Happiest Minds Technologies share price surged over 15 per cent to hit a new 52-week of Rs 538 apiece on Thursday after the brokerage research firm Nomura initiated coverage with a 'buy' rating to the stock.
The stock of the Ashok Soota-founded information technology company gained another 15.6 per cent intra-day in today's session to a new 52-week high of Rs 559 and traded in a wide range of Rs 74.3.
The stock not only breached the 12-month price target of Rs 480 apiece set by the Nomura on Wednesday but also rose as much as 20 per cent and later settled 19.82 per cent higher at a record high of Rs 483.55. M-cap of the IT consulting and software firm stood at Rs 7,650.86 crore today.
Happiest Minds is trading higher than 5, 20, 50, 100 and 200-day moving averages. Its stock price has risen 40 per cent in one week, 41 per cent in one month, and 50 per cent since the beginning of the year.
This was after Nomura Financial Advisory and Securities (India) Pvt Ltd issued a buy recommendation on Happiest Minds Technologies Ltd earlier this week. On better growth prospects, the brokerage set a 12-month price target of Rs 480 for the stock.
The brokerage said profits of Happiest Minds in the past two quarters have been way ahead of expectations and expects the IT firm to report revenue growth of 25 per cent during 2021-2024.
The IT company's shares have risen 224 per cent, or three times, from its IPO price. Less than six months ago, the IT consulting and software company made its listing debut at a price of Rs 351 as against its issue price of Rs 166.
Nomura in its report said," We like the stickiness offered by PES and scalability offered by DBS/IMSS; and we factor in its ability to sustain earnings before interest and tax (EBIT) margins, similar to mid-caps (despite being 1/10th their size). Inability to beef up domain capabilities could be a key risk to scaling accounts, in our view."