Sep 28, 2012, 01.45 PM | Source: Moneycontrol.com
Firstcall Research is bullish on Persistent Systems and has recommended buy rating on the stock with a target of Rs 472 in its September 26, 2012 research report.
, Firstcall Research |
“Persistent is a global company specializing in software product and technology innovation. For more than two decades, the company has partnered closely with pioneering start-ups, innovative enterprises and the world’s largest technology brands. Persistent focuses on developing best-in-class solutions in four key next-generation technology areas: Cloud Computing, Mobility, Analytics & Collaboration for life sciences, telecommunications, consumer packaged goods, banking & financial services and healthcare verticals across North America, Europe, and Asia. Persistent is the first company in Asia to receive strategic investment from the Intel (IA-64) Fund. Persistent customers benefit from deep knowledge of next-generation Cloud, BI & Analytics, Collaboration as well as Mobility-based computing platforms. By leveraging its strategic technology partnerships, IP-based accelerators, and agile development processes companies can successfully navigate increasing time-to-market pressures and deliver the highest quality solutions, faster and more cost effectively.”
“Persistent Systems Ltd established in 1990 is a global company specializing in software product development services, reported its financial results for the quarter ended 30th June, 2012. The first quarter witness a healthy increase in overall sales as well as profitability of the company. The company’s net profit jumps to Rs.415.78 million against Rs.275.68 million in the corresponding quarter ending of previous year, an increase of 50.82%. Revenue for the quarter increase 34.37% to Rs.3007.04 million from Rs.2237.84 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.10.39 a share during the quarter, registering 50.82% increase over previous year period. Profit before interest, depreciation and tax is Rs.760.08 millions as against Rs.526.79 millions in the corresponding period of the previous year.”
“At the current market price of Rs.418, the stock P/E ratio is at 9.80 x FY13E and 8.63 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.42.66 and Rs.48.46 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 24% and 11% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 5.22 x for FY13E and 4.48 x for FY14E. Price to Book Value of the stock is expected to be at 1.65 x and 1.39 x respectively for FY13E and FY14E. We expect that the company surplus scenario is likely to continue for the next years, will keep its growth story in the coming quarters also. We recommend buy in this particular scrip with a target price of Rs.472 for Medium to Long term investment,” says Firstcall Research report.
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