Moneycontrol

Budget 2021

Associate Partners:

  • SMC
  • Samsung
  • Volvo

Moneycontrol

Budget 2021

Associate Partners:

  • SMCSamsungVolvo
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Buy Persistent Systems: target of Rs 1720: Sharekhan

Sharekhan is bullish on Persistent Systems has recommended buy rating on the stock with a target price of Rs 1720 in its research report dated January 01, 2021.

January 14, 2021 / 08:51 PM IST
 
 
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Sharekhan's research report on Persistent Systems


We expect USD revenue to grow by 5% q-o-q to $142.9 million (excluding revenue from re-seller deal) in Q3FY2021, led by healthy growth in TSU business and strong seasonality in Alliance business. EBIT margin is expected to improve by 10 bps q-o-q in Q3FY2021 despite two-month impact of wage hike and increased hiring. Headwinds would be offset by higher Alliance revenue and rising offshoring revenue. Cash and cash equivalents account for 15% of its current market capitalisation; strong balance sheet and potential strong earnings growth (22% CAGR over FY2021-FY2023E) provide us comfort on the stock despite the recent run up.


Outlook


We retain our Buy rating on Persistent Systems Limited (PSL) with a revised PT of Rs. 1,720, given anticipated strong revenue growth in FY2022E and FY2023E.


For all recommendations report, click here


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Broker Research
first published: Jan 6, 2021 12:26 pm

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