Buy Persistent Systems; target of Rs 1770: Sharekhan
Sharekhan is bullish on Persistent Systems has recommended buy rating on the stock with a target price of Rs 1770 in its research report dated January 29, 2021.
February 08, 2021 / 08:54 PM IST
Sharekhan's research report on Persistent Systems
Q3 numbers beat estimates on all fronts, along with strong headcount addition, healthy collections and robust deal bookings; strong hiring indicates ramp-up of large deals and improving demand. TSU segment would continue growth momentum on strong deal wins, robust deal pipeline and higher adoption of new-age technologies. Management expects strong revenue growth in Alliance business from Q1FY2022E. We expect USD revenue/earnings to clock a CAGR of 14%/22% over FY2021-FY23E, led by ramp-up of deal wins, a healthy deal pipeline, a wider relationship with IBM & a rise in margins expansion.
We retain a Buy on Persistent Systems Limited (PSL) with a revised PT of Rs. 1,770, as we expect strong earnings growth over FY2021-23E.
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