Sharekhan's research report on Persistent Systems
Persistent Systems announced the acquisition of Google Cloud premium partner MediaAgility for $71.7 million. The transaction is valued at 2.8x EV/revenue on CY2021 basis. The acquisition will accelerate and deepen Google Cloud partnership, scale new offerings, expand the company’s client footprint and give it access to talent pool. This transaction will help PSL to scale-up its Google Cloud practice going ahead. Though the acquisition would be EBITDA-margin neutral, intangible amortisation expenses would affect EBIT margins by 45-50 bps in FY2023. Synergies are expected do gradually reduce margin dilution.
Outlook
We retain a Buy on PSL with an unchanged PT of Rs. 5,550, given building more growth avenues via tuck-in acquisitions, robust execution and broad-based demand.
More Info
At 09:15 hrs Persistent Systems was quoting at Rs 4,424.05, up Rs 103.00, or 2.38 percent.
It has touched an intraday high of Rs 4,424.05 and an intraday low of Rs 4,415.95.
It was trading with volumes of 21 shares, compared to its thirty day average of 14,385 shares, a decrease of -99.85 percent.
In the previous trading session, the share closed down 3.40 percent or Rs 152.25 at Rs 4,321.05.
The share touched its 52-week high Rs 4,986.85 and 52-week low Rs 1,735.40 on 03 January, 2022 and 15 March, 2021, respectively.
Currently, it is trading 11.29 percent below its 52-week high and 154.93 percent above its 52-week low.
Market capitalisation stands at Rs 33,810.80 crore.
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