KR Choksey's research report on Persistent Systems
Revenue of INR 27,372 Mn (+17.9% YoY/+5.7% QoQ) was driven by BFSI (+9.0% YoY), Healthcare & Lifesciences (+69.7% YoY), and Software, Hi-Tech, and emerging industries (+4.2% YoY), beating our estimate by 1.1%. EBIT of INR 3,840 Mn rose by 28.9% YoY (+2.6% QoQ), beating our projections by 0.5%; EBIT margins improved by 119bps YoY (-42bps QoQ). PAT jumped by 33.9% YoY (-2.8% QoQ) to INR 3,064 Mn, missing our projections by 0.9%; PAT margins improved by 134bps YoY (-98bps QoQ).
Outlook
We lower our FY26E EPS to INR 104.3 (previously: INR 107.1) and raise our P/E multiple to 47.0x (previously: 36.0x) to arrive at a TP of INR 4,901 (previously: INR 3,857) reflecting strong performance and deal wins. Due to the recent price surge, we now view PSYS as fairly valued with limited upside, prompting us to downgrade our rating to “HOLD” from “ACCUMULATE”.
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.
