Why ULIP mis-selling has become rampant ?

Investors, who were allotted Happiest Minds Technologies shares last year, must be among the happiest lot. Shares of the company have rallied 318% to their all-time high Rs 694.85 on April 8 over the issue price of Rs 166. The scrip got listed at Rs 351 on September 17 last year.

Happiest Minds Technologies is a digital transformation, infrastructure, security, and product engineering services company. It was founded by Ashok Soota in 2011. It is headquartered in Bangalore, India and has operations in the US, UK, Canada, Singapore, and Australia. Happiest Minds Technologies provides services through technologies such as the internet of things, cloud, unified communications, big data analytics, robotic process automation, mobility and security.

Analyst sees further upside in the stock. Progressive Share Brokers is positive on the company with a 3-6 months target price of Rs 740. On the other hand, Rajnath Yadav, Research Analyst, Choice Broking, who sees Sensex in the range of Rs 52,000-55,000 in FY22, believes that Happiest Minds Technologies may give a handsome return in the ongoing financial year. The BSE Sensex traded 13 points, or 0.03%, up at 49759 in the morning trade on April 9.

The IT firm had reported 97.1% growth in consolidated net profit at Rs 42.15 crore for December quarter 2020-21. It had posted a net profit of Rs 21.38 crore in the year-ago period. Total income was at Rs 201.29 crore in the quarter grew 14.6% from Rs 175.57 crore in the year-ago period.

On a sequential basis, net profit grew 23.7% from Rs 34.08 crore, while revenue was higher by 7.1% from Rs 187.91 crore in September quarter 2020-21. In an earlier report in February, Japanese brokerage firm Nomura said, “We like Happiest Minds as we see it as a ‘consistent compounder. We expect Happiest Minds to trade at a premium as we think it will continue to grow at over 2 times the pace of largecaps and over 1.5 times of midcaps, led by the presence in digital.”