Happiest Minds Q3 Results Review - Tepid; Management Maintains Guidance: Axis Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Axis Securities Report.In Q3 FY24, Happiest Minds Technologies Ltd. reported revenue of Rs 410 crore, up 0.8% QoQ and 11.7% YoY. This was below our expectations owing to ramp down of large client account. The company’s operating profit stood at Rs 1,05 crore, reporting a flattish growth of 0.4% on a QoQ basis. This was largely on account of lower overall demand in the majority of its operating regions. Its net profit for Q3 FY24 stood at Rs 60 crore, registering a growth of 2% QoQ. .Outlook From the long-term perspective, we believe Happiest Minds is well-placed to deliver encouraging growth, given its multiple long-term contracts with the world’s leading brands. Richer revenue visibility gives us confidence in its business growth moving forward. .Valuation and recommendation We recommend a 'Buy' rating on the stock and assign a 38 times price/earning multiple to its FY26E earnings of Rs 30/share to arrive at a target price of Rs 1,100/share, implying an upside of 25% from the current market price..Key risks to our estimates and target priceThe demand environment is uncertain on account of the potential threat of recession in the world’s largest economies.The rising subcontracting cost and cross-currency headwinds may impact the company’s operating margins negatively..Click on the attachment to read the full report:.Happiest Minds Q3 Results Review - Guided For 12% Organic Revenue Growth For FY24: Yes Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Happiest Minds Q3 Results Review - Tepid; Management Maintains Guidance: Axis Securities

The management has retained its guidance of 12% growth in constant currency terms in FY24 along with margin expansion.

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Happiest Minds Q3 Results Review - Tepid; Management Maintains Guidance: Axis Securities

The management has retained its guidance of 12% growth in constant currency terms in FY24 along with margin expansion.

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