Choice Institutional Equities has issued a buy rating on Happiest Minds Technologies with a revised target price of ₹585, as reported by Moneycontrol. The brokerage's research report dated February 10, 2026, maintains a bullish outlook on the IT services company despite revising the target price down from the earlier ₹670. The recommendation reflects the company's continued transformation journey and strategic initiatives in the artificial intelligence sector.
According to the brokerage report, Happiest Minds continues its transformational journey with the launch of 'AI First' as its 11th strategic initiative. As reported by Moneycontrol, this AI-First initiative spans four key areas including advanced AI solutions, AI-native software development, ITSM, and cybersecurity. The company's platforms such as Arttha Banking, Insurance-in-a-Box, and the Multi-Omics Platform are expected to further scale subscription-led SaaS revenues, contributing to healthier growth and margin trajectory.
Choice Institutional Equities projects strong growth metrics for Happiest Minds, expecting Revenue/EBIT/PAT to grow at a CAGR of 14.5%/22.5%/25.0% over FY25–FY28E, as reported by Moneycontrol. The brokerage notes that the AI-First initiative, coupled with strong traction in the GenAI Business Services (GBS) unit which is up 50% QoQ with a robust net-new pipeline, augurs well for sustainable growth and profitability improvement. The target price of ₹585 is based on the FY27E–FY28E average EPS of ₹21.7.
The revised target price of ₹585 represents a reduction from the earlier ₹670 target, as reported by Moneycontrol. The brokerage has maintained its buy rating while factoring in the evolving macro environment for the IT sector. The recommendation reflects confidence in the company's strategic positioning in AI services and its ability to capitalize on the growing demand for artificial intelligence solutions in the enterprise market.
