Happiest Minds IPO. Subscribe and hold for long term.

Happiest Minds IPO. Subscribe and hold for long term.

Stock is priced 30-35 times earning and 6-8 times book.

Looks little costlier on valuations, but with the phase the stock is growing, we are looking at stock doubling in less than 18-24 months.

Happiest Minds IPO. Subscribe and hold for long term.

Details:

Minimum Application for Retail ₹14,850 – ₹14,940

Price Band & Lot Size₹165 – ₹166 & 90 shares

Net Issue Size₹702cr

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Company Background:

Happiest Minds is an IT services company founded by Mr. Ashok Soota who was also one of the founding members of Mindtree Ltd. Happiest Mind is uniquely positioned as derived 96.6% of its revenues in FY2020 from digital services which is expected to be the fastest growing segment for the IT sector. The company’s offerings include digital business, product engineering, infrastructure management and security services among others. We believe that strong presence across digital technologies will help the company to grow at a faster rate as compared to the Industry.

Investment Rationale:

• Strong presence in digital technologies to drive growth for the company: In FY2020, 96.9% of company’s revenues came from digital services and is amongst the highest for any Indian IT company. The company offers solutions across the spectrum of various digital technologies such as Robotic Process Automation (RPA), Big Data and advanced analytics, Internet of Things (IoT), Cloud, Business Process Management (BPM) and security. A frost & Sullivan Report projects that digital spend is expected to grow at a CAGR of 20.2% from USD 69,100 crore in 2019 to 2,08,300 crore by 2025 and will account for 35% of total digital IT spend as compared to 14.3% in 2019.

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• Strong promoter background and client relationship also provides comfort: Happiest Mind Ltd. is founded by Mr. Ashok Soota who is also the Executive Chairman and Director of the company. Before founding Happiest Mind in 2011, Mr. Soota was one of the founding members of Mindtree Ltd. prior to which he was the vice chairman of Wipro Ltd. The company had 148 active customers as of Q1FY2021 with the share of repeat business growing consistently over the years indicating a high degree of customer stickiness.
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