Buy Persistent Systems: target of Rs 4160: Sharekhan

Sharekhan is bullish on Persistent Systems has recommended buy rating on the stock with a target price of Rs 4160 in its research report dated September 14, 2021.

Broker Research

September 15, 2021 / 10:13 IST

"India’s specialty chemicals industry is a decadal growth opportunity and it is still not too late to participate in the value creation process. We prefer CRAMS/CSM players Navin Fluorine (Navin) and PI Industries (PI) as they provide long-term earnings visibility. We also like UPL due to robust growth outlook and reducing debt concerns and SRF due to rising contribution from the chemicals business," JM Financial research report.

26 Aug, 2025 12:21

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Sharekhan's research report on Persistent Systems

With ~60% of revenues arising from digital engineering, PSL is well-poised to capture opportunities from rising spends on digital engineering, the market for which is likely to click a 16% CAGR over 2020-2025. We expect USD revenue/earnings to clock report a CAGR of 20%/30% over FY2021-FY2024E, led by broad-based demand, robust deal TCVs, healthy deal pipeline and steady addition of new logos. Wage revisions would affect margins by 250-275 bps q-o-q in Q2FY2022, but the net effect is likely to be restricted to 75-100 bps, given operating leverage and lower visa costs.

Outlook

We retain a Buy on Persistent Systems with a revised PT of Rs. 4,160, on expectations of industry-leading organic revenue growth, healthy cash generation, and M&A activity to enhance capabilities.

For all recommendations report, click here