Happiest Minds would be the next IT Giant ? Complete Analysis

Happiest Minds would be the next IT Giant | Digital transformation will help the stock to become giant.

Today all the companies adopting digital technology into their business irrespective of the size and shape of the businesses and industries. After the major pandemic Covid impact the all businesses are realised the need and importance of digital technology. digital technology will help them to reach more customers and most importantly appropriate customers to whom the products suits, it can improves the conversion ratio. so to do all these things companies must digitise their business style. here the company comes Happiest Minds Technologies Ltd will do all these things with their all new disruptive technologies like IoT, AI & ML and Virtual augmented reality. this company is offering lot of digital technologies to the companies to make their business digitalized. here we discuss all the parameters about Happiest Minds Technologies Ltd. which has the potential to grow lot.

About Company :

Happiest Minds Technologies Ltd, founded in 2011, by the founder of Mindtree, who has the 60+ years excellence in IT, that was head quarterd ing Bangalore. this company provides IT services and this company is workig on the disruptive technologies such as Internet of Things (IoT), Artificial Intelligence, Block Chain, Cloud, Digita Process automtion, Robotics, Security, Drones, Virtual augmented reality etc. This company has delivering these digital solutions across the industries such as automobile, BFSI, consumer packaged products, ecommerce, edutech, enginering, R & D, hi – tech, manufacturing, retail, travel, transportation and hospitality.Also this company has the strong presence across the world that includes major business contributors like US, UK, Canada, Australia and MIddle east.

 

Key Growth Drivers : 

As every business is transforming to the digital, this digital transformation will be the biggest opportunity for the company. as company started with the aim of digitalisation and now it is coming possible and due to Covid it was started earlier and everyone realised the importance of digitalisation, across the industry we can see the transformation for example education transformed into Edutech, banking and finance transformed into Fintech, retail transformed into E – commerce and coming many more. also with the advent cloud, AI & ML, and IoT it was more effective and making every business to reach more heights. by adopting all these technologies and developing solutions based on these disruptive technologies will definitely keep this company ahead in the future.

Partnerships/Alliances of the company :

Happiest Minds has strong alliances with tech giants in the world such as Microsoft, Google, Amazon web services, Salesforce and many more. those keeps the company to adobt latest technologies and to build more efficient products that can improve the profitability of the company.

Financials :

 

Happiest Minds has the market cap of Rs. 20637 cr. and is the almost debt free company. happiest minds is generating positive cash flows from it’s operations. if you look at the return ratios of the company the ROE is 49.4%, ROCE is 27.9% and Net profit margin is 21.3%. if you look at the share holding pattern of the company the promoters are holding 53.2%, FIIs are holding 6.23%, DIIs are holding 4.02% and public is holding 37.55%. company is having better return ratios over the last three years, that’s good for the company. reveues of the company are continuously growing, which is also a good sign for the company. if you look at the revenue break up of the company, company generating 41% of revenue from digital and cloud solutions, 21.6% of revenues from security solutions, 8.7% of revenues from IoT solutions, 14.4% from SAAS, 11% from AI analytics and 3.4% from others. if you look at the geographical break up this company is generating 72.2% of revenues from US. This Stock is currently trading around ₹1400. This stock has been already delivered 300% returns since it’s IPO debute.

 

Key Risks : 

This company also having certain risks such as Technology adoption. as this company is working on all new technology company has to be focused all new changes else others will disrupt. also there is competition risk as the big IT giants started offering the digital solutions company has to be focus on their market share.

Conclusion :

As we are looking for long term this company would generate multiple returns in the coming future as this company growth has just been started, still there is lot of potential to grow as they are offering digital solutions and this company working on AI, IoT and cyber security which are the key growth products that are going to change the world. so we can add this stock in our portfolio, we’ll get benefited from another disruptive technology AI. we can accumulate this stock in evey 10 – 15% dip.