6228.5000 -72.00 (-1.14%)
NSE Dec 29, 2025 15:31 PM
Volume: 250.2K
 

6228.50
-1.14%
HDFC Securities
PSYS has lagged peers significantly on revenue and profit growth over FY17-19. High client concentration (top a/c at 24%), erratic revenues (high reliance on IBM sales to drive growth in Alliance biz) and weak client franchise are mostly to blame. The recent management rejig, including CEO (ex IBM) and Head Tech services (ex Harman and HCLT) may help change things, but need monitoring. Our USD rev/EPS CAGR at 8/4% over FY19-21 do not assume a change in trajectory. Valuations at 12.8x, strong FCF generation, high cash (25% of M-cap) provide relief in an otherwise uninspiring story. Key risks are decline in Alliance business and value destructive acquisitions. We maintain NEUTRAL on Persistent Systems (PSYS) after an expectedly weak 4QFY19. Recent management changes may revive trajectory. We await more clarity on the specifics. Our TP at Rs 645 is based on 13x FY21E EPS.
Persistent Systems Ltd. is trading below its 30 day SMA of 6329.4
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