Hey, This is good diversified and large cap dominant portfolio, looks very similar to NIFTY 50, so a good exercise might be here to do here is see how much you overlap with NIFTY 50 index (stocks and weights). If you want to generate 17-18% returns (which is tough but not impossible task), you need to start looking towards small/mid cap allocations more which can give you higher alpha, while large cap give you lesser than 17-18% return, but gives stability.

Promoter (Prasad minesh lad) is politically connected and this could be the reason of major revenue coming from govt.

I think this could be a possible reason for its lower valuation. 77.64% for their Rev comes from Govt.
Thank you @Worldlywiseinvestors for making a video about this industry.

1. Company has reduced debt.
   Company has delivered good profit growth of 18.7% CAGR over last 5 years
   Debtor days have improved from 40.5 to 28.6 days.
   Company’s median sales growth is 19.0% of last 10 years
   Company’s working capital requirements have reduced from 57.5 days to 35.0 days
2. PE and PB very low. Very lucrative price and consistently making profit.
3. Its chemical industry and very fluctuating profits due to demand and supply concerns. But it is giving profit consistently every year.
4. Margin Volatility: The company’s operating margin remains volatile due to the supply issues of hydrofluosilicic acid. It procures it from distant sources, resulting in higher costs that periodically increase due to rising fuel prices.
5. Client Concentration: In FY24, revenue from the top customer made up about 53% of total revenue, up from 39% in FY22. The second top customer contributed 23% in FY24, down from 38% in FY22.
6. Geographical Split:
   Odisha: 61% in FY24 vs 58% in FY22
   Chhattisgarh: 23% in FY24 vs 13% in FY22
   Madhya Pradesh: 12% in FY24 vs ~14% in FY22
   Others: 4% in FY24 vs 15% in FY22
7. Raw Material Arrangement
   The top raw materials consumed by the company are Alumina Hydrate (~57%), and Hydrofluosilicic Acid (23%).
8. Its quarterly result of Jun 2024 was not good. Looking at the past trend, it seems Q1 of FY are cyclically down. Does it mean its good price to enter this stock before its Q2 result. Please provide your thoughts about this stock. Not an expert of the chemicals this Company deals with and this stock is falling so much.

There are better companies in market to invest than Happiest Minds. Its just not promising enough to put your money on. They werent able to give any returns for past 3 years. Infact I am in 30% loss. And as soon as stock tried to take stance at 900 Rs price, the Founder sold the stock and pushed it to 700s.

i think in 2 years the stock may again reach to 1000 and by then it will be time for Soota to sell another portion of its stock as stated by him. And boom! back to 700s. So for a good half decade this stock is going to give returns less than inflation.