Sharekhan's research report on Persistent Systems
The company continues to outpace peer companies and remains well positioned to deliver industry-leading growth in FY25, aided by robust order inflows and strong growth momentum across key markets and verticals. Persistent managed to buck the y-o-y deal win moderation trend seen in most IT services companies, especially Tier-1 peers in Q2FY25, reporting strong order inflows and highest ever deal win TCV. The company expects margin expansion in the coming quarters due to reduced SG&A investments, structural cost cuts, and operational efficiencies. The company remains committed to its margin improvement target of 200-300 bps by FY27.
Outlook
We maintain BUY with revised PT of Rs. 7,280 (valuing at 56x Dec26E EPS). At CMP, the stock trades at 71.6/56.1/46.7x its FY25/26/27E EPS.
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