PSYS' recent trends have been a tale of two cities with the TSU segment accelerating to mid-teens growth (vs. high single-digit avg. over 10 qtrs), while Alliance & Accelerite units continue to be choppy. PSYS' S&M re-alignment towards client mining, cross-sell and large deals as well as delivery rejig has resulted in strong uptick in TSU. Large opportunity exists to stabilise the volatility in Alliance portfolio (leadership change), but it may be gradual even as T1 account concentration continues to decline. Margins have bottomed-out and are expected to improve with oplev, stability in Alliance and SG&A efficiencies. Expect 10.5/12.5% CAGR in USD rev/APAT over FY20-22E. Key risks include worsening working capital and continued volatility in Alliance business. We maintain BUY on Persistent Systems (PSYS) following an in-line rev. TSU business is on an upswing (sustainable), Alliance business is work-in-progress and margins have bottomed-out. Our TP is Rs 745, at 13x Dec-21E (10-yr avg.) with moderate increase in est (~3%).