Check Before You Invest : Happiest Minds Technologies Ltd

Q: Which industry/sub-sector does Happiest Minds Technologies Ltd belong to?

Happiest Minds Technologies Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q: Is Happiest Minds Technologies Ltd a good quality company?

Happiest Minds Technologies Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Happiest Minds Technologies Ltd undervalued or overvalued?

Happiest Minds Technologies Ltd appears Undervalued, as its key valuation ratios are lower than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 30.51, Historic Median: 55.06. Price to Book, Current: 3.39, Historic Median: 8.02. Price to Sales, Current: 2.51, Historic Median: 7.26. EV to EBITDA, Current: 12.41, Historic Median: 26.49

Q: Is Happiest Minds Technologies Ltd a good buy now?

Happiest Minds Technologies Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Happiest Minds Technologies Ltd?

Happiest Minds Technologies Ltd revenue growth is 26.9% for FY-2025, which is above its 5-year CAGR of 24.17%, indicating faster growth.

Q: Gross Profit margin of Happiest Minds Technologies Ltd?

Happiest Minds Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 17.3% for FY-2025, which is below its 5-year median of 25.1%, indicating decreasing margins.

Q: Operating Profit Margin of Happiest Minds Technologies Ltd?

Happiest Minds Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.2% for FY-2025, which is below its 5-year median of 23.56% indicating decreasing margins.

Q: Net Profit Margin of Happiest Minds Technologies Ltd?

Happiest Minds Technologies Ltd Net Profit Margin is 8.96% for FY-2025, is below its 5-year median of 16.16%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 17.3, Historic Median: 25.1. Operating Profit Margin (%), Current: 17.2, Historic Median: 23.56. Net Profit Margin (%), Current: 8.96, Historic Median: 16.16

Q: Return on Asset of Happiest Minds Technologies Ltd?

Happiest Minds Technologies Ltd Return on Asset is 6.65%, which is below its 5-year historical median of 16.82%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Happiest Minds Technologies Ltd?

Happiest Minds Technologies Ltd Return on capital employed is 15.24% for FY-2025, which is below its 5-year historical median of 30.67%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Check Before You Invest : Happiest Minds Technologies Ltd

Snapshot

Q.1 Which industry/sub-sector does Happiest Minds Technologies Ltd belong to?

Happiest Minds Technologies Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q.2 Is Happiest Minds Technologies Ltd a good quality company?

Happiest Minds Technologies Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Happiest Minds Technologies Ltd undervalued or overvalued?

Happiest Minds Technologies Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	30.51	55.06
Price to Book	3.39	8.02
Price to Sales	2.51	7.26
EV to EBITDA	12.41	26.49

Q.4 Is Happiest Minds Technologies Ltd a good buy now?

Happiest Minds Technologies Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Happiest Minds Technologies Ltd?

Happiest Minds Technologies Ltd revenue growth is 26.9% for FY-2025, which is above its 5-year CAGR of 24.17%, indicating faster growth.

Q.2 Gross Profit margin of Happiest Minds Technologies Ltd?

Happiest Minds Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 17.3% for FY-2025, which is below its 5-year median of 25.1%, indicating decreasing margins.

Q.3 Operating Profit Margin of Happiest Minds Technologies Ltd?

Happiest Minds Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.2% for FY-2025, which is below its 5-year median of 23.56% indicating decreasing margins.

Q.4 Net Profit Margin of Happiest Minds Technologies Ltd?

Happiest Minds Technologies Ltd Net Profit Margin is 8.96% for FY-2025, is below its 5-year median of 16.16%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	17.3	25.1
Operating Profit Margin (%)	17.2	23.56
Net Profit Margin (%)	8.96	16.16

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Happiest Minds Technologies Ltd?

Happiest Minds Technologies Ltd Return on Asset is 6.65%, which is below its 5-year historical median of 16.82%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Happiest Minds Technologies Ltd?

Happiest Minds Technologies Ltd Return on capital employed is 15.24% for FY-2025, which is below its 5-year historical median of 30.67%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of Happiest Minds Technologies Ltd?

Happiest Minds Technologies Ltd Return on equity is 12.1% for FY-2025, which is below its 5-year historical median of 30.09%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Happiest Minds Technologies Ltd?

Happiest Minds Technologies Ltd Cash conversion cycle is 32 days, above its 5-year historical median of 26 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.74	1.04
ROE (%)	12.1	30.09
ROCE (%)	15.24	30.67
Cash Conversion Cycle	32 days	26 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Happiest Minds Technologies Ltd?

Happiest Minds Technologies Ltd Debt-to-Equity ratio is 0.74, which is above the industry average of 0.01, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Happiest Minds Technologies Ltd?

Happiest Minds Technologies Ltd Debt to cash flow from operations is 4.91, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Happiest Minds Technologies Ltd?

Q.1 Promoter shareholding and pledge status of Happiest Minds Technologies Ltd?

Promoters hold 44.21% of the Happiest Minds Technologies Ltd, with 1.76% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Happiest Minds Technologies Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Happiest Minds Technologies Ltd vs industry peers?

Happiest Minds Technologies Ltd revenue CAGR is 24.17%, compared to the industry median CAGR of 2.48%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	26.9	2.5
Gross Profit Growth (%)	-6.1	18.3
Operating Profit Growth (%)	4.5	18
Net Profit Growth (%)	-25.4	22

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.74	0.46
ROE (%)	12.1	3.97
ROCE (%)	15.24	6.41
Cash Conversion Cycle (days)	31.76	36

Valuation & price assessment

Q.1 Stock return of Happiest Minds Technologies Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of -13.39% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-13.4%	-25.7%	-38.9%

Q.2 Valuation ratios of Happiest Minds Technologies Ltd vs historical?

The current P/E ratio of 30.51 is lower than its historical median of 55.06, indicating that the stock is trading below its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	30.51	55.06	47.38
Price to Book	3.39	8.02	2.64
Price to Sales	2.51	7.26	4.79
EV to EBITDA	12.41	26.49	16.75

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Check Before You Invest : Happiest Minds Technologies Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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