Despite strong domain expertise in ISV and niche specialisation (partner-led) in BFSI/Healthcare verticals, PSYS has lagged peers significantly (both rev/EPS) over the past two years. Low annuity mix (project-heavy model), limited large deals and low sales velocity have been the nemesis. The recent management induction (CEO/Head Tech services/Head IBM Alliance) is aimed to reverse this. We believe that growth recovery will be protracted and expect USD rev/EPS CAGR of 7/3% CAGR. Valuations are supported by high cash (30% of M-cap) and FCF yield (~8%). We maintain NEUTRAL on Persistent Systems (PSYS) following a muted 1QFY20. It is vital that the recent top management revamp helps break the inertia on growth. Our TP of Rs 615 is based on a generous 13x Jun-21E EPS, premised on hope around this development.