In a few ideas for profit from Moneycontrol Pro, Madhuchanda Dey talks about a stock that she is tracking closely, Happiest Minds Technologies.
Happiest Minds Technologies had a stellar debut and had a great run thereafter. But in line with a selloff in global technology stocks, this optimally expensive technology stock has underperformed year-to-date. We see little risk to its earnings from the ongoing global macro challenges as we perceive the opportunity for IT service players to be more secular in nature.
We expect strong earnings traction for this company that derives close to 96 percent of its revenue from digital offerings.
Order wins have been very healthy and the pipeline looks strong. While talent shortage had impacted margin, the aggressive hiring should ensure that the challenge would abate in few quarters down the line.
Along with a strong business outlook, the weak currency, which is unlikely to reverse in a hurry given the global headwinds is an added tailwind for earnings.
The market correction provides an opportunity to look into this company from the medium-term perspective.