Despite strong domain expertise in ISV and niche specialisation (partner-led) in BFSI/Healthcare verticals, PSYS has lagged peers significantly (both rev/EPS) historically with low annuity/high project-based being the nemesis. However, we reckon that the trajectory has bottomed out following the recent leadership changes based on (1) Strong participation in Salesforce ecosystem (USD 60mn annual-rate biz), (2) Early signs of deal momentum (long tenured deal wins in BFSI) supported by sales re-alignment, and (3) Broad-based IP growth (Alliance/Accelerite) with pick up in renewals (93%) in Alliance. Expect 8/5% CAGR in rev/APAT over FY19-22E. Key risks include worsening working capital, volatility in Digital business (platform-led) & Alliance. We maintain BUY on Persistent Systems (PSYS) following an in-line 2Q. PSYS is exhibiting early signs of recovery (steady TSU, broad-based IP, sales velocity) and valuations are reasonable (12.5x FY21E). Our TP is Rs 670, valued at 13x Sep-21E EPS.