise in consolidated net profit at Rs 42.15 crore for quarter ended December 31, 2020. The IT firm’s income grew 14.6 per cent on-year to Rs 201 crore from Rs 176 crore in the corresponding quarter of the prior year. However, operating income in US dollar terms grew 8.8 per cent on-year.
Happiest Minds Technologies derives 87 per cent of its revenues from the US and Europe and no vertical contributed more than 21 per cent of its revenues as of FY20. Analysts in the initiate coverage report mentioned that Happiest Minds Technologies is anticipated to trade at a premium and will continue to develop at about 2x the pace of big-caps and about 1.5x of midcaps, led by the presence in digital. “We like the stickiness offered by PES and scalability offered by DBS/IMSS; and we factor in its ability to sustain earnings before interest and tax (EBIT) margins, similar to mid-caps (despite being 1/10th their size),” analysts mentioned.
Nomura in its report mentioned that Happiest Minds Technologies lacks domain experience barring pick places and is the crucial concentrate location of investment. “Inability to beef up domain capabilities could be a key risk to scaling accounts, in our view,” it added.