This Midcap IT Stock Could Rally 36% Feels Top Brokerage House

KR Choksey has recommended buying the stock of Happiest Minds Technologies Ltd for a potential upside of nearly 36% on the stock in its latest InvestPro report.

Good revenue increase

According to KR Choksey, Good traction in revenue was seen and the management expects growth momentum to continue in the upcoming quarter.

"The management believes that this positive momentum would continue to grow in the upcoming quarter due to (i) a high client retention ratio, (ii) a lower attrition ratio, (iii) a steady utilization rate, (iv) cracking new deals and (v) continuous investments in facility addition across India, especially in Bangalore, Noida & Bhuvneshwar. The management would be able to meet the target of 25% in revenue growth for FY23," the brokerage has said in its latest report on the company.

Acquiring SMI

KR Choksey believes that acquiring SMI would be considered to have a strong presence in the healthcare vertical and product engineering service. "Happiest Minds Technologies has recently announced that it has acquired 100% equity in a Maduraibased entity named Sri Mookambika Infosolutions Ltd. (SMI) through a combination of upfront and deferred equity consideration totaling INR 111 crores. The company provides product engineering services and various solutions in the healthcare segment to its US customers. The annual revenue run rate is USD 9 million with 400+ offshore-based employees. Happiest Minds Technologies believes that together there will be a strong force to meet existing and future customer demands with no margin dilution," the brokerage has said.

Disclaimer

The above article is for information purposes only. The stock is picked from the brokerage report of KR Choksey. Neither the brokerage, nor the author nor Greynium Information Technologies Pvt Ltd should be held responsible for losses based on a decision after reading the article.