Happiest Minds shares slip despite IT stocks surge; here's what is weighing on the stock

Shares of Happiest Minds Technologies Ltd slipped on Friday, underperforming the broader IT sector, even as the Nifty IT sub-index surged. The stock was down 2.16 per cent at Rs 411.30 on BSE at the last check.

The decline came after a news report claimed: "Happiest Minds shares fall 6% as ITC Infotech likely to buy its promoter's stake". Following the report, stock exchanges BSE and NSE sought clarification from the mid-cap IT company.

In its response, Happiest Minds said, "We have taken note of the captioned news item and confirm that there is no information which requires disclosure under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”). As a general matter, the Company, as part of its business strategy, keeps exploring various strategic opportunities that are intended to be in the best interest of its stakeholders."

It added, "The Company has promptly intimated the stock exchanges regarding all events and disclosed all information, that have a bearing on the operations/performance of the Company, in accordance with Regulation 30 of the Listing Regulations as and when required and will continue to do so."

Happiest Minds further said, "If and when the Company becomes aware of any information/ event warranting a disclosure, the Company shall promptly comply with the disclosure obligations under the Listing Regulations."

Separately, Axis Securities, in a note last month, said Happiest Minds aims to deliver double-digit growth in constant currency for the year while maintaining EBITDA margins in the 20 per cent-22 per cent range, including other income.

"Amid global headwinds, the company aims for above-industry growth, with resilient demand across its key verticals and integration of AI," it stated.

Axis Securities maintained its 'Buy' rating on the stock with a target price of Rs 450.

Why are IT stocks rising today?

The broader IT segment was trading higher on Friday amid improved sentiment around global technology stocks following Nvidia's strong quarterly results and upbeat outlook.