Happiest Minds Technologies Ltd. (HAPPSTMNDS) AI Stock Analysis

• Market Cap: ₹58.28B
• Dividend Yield: 1.26%
• Average Volume (3M): 32.69K
• Price to Earnings (P/E): 42.9
• Beta (1Y): 0.38
• Revenue Growth: 21.31%
• EPS Growth: -16.27%
• Country: IN
• Employees: 4,884
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 3.70
• Shares Outstanding: 152,274,810
• 10 Day Avg. Volume: 50,509
• 30 Day Avg. Volume: 32,690
• PEG Ratio: -1.81
• Price to Book (P/B): 5.67
• Price to Sales (P/S): 4.33
• P/FCF Ratio: 39.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹520.00
• Price Target Upside: 11.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 19.88
• Revenue Forecast (FY): ₹26.42B

• Rating: 68 Neutral
• Price Target: ₹394.00 ▼(-15.45% Downside)
• Action: Reiterated Date: 03/21/26
• Date: Action: Reiterated 03/21/26

The score is primarily supported by strong financial fundamentals (revenue growth, profitability, and expanding cash flow), tempered by margin softening and increased leverage. Technicals are mixed, with short-term strength but a longer-term downtrend, and valuation is a meaningful headwind due to a high P/E and only modest yield.

Positive Factors

Multi-year revenue growth & profitability

Sustained multi-year revenue expansion and overall profitability indicate durable demand for the firm’s digital and managed services. This supports scalable delivery, reinvestment in skills and platforms, and increases the likelihood of steady contract renewals and long-term client relationships over the next 2–6 months and beyond.

Negative Factors

Declining EBIT / EBITDA margins

Compression in core operating margins weakens the company's ability to convert revenue growth into sustainable profits. If margin pressure reflects mix shifts or rising delivery costs, it can reduce free cash flow potential, limit reinvestment capacity, and make profitability more sensitive to pricing or volume changes over the medium term.

Happiest Minds Technologies Ltd. Business Overview & Revenue Model

Company Description

Happiest Minds Technologies Limited offers IT solutions and services in India, the United States, Canada, the United Kingdom, Australia, the Netherlands, Singapore, Malaysia, and the Middle East. It operates through three segments: Infrastructure ...

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Happiest Minds Technologies Limited offers IT solutions and services in India, the United States, Canada, the United Kingdom, Australia, the Netherlands, Singapore, Malaysia, and the Middle East. It operates through three segments: Infrastructure ...

How the Company Makes Money

Happiest Minds primarily makes money by providing IT services and digital transformation work to enterprise customers under commercial contracts. Key revenue streams include: (1) Digital services engagements (typically time-and-materials, fixed-pr...

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Happiest Minds primarily makes money by providing IT services and digital transformation work to enterprise customers under commercial contracts. Key revenue streams include: (1) Digital services engagements (typically time-and-materials, fixed-pr...

Happiest Minds Technologies Ltd. Financial Statement Overview

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	21.99B	20.61B	16.25B	14.29B	10.94B	7.73B
Gross Profit	6.11B	6.96B	3.66B	6.57B	5.10B	2.03B
EBITDA	4.59B	4.44B	4.33B	3.73B	2.87B	2.15B
Net Income	1.95B	1.85B	2.48B	2.31B	1.81B	1.62B
Balance Sheet
Total Assets	33.74B	33.59B	22.48B	16.41B	11.25B	9.22B
Cash, Cash Equivalents and Short-Term Investments	14.04B	6.66B	12.30B	5.32B	6.22B	5.07B
Total Debt	12.74B	12.44B	5.12B	5.34B	2.50B	1.93B
Total Liabilities	17.46B	17.84B	7.68B	8.02B	4.59B	3.76B
Stockholders Equity	16.28B	15.75B	14.80B	8.39B	6.66B	5.46B
Cash Flow
Free Cash Flow	1.22B	2.25B	2.04B	677.60M	1.64B	1.42B
Operating Cash Flow	1.23B	2.36B	2.13B	2.07B	1.68B	1.43B
Investing Cash Flow	669.50M	-7.62B	-4.66B	-3.51B	-960.80M	-2.84B
Financing Cash Flow	-1.75B	4.99B	3.63B	720.70M	-907.80M	1.70B

Happiest Minds Technologies Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 466.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HAPPSTMNDS, the sentiment is Negative. The current price of 466 is above the 20-day moving average (MA) of 385.48, above the 50-day MA of 385.46, and below the 200-day MA of 502.82, indicating a bearish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 47.63 is Neutral, neither overbought nor oversold. The STOCH value of 46.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:HAPPSTMNDS.

Happiest Minds Technologies Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SONATSOFTW	72 Outperform	₹68.89B	23.90	―	2.00%	12.39%	59.77%
MASTEK	70 Outperform	₹49.17B	14.66	―	1.62%	11.91%	-1.02%
HAPPSTMNDS	68 Neutral	₹58.28B	42.91	―	1.26%	21.31%	-16.27%
CIGNITITEC	66 Neutral	₹34.51B	14.03	―	―	13.58%	104.94%
BSOFT	62 Neutral	₹103.63B	25.31	―	1.42%	-2.00%	-25.81%
RSYSTEMS	62 Neutral	₹33.72B	25.72	―	3.06%	8.36%	36.68%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%