Happiest Minds Technologies Ltd. (HAPPSTMNDS) AI Stock Analysis

• Market Cap: ₹77.16B
• Dividend Yield: 1.24%
• Average Volume (3M): 32.69K
• Price to Earnings (P/E): 38.9
• Beta (1Y): 0.77
• Revenue Growth: 21.31%
• EPS Growth: -16.27%
• Country: IN
• Employees: 4,884
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 3.55
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ₹531.00 ▲(5.13% Upside)

Happiest Minds Technologies Ltd. has a strong financial foundation with solid revenue growth and profitability, which is the most significant factor in its score. However, the technical analysis indicates bearish momentum, and the stock appears overvalued based on its P/E ratio. These factors contribute to a moderate overall stock score.

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 Management & Security Services (IMSS); Digital Business Solutions (DBS); and Product Engineering Services (PES). The IMSS segment provides security services, including cyber and infrastructure security, governance, risk and compliance, data privacy and security, identity and access management, and threat and vulnerability management; infrastructure services comprises of DC and hybrid cloud services, workspace services, service automation, database and middleware services, and software defined infrastructure services; and advisory, transformation, managed and hosted services, and secure intelligence solutions. The DBS segment offers enterprise applications and customized solutions, comprising of advisory, design and architecture, custom-app development, package implementation, and testing and on-going support services to IT initiatives. The PES segment assists software product companies in building products and services that integrates mobile, cloud, and social technologies. The company also provides Internet of Things (IoT) solutions, consisting of digital strategy creation consultation, end-to-end system integration on IoT platforms, IoT security and managed services, implementation of IoT roadmap, and derivation of insights. In addition, it offers analytics/artificial intelligence solutions, including implementation of advanced analytics using artificial intelligence, machine learning and statistical models, and engineering big data platforms; and digital process automation solutions, such as robotic process automation, intelligent business process management, and cognitive automation using AI and machine learning based models. The company was incorporated in 2011 and is headquartered in Bengaluru, India.

How the Company Makes Money

Happiest Minds generates revenue primarily through its IT services and solutions, which include consulting, software development, and managed services. The company's revenue model is largely project-based, with clients from various industries engaging in long-term contracts for technology services. Key revenue streams include digital transformation services, cloud solutions, and analytics services. Additionally, the company benefits from strategic partnerships with leading technology providers and platforms, enabling it to expand its service offerings and enhance its market presence. These partnerships, combined with a growing demand for digital solutions, contribute significantly to its earnings.

Happiest Minds Technologies Ltd. Financial Statement Overview

Summary

Happiest Minds Technologies Ltd. showcases solid financial performance with strong revenue growth and profitability. The balance sheet reflects a stable financial position, although increased leverage requires attention. Overall, the company is in a good position to capitalize on future opportunities but should manage its debt levels carefully.

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	21.47B	20.61B	16.25B	14.29B	10.94B	7.73B
Gross Profit	7.06B	6.96B	3.66B	6.57B	5.10B	2.03B
EBITDA	4.57B	4.44B	4.33B	3.73B	2.87B	2.15B
Net Income	1.91B	1.85B	2.48B	2.31B	1.81B	1.62B
Balance Sheet
Total Assets	33.36B	33.59B	22.48B	16.41B	11.25B	9.22B
Cash, Cash Equivalents and Short-Term Investments	16.06B	6.66B	12.30B	5.32B	6.22B	5.07B
Total Debt	3.84B	12.44B	5.12B	5.34B	2.50B	1.93B
Total Liabilities	17.01B	17.84B	7.68B	8.02B	4.59B	3.76B
Stockholders Equity	16.34B	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: 505.10
• 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 505.1 is below the 20-day moving average (MA) of 506.03, below the 50-day MA of 526.45, and below the 200-day MA of 596.70, indicating a bearish trend. The MACD of -5.27 indicates Negative momentum. The RSI at 44.67 is Neutral, neither overbought nor oversold. The STOCH value of 45.49 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
CIGNITITEC	75 Outperform	₹48.58B	16.81	―	―	13.58%	104.94%
RSYSTEMS	73 Outperform	₹48.66B	25.77	―	3.04%	8.36%	36.68%
BSOFT	72 Outperform	₹103.34B	21.74	―	1.67%	-2.00%	-25.81%
SONATSOFTW	69 Neutral	₹104.81B	24.22	―	0.32%	16.11%	45.45%
MASTEK	65 Neutral	₹66.26B	18.10	―	1.56%	11.91%	-1.02%
HAPPSTMNDS	62 Neutral	₹77.16B	38.94	―	1.24%	21.31%	-16.27%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Happiest Minds Technologies Ltd. Corporate Events

Happiest Minds Re-appoints CEO for Continued Leadership

Happiest Minds Technologies Ltd. has announced the re-appointment of Mr. Joseph Vinod Kumar Anantharaju as a Whole-time Director, designated as Co-Chairman & CEO, for another five years starting from November 2025. This move, pending approval from the Central Government, underscores the company’s commitment to stable leadership, potentially impacting its strategic direction and stakeholder confidence positively.

Happiest Minds Technologies Celebrates Triple Win at Brandon Hall Awards 2025

Happiest Minds Technologies Limited has been recognized with three awards at the Brandon Hall Group Awards for Excellence in Learning and Development, highlighting their commitment to employee growth and skill development. The awards, which include a Gold for their Architecting for Change Program and two Bronzes for their S.H.I.F.T. and LEAD programs, underscore the company’s strategic focus on resilience, adaptability, and leadership in a rapidly changing business and technology environment.

Happiest Minds Announces Newspaper Publication on Scheme of Arrangement

Happiest Minds Technologies Limited announced the publication of a newspaper advertisement regarding the dispensation of meetings related to the Composite Scheme of Arrangement with PureSoftware Technologies Private Limited. This development follows an order from the National Company Law Tribunal, Bengaluru Bench, and is part of the company’s compliance with regulatory requirements, potentially impacting its corporate structure and stakeholder relations.

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.