Happiest Minds Technologies Limited (NSE:HAPPSTMNDS) Just Reported First-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?
Investors in Happiest Minds Technologies Limited (NSE:HAPPSTMNDS) had a good week, as its shares rose 5.0% to close at ₹386 following the release of its quarterly results. It was a credible result overall, with revenues of ₹6.3b and statutory earnings per share of ₹14.11 both in line with analyst estimates, showing that Happiest Minds Technologies is executing in line with expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
After the latest results, the seven analysts covering Happiest Minds Technologies are now predicting revenues of ₹26.2b in 2027. If met, this would reflect a solid 9.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 31% to ₹19.43. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹26.3b and earnings per share (EPS) of ₹19.63 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
See our latest analysis for Happiest Minds Technologies
There were no changes to revenue or earnings estimates or the price target of ₹457, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Happiest Minds Technologies, with the most bullish analyst valuing it at ₹600 and the most bearish at ₹370 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Happiest Minds Technologies' revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 13% growth on an annualised basis. This is compared to a historical growth rate of 19% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.7% per year. Even after the forecast slowdown in growth, it seems obvious that Happiest Minds Technologies is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Happiest Minds Technologies analysts - going out to 2029, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 1 warning sign for Happiest Minds Technologies you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.