Accumulate Persistent Systems; tgt of Rs 550: Angel Broking

Angel Broking is bullish on Persistent Systems and has recommended accumulate rating on the stock with a target of Rs 550 in its January 28, 2013 research report.
  • Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead GrowMyMoney Tech Control
moneycontrol.com

Home » News » Recommendations

Jan 30, 2013, 12.13 PM | Source: Moneycontrol.com

Accumulate Persistent Systems; tgt of Rs 550: Angel Broking

Angel Broking is bullish on Persistent Systems and has recommended accumulate rating on the stock with a target of Rs 550 in its January 28, 2013 research report.

Like this story, share it with millions of investors on M3

Accumulate Persistent Systems; tgt of Rs 550: Angel Broking

Angel Broking is bullish on Persistent Systems and has recommended accumulate rating on the stock with a target of Rs 550 in its January 28, 2013 research report.

Post Your Comments

Share Cancel

(more)

, Angel Broking |

Angel Broking is bullish on Persistent Systems and has recommended accumulate rating on the stock with a target of Rs 550 in its January 28, 2013 research report.
 
“Persistent Systems (Persistent) reported its 3QFY2013 results, which came in line with our expectations on the revenue front but disappointed on the operating margin front due to higher than expected S&M investments. The Management sounded confident of surpassing Nasscom’s industry growth forecast of 11% yoy (USD revenue) for FY2013 with incremental growth being led by the key focus areas of cloud, analytics and collaboration. Also, considering the company’s buoyant performance in 9MFY2013, we believe the Management’s growth outlook is achievable. We maintain our Accumulate rating on the stock.”
 
“For 3QFY2013, Persistent reported a revenue of US$60.8mn, up 1.2% qoq. The company’s EBITDA margin declined by 248bp qoq to 24.8% due to higher SG&A costs (up 13.3% qoq). The PAT came in at Rs50cr, up 10.9% qoq, aided by forex gain of Rs1.8cr as against loss of Rs4.1cr n 2QFY2013.”
 
“Persistent’s Management sounded confident of the company’s growth exceeding Nasscom’s growth estimate for the industry of 11% yoy in FY2013, citing that the deal pipeline has increased by ~50% as compared to that in the same quarter last year. Also, the company got back into hiring mode after five consecutive quarters of net headcount reduction seen earlier, and indicated that it will add ~300 net employees in 4QFY2013. The Management also indicated that ~500 offers have already been extended to campus graduates for FY2014. Over FY2012-14, the company is expected to record a USD and INR revenue CAGR of 13.1% and 19.7%, respectively. Over FY2012-14, we expect the company to record an EBITDA and PAT CAGR of 21.8% and 23.4%, respectively. At the current market price of Rs522, the stock is trading at 9.7x FY2014E EPS of Rs54.0. We value the stock at 10x FY2014E EPS, which gives us a target price of Rs550, and maintain an Accumulate rating on the stock," says Angel Broking research report.

Non-Institutions holding more than 90% in Indian cos

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click here

Buy, Hold, Sell ? Hear it first on M3
Accumulate Persistent Systems; tgt of Rs 550: Angel Broking

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login