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Buy Persistent Systems target of Rs 2344: Prabhudas Lilladher

Prabhudas Lilladher is bullish on Persistent Systems has recommended buy rating on the stock with a target price of Rs 2344 in its research report dated May 01, 2021.

June 10, 2021 / 10:44 AM IST
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Prabhudas Lilladher's research report on Persistent Systems

Persistent has not only reported excellent performance in 4QFY21 (+4.6% QoQ USD) but also shown strong consistent revenue growth (+12.8% YoY USD) and margin expansion (+290 bps) throughout the year. Growth in 4QFY21 was led by strong growth in Services (+8.2% QoQ USD) which offset the seasonal decline in IP led revenues (-7.4% QoQ USD). We believe that strong revenue growth momentum can sustain given i) management’s confidence to win $200-250 mn TCV each quarter, ii) strong deal pipeline iii) improvement in growth trajectory of Alliance business, iv) broad-based growth across all three verticals and v) expansion of presence in Europe.


We arrive at changed TP of INR 2344 (earlier: 2017). Persistent is currently trading at 25.3x/21.7x on FY22/23 earnings of INR 80.5/93.8 we continue to remain way ahead than cons estimates. Maintain Buy.

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: May 21, 2021 03:32 pm

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