Happiest minds IPO 7th sep'20
Happiest minds IPO 7th sep'20

Happiest Minds IPO launch date is 7th sep’20 – 9th Sep’20. IPO price band is Rs165 to Rs166 per equity share. Having its headquater in Bangalore, Happiest minds IPO offers digital business services, product engineering services and infrastructure management and security services.

Happiest Minds IPO details

Overview

  1. About company
  2. Risk factor
  3. Revenue
  4. Where does business come from
  5. Conclusion

About Happiest Minds

Company has 2600 employees. 97% business of company is digital business. It had 157 active customers till June 2020.
Almost 48% revenue of company comes from Top 10 customers only.

Risk Factor

YearDEBT
201814 crore
20198.5 crore
20200
Company is not in debt currently
  • Company is in zero debt as of now. (Plus point)
  • 95% business comes from digital business. If other IT companies like TCS, Infosys get more involved in digital business then that can be a threat to growth. (Minus point)
  • Company has dependency on limited number of clients. As I already mentioned that 48% revenue comes from its top 10 clients.(Minus point)
  • Tremendous growth in Past 2 years. (Plus point)
  • Mr. Ashok Soota is highly experienced and had previously been the co-founder of mindTree, which has market capital of 20,000 crore. (Plus point)
  • Company is very flexible and open for any new challenges in the market. (Plus point)

Revenue

Company revenue has increased to 46% in 2 years. This shows that the future of this IT industry seems extremely good. Company has incurred a loss of 22.4 crore in the year 2018. It covered its losses in the year 2019 and 2020 by making profit of 14.2 crore and 71 crore respectively.

However, In the 1st quater of 2020-21, company made a profit of 50.1 crores. If we remove the tax, profit comes to 33 crores. Even during the pandemic of COVID-19, profits are touching heights.

Where does business come from ?

Majority clients of happiest minds comes from USA, follower by India, UK and others.

Conclusion

Investment for long term is not advisable as of now. We need to track the performance of the company on quaterly basis. Then and only then we can decide for long term investment. Company valuation seems to be a bit more than the industry valuation.

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