In the long term, technology spending will go up but for now enterprises may tighten purse strings putting strain on Happiest Mind’s valuation
PRO Only Highlights
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
Highlights – FY23 starts on a high note – Strong traction in revenue, no signs of stress yet except for a blip in Hitech vertical – Revises full-year guidance upwards, eyeing $ 1 billion revenue by 2031 – Margin resilient amid attrition, wage revision in Q2 – Macro concerns could impact demand although supply pressure easing – Defending premium valuation a challenge, peers have corrected more – Add on decline Happiest Minds Technologies (CMP: Rs 1001.9, Market Cap: Rs 14,714 crore) has been one of the relative winners…
