HomeNewsBusinessStocksBuy Persistent Systems; target of Rs 7000: Sharekhan

Buy Persistent Systems; target of Rs 7000: Sharekhan

Sharekhan is bullish on Persistent Systems has recommended buy rating on the stock with a target price of Rs 7000 in its research report dated June 17, 2025.

June 18, 2025 / 08:50 IST
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buy
buy

Sharekhan's research report on Persistent Systems

The company is well-positioned to deliver top quartile growth in FY26, aided by robust order inflows and strong growth momentum across key markets and verticals. The management expects the BFSI and Software, Hi-Tech verticals to lead growth in FY26, followed by the healthcare & life sciences despite potential short-term pressures from DOGE/USAID funding cuts impacting healthcare clients. Growth-led operating leverage, lower SGA, right shoring, subcontractor optimisation, pricing to aid margin improvement for fiscals ahead.

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Outlook

We maintain BUY with revised PT of Rs. 7,000 (51x FY27E EPS). At CMP, the stock trades at 54.3/44.1x its FY26/27E EPS.