Moneycontrol PRO
Upcoming Webinar:Watch a panel of experts discuss: Challenges of continuously evolving regulation for Cryptocurrency, on 7th July at 3pm. Register Now

Buy Persistent Systems; target of Rs 1380: ICICI Direct

ICICI Direct is bullish on Persistent Systems recommended buy rating on the stock with a target price of Rs 1380 in its research report dated October 27, 2020.

October 29, 2020 / 01:43 PM IST
  • bselive
  • nselive
Todays L/H

ICICI Direct's research report on Persistent Systems

Persistent System reported a healthy set of Q2FY21 numbers. Dollar revenues increased 3.9% QoQ to US$136 million, mainly led by 5.3% QoQ increase in services revenues (83% of revenues) partially offset by 3.0% QoQ decline in IP led revenues. Rupee revenues increased 1.7% QoQ to Rs 1007 crore. In terms of verticals growth was led by technology companies & emerging vertical (up 4.5% QoQ) and financial services (up 4.2% QoQ). In terms of geography, growth was led by Americas (up 7.1% QoQ), partially offset by Europe (declined 22.6% QoQ due to absence of large one-time IP deal in the current quarter). The EBITDA margin expanded 160 bps QoQ to 16.4% mainly led by 170 bps increase in gross margins.


Further, considering multiple levers for cost rationalisation, margins are expected to see an improved trajectory in the long term. Hence, we maintain our BUY rating with a revised target price of Rs 1,380 (18x FY23E EPS).

For all recommendations report, click here


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

Broker Research
first published: Oct 29, 2020 01:43 pm
ISO 27001 - BSI Assurance Mark