Happiest Minds Technologies Limited
Happiest Minds Technologies Limited Fundamental Analysis
Happiest Minds Technologies Limited (HAPPSTMNDS.NS) shows moderate financial fundamentals with a PE ratio of 30.84, profit margin of 8.22%, and ROE of 11.46%. The company generates $22.6B in annual revenue with strong year-over-year growth of 26.85%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 75.6/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze HAPPSTMNDS.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakHAPPSTMNDS.NS struggles to generate sufficient returns from assets.
Valuation Score
ModerateHAPPSTMNDS.NS shows balanced valuation metrics.
Growth Score
ModerateHAPPSTMNDS.NS shows steady but slowing expansion.
Financial Health Score
ExcellentHAPPSTMNDS.NS maintains a strong and stable balance sheet.
Profitability Score
WeakHAPPSTMNDS.NS struggles to sustain strong margins.
Key Financial Metrics
Is HAPPSTMNDS.NS Expensive or Cheap?
P/E Ratio
HAPPSTMNDS.NS trades at 30.84 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, HAPPSTMNDS.NS's PEG of -6.16 indicates potential undervaluation.
Price to Book
The market values Happiest Minds Technologies Limited at 3.50 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 15.60 times EBITDA. This signals the market has high growth expectations.
How Well Does HAPPSTMNDS.NS Make Money?
Net Profit Margin
For every $100 in sales, Happiest Minds Technologies Limited keeps $8.22 as profit after all expenses.
Operating Margin
Core operations generate 13.06 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.46 in profit for every $100 of shareholder equity.
ROA
Happiest Minds Technologies Limited generates $5.40 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Happiest Minds Technologies Limited generates limited operating cash flow of $1.23B, signaling weaker underlying cash strength.
Free Cash Flow
Happiest Minds Technologies Limited produces free cash flow of $1.22B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $8.12 in free cash annually.
FCF Yield
HAPPSTMNDS.NS converts 2.13% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
30.84
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-6.16
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.50
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.54
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.28
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.73
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How HAPPSTMNDS.NS Stacks Against Its Sector Peers
| Metric | HAPPSTMNDS.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 30.84 | 34.49 | Better (Cheaper) |
| ROE | 11.46% | 1124.00% | Weak |
| Net Margin | 8.22% | -133673.00% (disorted) | Weak |
| Debt/Equity | 0.28 | 7.86 | Strong (Low Leverage) |
| Current Ratio | 1.73 | 5.81 | Neutral |
| ROA | 5.40% | -308769.00% (disorted) | Weak |
HAPPSTMNDS.NS outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Happiest Minds Technologies Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
162.17%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
128.73%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
87.13%
Industry Style: Growth, Innovation, High Beta
High Growth