Shares of Persistent Systems fell sharply on Thursday after a major US client, UnitedHealth Group, saw its Chief Executive Officer step down abruptly. and pulled back its 2025 financial guidance.
Persistent’s stock dropped 3.59 percent in intraday trade on the NSE to hit a low of Rs 5,552 per share. The scrip later trimmed some losses but was still down 2.93 percent at Rs 5,589.5 at around 12:30 PM. The stock has declined nearly 5 percent over the past three trading sessions.
The latest slide was triggered by developments at UnitedHealth Group, whose shares tumbled over 15 percent on Tuesday after CEO Andrew Witty resigned suddenly citing personal reasons. The US-based healthcare giant also withdrew its financial forecast for next year.
UnitedHealth is among Persistent’s top clients and falls in the $100 million-plus revenue bracket, brokerage Dolat Capital said in a client note, reported CNBC-TV18.
Nearly 60 percent of Persistent’s revenue in FY25 came from the healthcare segment, the brokerage added, cautioning that growth may now shift towards non-healthcare verticals in the near term.
UnitedHealth has faced a series of issues over the last year. These include a large-scale cyberattack on its tech arm impacting around 190 million people, a federal probe into its Medicare billing practices and a rise in medical expenses that caught analysts off guard.
In a separate development, The Wall Street Journal reported that the company is currently under investigation for alleged Medicare fraud.
UnitedHealth also made headlines last year after Brian Thompson, the CEO of its insurance division, was killed in New York just ahead of a key investor meet. The company later posted its first earnings miss since the 2008 financial crisis in April this year.
Dolat Capital warned that Persistent Systems’ premium valuations may come under pressure. Persistent Systems is a Pune-headquartered IT services firm.
(With Inputs from Reuters)
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