Webinar :Register now for webinar on 'Trade BankNifty in just 15 minutes a day' - By Asmita Patel
Last Updated : Oct 29, 2020 11:09 AM IST | Source: Moneycontrol.com

Accumulate Persistent Systems; target of Rs 1300: Dolat Capital Market

Dolat Capital Market recommended accumulate rating on Persistent Systems with a target price of Rs 1300 in its research report dated October 26, 2020.

Broker Research
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Dolat Capital Market's research report on Persistent Systems


Persistent reported stellar Q2 performance, with 3.9% QoQ growth at $136mn (DE 2.9%). OPM improved by 170bps QoQ to 12.1% (DE 10.6%) driven by sustained traction in TSU business (up 4.1% QoQ). Commentary turns further confident as the Newly instated CEO expect the turnaround in the Alliance business in FY22e both on growth as well as profitability, while expects momentum in the TSU business to continue to clock healthy growth led by robust deal-win momentum. Expect sustenance of Profitability despite impending wage hikes given potential for improvement in Alliance biz (offshore shift), efficiency in the volumes and normalization of ramp-down/discount impact.


Outlook


Accounting for its strong performance, confident commentary (deal wins), improved business traction in Alliance and unutilized margin levers we have upgraded our estimates for FY21/22E by ~11%. We assign Accumulate rating on the stock with TP of Rs1300 valued at 19x FY23E earnings.


For all recommendations report, click here


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.

First Published on Oct 29, 2020 11:09 am
Sections