Motilal Oswal's research report on Persistent Systems
We recently met with the management team of PSYS to understand the company’s strategic priorities and financial outlook for the coming years. Key takeaways: (1) PSYS is targeting a revenue of USD2b by FY27, and the management is optimistic about achieving this target despite a challenging business environment. (2) The company is implementing strict cost management strategies and has visible margin levers such as SG&A, offshoring and pyramid; it has already accounted for one-time expenses, which will no longer impact future margins. (3) PSYS is capitalizing on market opportunities, benefiting from vendor consolidation and focusing on high-demand areas like data, cloud, digital engineering, and platform engineering to strengthen its relationship with clients. (4) PSYS aims to diversify geographically to increase its European revenue share from 7-8% to 12%, while it is also exploring new sectors such as AI-driven solutions and enhancing its contact center capabilities.
Outlook
We introduce FY27 estimates and roll over to Sep’26E EPS. Reiterate BUY with a TP of INR6,300, based on 50x Sep’26E 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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
