Sharekhan's research report on Persistent Systems
Reported revenue stood at $375.2 million, up 4.5% q-o-q in CC terms, beating our estimates of 4 % q-o-q growth in CC. EBIT margin improved ~70 bps q-o-q to 15.6% % but missed our estimate of 15.9%. TTM TCVs stood at $517.5 million, down 13%/up 16%y-o-y. Management is confident of achieving a 200-300 bps margin improvement as they aspire to hit the $2 billion revenue target by FY27.
Outlook
We maintain Buy rating with a revised PT of Rs 5,780 (valued at 42x FY27E EPS). At CMP, the stock trades at 46.2/37.2x FY26/27E EPS.
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