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Happiest Minds has the happiest investors

Happiest Minds has the happiest investors

the market multibagger is backed by a solid business on the growth path
December 14, 2021
3 min read
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the market multibagger is backed by a solid business on the growth path

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after an exhilarating rally through most of 2021, Indian markets have stopped for a breather around mount 60k (in case of the Sensex) and appear conflicted on where to head from here. it’s a bug they’ve caught from the global markets which are all on alert over the potential disruption resulting from the Omicron variant of Covid-19. but even in this atmosphere, one stock has held up its happy umbrella and put on gains of 13% in the span of five trading sessions.

what has Happiest Minds swaying to its own melody?

top gear

holding that umbrella aloft is a stellar report card for Q2 FY22, wherein the IT consulting and services firm reported a 30.4% rise in net profit to Rs 44.4 crore and a 46% jump in income to Rs 246 crore, over the corresponding quarter last’s further buoyed by the fact that Happiest Minds has grown its annual profit 40x from Rs 4.11 crore in FY19 to Rs 161.93 crore in FY21. the company is growing at a breakneck pace.

even the pandemic failed to make a dent in its progress, just as the company has now declared that it expects little disruption to its business from the Omicron variant. but the minds in charge have certainly learnt from the structural failures of some other sectors due to the pandemic. they are looking to diversify their business geographically, aiming to reduce the share of US-based clients to below 65% for greater sustainability. the strategy will likely involve expansion in the Western European market, as well as Australia and the Middle East.

market favourite

at the same time, Happiest Minds has managed to keep its retail investors happy by outperforming on the bourses. since the beginning of 2021, its share prices have nearly quadrupled, with a good proportion of retail investors placing their faith in its promise. an evenly balanced approach from the leadership, between developing its services business with fresh hires and IPs which can be embedded into those services is likely to help the company sustain its favour with investors.

Happiest Minds offers a rare mix of a sound business and market-following. if it’s business continues to deliver, that heady combination could earn it an increasingly wider investor base.