Happiest Minds earns the majority of its revenues from the digital businesses which include the Internet of Things (IoT), Analytics/Artificial Intelligence (AI), and Digital Process Automation (DPA). Whereas traditional Indian IT services companies such as Infosys (NS:) and Tata Consultancy Services Ltd. (NS:) generates 35% to 50% of their revenues from digital technologies, Happiest Minds has this ratio at 97%. The company is bound to maintain its fast growth as Digital technologies such as cloud and analytics are growing at a rapid pace.
While the stock is valued at a diluted PE ratio of 29 for FY20, it is comparable to large IT companies. This shows that the listing gains of around Rs. 100 per share should be possible for Happiest Minds unless the volatility in the broader markets grows. suffered from a decline of more than 1% on Friday after the US markets crash on Thursday. This is the only risk I see, which could cut down on the listing gains for Happiest Minds.