HAPPSTMNDS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.9
| Stock Code | HAPPSTMNDS | Market Cap | 5,681 Cr. | Current Price | 373 ₹ | High / Low | 675 ₹ |
| Stock P/E | 28.2 | Book Value | 102 ₹ | Dividend Yield | 1.61 % | ROCE | 13.9 % |
| ROE | 12.3 % | Face Value | 2.00 ₹ | DMA 50 | 386 ₹ | DMA 200 | 471 ₹ |
| Chg in FII Hold | 0.05 % | Chg in DII Hold | -0.63 % | PAT Qtr | 25.4 Cr. | PAT Prev Qtr | 56.2 Cr. |
| RSI | 47.0 | MACD | -3.33 | Volume | 5,94,661 | Avg Vol 1Wk | 5,34,304 |
| Low price | 305 ₹ | High price | 675 ₹ | PEG Ratio | 564 | Debt to equity | 0.80 |
| 52w Index | 18.4 % | Qtr Profit Var | -26.1 % | EPS | 11.1 ₹ | Industry PE | 21.6 |
Positive
- Mid-cap market cap of ₹5,681 Cr. provides growth potential.
- Dividend yield of 1.61% offers modest income.
- Book value of ₹102 supports valuation floor.
- Slight increase in FII holdings (+0.05%) shows marginal foreign confidence.
- Stock trading above 50 DMA (₹386) and 200 DMA (₹471) in past cycles, though currently below, indicates potential recovery zones.
Limitation
- PEG ratio of 564 signals extreme overvaluation relative to growth.
- Debt-to-equity ratio of 0.80 highlights high leverage risk.
- ROE (12.3%) and ROCE (13.9%) are modest compared to industry leaders.
- Quarterly PAT dropped from ₹56.2 Cr. to ₹25.4 Cr. (-26.1%), showing earnings weakness.
- Current price (₹373) below 50 DMA (₹386) and 200 DMA (₹471), reflecting bearish sentiment.
- RSI at 47.0 and MACD (-3.33) indicate weak momentum.
Company Negative News
- Decline in DII holdings (-0.63%) signals reduced domestic institutional confidence.
- Profit contraction raises concerns about sustainability.
Company Positive News
- Dividend yield remains stable at 1.61%.
- Slight increase in FII stake (+0.05%) provides marginal support.
- EPS of ₹11.1 reflects profitability despite recent decline.
Industry
- IT services sector trading at industry P/E of 21.6, lower than HAPPSTMNDS’s P/E of 28.2.
- Sector faces margin pressures and global demand moderation.
- Competitive advantage lies in niche digital services, though scale remains limited compared to larger peers.
Conclusion
HAPPSTMNDS shows modest fundamentals with profitability and dividend yield, but faces valuation concerns, high debt, and declining earnings. Technical indicators suggest weak momentum.
Entry Zone: Safer accumulation range between ₹350–₹365 near support levels.
Long-Term Guidance: Risky for long-term holding due to stretched valuations and earnings decline. Better suited for cautious swing trades with strict stop-loss discipline.
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