Buy Persistent Systems; target of Rs 4410: Anand Rathi

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26 Aug, 2025 12:21

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Anand Rathi's research report on Persistent Systems

Persistent was resilient in key metrics despite the top client sliding 21% q/q as it reported 5% q/q (organic) company growth. Tail winds came from the IP-led business, which surprised, absorbing almost half of the fall. The EBIT margin rose 27bps q/q, absorbing 230bps of the wage-hike impact and was 72bps higher y/y. TCV touched $368m, up 30% y/y and net new TCV was up 53% y/y; no slow down yet. Management intends to maintain growth; margins would improve as supply challenges seem to be behind.

Outlook

We revise estimates ~10% driven by TCVs and margins. Target increased to Rs.4,410 (23x FY25, earlier Rs.4,290).

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Persistent Systems - 251022 - anand