Buy Persistent Systems; target of Rs 6200: Sharekhan

buy

Sharekhan's research report on Persistent Systems

The company is aspiring to achieve $USD2 billion revenue milestone, aided by its diversified product engineering and IT service offerings, focus on large deal bookings, and broad-based growth across its verticals. Management has reiterated its commitment of 200-300 bps EBIT margin improvement, aided by cost-optimisation programs, reduction in SG&A, rationalisation of ESOP cost, and higher utilisation. Management is looking at tuck-in acquisitions to improve capabilities in cyber security.

Outlook

We maintain BUY with revised PT of Rs. 6,200 (valued at 50x Sept26E EPS). At CMP, the stock trades at 59.5/46.3/38.4x its FY25/26/27E EPS.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Persistent Systems - 10092024 - khan