125% Dividends Paid: Prabhudas Lilladher Recommends 'Accumulate' In Happiest Minds For TP Of Rs 960

Midcap stock, Happiest Minds Technologies is recommended to 'Accumulate' by brokerage Prabhudas Lilladher for a target price of Rs 960. The brokerage has added the stock as its medium term tech pick last week. Happiest Minds has witnessed huge pullback in year-to-date performance, and this gives the opportunity to buy on dips as RSI has picked up. Happiest Minds earlier this month paid a hefty dividend of 125%.

In the trading week that ended on November 17th, Happiest Minds share price gained by nearly 2%. Last week, on Friday, the stock however ended at Rs 848 apiece, down by 0.6% on BSE with market cap of Rs 12,912.90 crore.

Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher said, "The stock after a short correction has bottomed out taking support near the 800 zone and indicated a pullback to improve the bias and currently with a move past the significant 50EMA level of 857 has strengthened the trend to anticipate for further rise."

Further, she added, "The RSI has picked up well from the oversold zone and currently is well placed indicating strength and has further much upside potential from current levels."

Accordingly, she concludd, "With the chart looking good, we suggest to buy and accumulate the stock for an upside target of 960 keeping the stop loss of 830."

From the current price level and PL's TP, Happiest Minds is expected to rise over 13% on the exchange ahead.

Last month, on October 30th, Happiest Minds turned ex-dividend for an interim dividend of Rs 2.50 per equity share of face value ₹ 2/- for the financial year 2023-24. In percentage terms, the payout was to the tune of 125%. The company has paid the dividend on and after November 13, 2023.

In Q2FY24, the company's net profit in the quarter under review came in at Rs 58.46 crore, down by 1.6% YoY and also broadly flat sequentially. However, revenue from operations stood at Rs 406.62 crore, up by 14.4% YoY and 4% QoQ. Notably, the company's EBITDA came in at Rs 104.82 crore, up by 11.1% YoY and 1.8% QoQ in the quarter.

Just like every other IT firm, Happiest Minds has decided to tap growth in artificial intelligence (AI). The company is establishing a business unit called Generative AI Business Services (GBS). The new unit will offer full-scale Generative AI offerings across multiple domains.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.