Happiest Minds Technologies Ltd. (HAPPSTMNDS) AI Stock Analysis

• Market Cap: ₹81.67B
• Dividend Yield: 1.12%
• Average Volume (3M): 28.05K
• Price to Earnings (P/E): 42.2
• Beta (1Y): 0.79
• Revenue Growth: 26.47%
• EPS Growth: -21.31%
• Country: IN
• Employees: 4,884
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 4.55
• Shares Outstanding: 152,274,810
• 10 Day Avg. Volume: 27,033
• 30 Day Avg. Volume: 28,052
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹656.00
• Price Target Upside: 23.63% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: ₹656.00 ▲(23.63% Upside)

Happiest Minds Technologies Ltd. shows strong financial performance with solid revenue growth and profitability as the most significant strength. However, technical analysis reveals potential bearish momentum, and valuation indicators suggest the stock might be overvalued. These factors collectively result in a moderate overall score.

Happiest Minds Technologies Ltd. Business Overview & Revenue Model

Company Description

Happiest Minds Technologies Ltd. is a next-generation digital transformation, infrastructure, and security services company headquartered in Bangalore, India. The company operates across various industry sectors such as healthcare, banking, retail, and industrial, providing comprehensive IT solutions to enhance operational efficiency and digital experiences. Its core services include digital business services, product engineering services, and infrastructure management and security services, which leverage emerging technologies like artificial intelligence, cloud computing, and the Internet of Things.

How the Company Makes Money

Happiest Minds Technologies Ltd. generates revenue through a diversified portfolio of IT service offerings. Its primary revenue streams include digital business services, which focus on helping businesses optimize their digital operations and customer interactions, and product engineering services, which involve designing and developing software products. Additionally, infrastructure management and security services provide clients with secure and efficient IT infrastructure solutions. The company earns through project-based contracts, long-term managed services agreements, and consulting engagements. Strategic partnerships with technology providers and clients across various industries further bolster its revenue by enabling the delivery of tailored, cutting-edge solutions.

Happiest Minds Technologies Ltd. Financial Statement Overview

Summary

Happiest Minds Technologies Ltd. demonstrates strong financial performance with solid revenue growth and robust profitability. The balance sheet shows financial stability, although increased leverage in 2025 requires careful management. The company also has good cash generation capability, but should focus on improving cash conversion from income.

Income Statement

Happiest Minds Technologies Ltd. demonstrates strong revenue growth, with a consistent increase from 2020 to 2025. The gross profit margin has been robust, averaging above 30%, and the net profit margin shows solid profitability. However, there was a decrease in EBIT and EBITDA margins in the latest year, which could point to increased operational costs.

Balance Sheet

The company's balance sheet shows strong equity growth, with a healthy equity ratio indicating financial stability. The debt-to-equity ratio increased in 2025, suggesting higher leverage that might pose risks if not managed properly. The return on equity remains strong, reflecting efficient use of shareholders' capital.

Cash Flow

Operating cash flow has consistently grown, supporting ongoing business operations. Free cash flow has increased, indicating good cash generation capability. However, the operating cash flow to net income ratio suggests a need for better conversion of income into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	20.61B	20.61B	16.25B	14.29B	10.94B	7.73B
Gross Profit	6.96B	6.96B	6.01B	6.57B	5.10B	3.49B
EBITDA	4.44B	4.44B	4.33B	3.73B	2.87B	2.15B
Net Income	1.85B	1.85B	2.48B	2.31B	1.81B	1.62B
Balance Sheet
Total Assets	33.59B	33.59B	22.48B	16.41B	11.25B	9.22B
Cash, Cash Equivalents and Short-Term Investments	14.09B	14.09B	12.30B	5.32B	6.22B	5.07B
Total Debt	12.44B	12.44B	5.12B	5.34B	2.50B	1.93B
Total Liabilities	17.84B	17.84B	7.68B	8.02B	4.59B	3.76B
Stockholders Equity	15.75B	15.75B	14.80B	8.39B	6.66B	5.46B
Cash Flow
Free Cash Flow	0.00	2.25B	2.04B	677.60M	1.64B	1.42B
Operating Cash Flow	0.00	2.36B	2.13B	2.07B	1.68B	1.43B
Investing Cash Flow	0.00	-7.62B	-4.66B	-3.51B	-960.80M	-2.84B
Financing Cash Flow	0.00	4.99B	3.63B	720.70M	-907.80M	1.70B

Happiest Minds Technologies Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 530.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 530.6 is below the 20-day moving average (MA) of 564.59, below the 50-day MA of 583.58, and below the 200-day MA of 632.84, indicating a bearish trend. The MACD of -11.09 indicates Positive momentum. The RSI at 25.35 is Positive, neither overbought nor oversold. The STOCH value of 5.23 is Positive, 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
CIGNITITEC	78 Outperform	₹40.12B	15.64	20.78%	―	12.80%	93.84%
MASTEK	70 Outperform	₹67.11B	16.88	15.27%	1.62%	13.04%	30.69%
SONATSOFTW	70 Outperform	₹100.25B	23.17	24.89%	0.35%	16.11%	45.45%
HAPPSTMNDS	66 Neutral	₹81.67B	42.16	―	1.12%	26.47%	-21.31%
BSOFT	66 Neutral	₹100.60B	21.16	14.86%	1.80%	-0.19%	-25.97%
RSYSTEMS	64 Neutral	₹49.33B	25.52	21.02%	3.00%	4.36%	35.84%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Happiest Minds Technologies Ltd. Corporate Events

Happiest Minds Seeks Shareholder Approval for Leadership Re-appointments

Happiest Minds Technologies Ltd. has announced a postal ballot seeking shareholder approval for the re-appointment of Mr. Joseph Vinod Kumar Anantharaju as Co-Chairman & CEO and Mr. Venkatraman Narayanan as Managing Director. This move is part of the company’s strategic leadership continuity plan, which could impact its operational stability and stakeholder confidence. The e-voting process will be conducted from August 6 to September 4, 2025, with results to be announced shortly after.