Analyst Estimates: Here's What Brokers Think Of Happiest Minds Technologies Limited (NSE:HAPPSTMNDS) After Its Second-Quarter Report

Shareholders might have noticed that Happiest Minds Technologies Limited (NSE:HAPPSTMNDS) filed its second-quarter result this time last week. The early response was not positive, with shares down 4.5% to ₹736 in the past week. Results were roughly in line with estimates, with revenues of ₹5.2b and statutory earnings per share of ₹16.73. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Happiest Minds Technologies

Taking into account the latest results, the most recent consensus for Happiest Minds Technologies from seven analysts is for revenues of ₹21.1b in 2025. If met, it would imply a meaningful 16% increase on its revenue over the past 12 months. Per-share earnings are expected to swell 12% to ₹17.40. Before this earnings report, the analysts had been forecasting revenues of ₹21.1b and earnings per share (EPS) of ₹18.44 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

The consensus price target held steady at ₹816, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Happiest Minds Technologies analyst has a price target of ₹872 per share, while the most pessimistic values it at ₹750. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Happiest Minds Technologies' rate of growth is expected to accelerate meaningfully, with the forecast 34% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 20% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.3% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Happiest Minds Technologies is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Happiest Minds Technologies. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at ₹816, with the latest estimates not enough to have an impact on their price targets.

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 2027, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Happiest Minds Technologies .

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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.