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45x earnings, 20 quarters of growth: Can Happiest Minds keep delivering?
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The Indian Express
At nearly 45 times earnings, Happiest Minds Technologies does not trade like a typical Indian IT services stock.
Source: Screener.in Figure 1: Stock Price Movement of Happiest Minds Technologies Ltd.
From an industry vertical perspective, Happiest Minds is well diversified across BFSI, EdTech, Healthcare, and Hi-Tech/Media.
Yet, the stock’s 45x earnings multiple tells investors that the market already expects Happiest Minds to keep compounding earnings at 18-20% every year, with margins intact.
If Happiest Minds continues to deliver on its promises quarter after quarter, the premium may look well deserved in hindsight.