Persistent Systems Ltd. share price target and research reports

Latest analyst research reports with target prices and PDF download for PERSISTENT, BSE:533179 Persistent Systems Ltd.

Persistent Systems Ltd.

08 Jul 2019

5227.50

-0.10%

Persistent

Accumulate: Persistent Systems Ltd.

Recommendation Target

Dolat Capital

With gain in size of the business operations and diversity, Persistent has been constrained on management bandwidth at the leadership level. To address this long due requirement, Persistent appointed Mr. Christopher (Chris) O'Connor as CEO of the company in Feb'19. Chris is a long time IBM veteran and has led their IoT business unit. He was part of the top-300 club at IBM, and has held various managerial roles. We believe that Chris's experience, understanding of the IBM products and access with all key IT decision makers could be instrumental to drive the Alliance business (~29%...

Persistent Systems Ltd. is trading below all available SMAs

Persistent Systems Ltd.

14 Jun 2019

5227.50

-0.10%

Persistent Systems

Hold: Persistent Systems Ltd.

ICICI Securities Limited

The company's FY19 dollar revenue growth was muted (at mere 2.2% YoY) mainly on the back of demand fulfilment issues. In this respect, the management has restructured its sales team by hiring sales people, market business leaders and aligning incentive structure. Further, the company is now focusing on a verticals led strategy to drive cross sell and up sell opportunities. The company will focus on healthcare & life sciences, BFSI and industrial to drive sales. It would also aim to increase opportunity in reseller business on the IP side. In addition, M&A; and partnerships would...

Persistent Systems L.. has an average target of 5848.11 from 9 brokers.

Persistent Systems Ltd.

13 Jun 2019

5227.50

-0.10%

Building blocks towards the elusive cross-sell

Buy: Persistent Systems Ltd.

Motilal Oswal

PSYS' new CEO shared the broad tenets of its strategy, which involves various structural changes, one of the most important being alignment of sales team.

Persistent Systems L.. has an average target of 5848.11 from 9 brokers.

Persistent Systems Ltd.

07 May 2019

5227.50

-0.10%

PERSISTENT SYSTEMS LIMITED

Hold: Persistent Systems Ltd.

Target

Geojit BNP Paribas

Persistent Systems Ltd (PSYS) is one of the leading outsourced product development (OPD) companies in India. As on Q4FY19, the company recognized about 78.4% revenue from services and 21.6% from IP-led business. The company has strong work force of 9,962 employees. PSYS' business spread across North America (80.9%...

Number of FII/FPI investors increased from 904 to 993 in Jun 2025 qtr.

Persistent Systems Ltd.

02 May 2019

5227.50

-0.10%

EARNINGS UPDATE- PERSISTENT SYSTEMS 4QFY19

Buy: Persistent Systems Ltd.

Target

Chola Wealth Direct

Sector: IT /Mid-Cap | Earnings Update 4QFY19 Background: Persistent Systems is one of the leading outsourced product development (OPD) companies in India. 4QFY19: Revenue from business offering mix: Services (78.4%) & IP led business (21.6%). The company has industry expertise in ISV (41.2%), Enterprise (37.2%) and IP Led (21.6%). Company has strong workforce of 9,962 employees. The company's business is spread across North America (80.9%), Europe (7.9%), and RoW (11.2%).Company earns revenue from global delivery centers (31.4%), India (47%) and IP Led (21.6%). Total active clients stood at 605 including services and IP led business. Company's top client accounts 20.2% in...

Persistent Systems L.. has an average target of 5848.11 from 9 brokers.

Persistent Systems Ltd.

02 May 2019

5227.50

-0.10%

Persistent

Buy: Persistent Systems Ltd.

Target

Kotak Securities

Revenue growth in US$ term remains lower than our expectation. Persistent's Q4FY19 consolidated revenue decreased by 2% qoq in US$ terms to US$ 118 mn (vs expectation of US$ 121 mn) led by 15% qoq decrease in IP revenue (partly due to seasonality factor and partly due to lower revenue from top clients). Going forward, the company indicated that...

Persistent Systems L.. has an average target of 5848.11 from 9 brokers.

Persistent Systems Ltd.

01 May 2019

5227.50

-0.10%

Growth trends remain challenging

Buy: Persistent Systems Ltd.

Motilal Oswal

In FY19, PSYS faced challenges in its top client, which impacted its Services and IP revenue. Consequently, 1 May 2019 revenue growth was tepid at 2.2% YoY, while EBITDA/PAT increased 38%/12% YoY in the year. Amidst the earnings softness, the uptick in payout to 92% (including INR2.25b buyback) was to some extent comforting. IP revenue (22% of the top line) was down 15% QoQ owing to seasonality and a weak performance from IBMs CE/CLM segment (more than 40% contribution to IP). Revenue from Services increased 2.3% QoQ and 26.5% YoY), well above our estimate of INR726m mainly due to the margin beat. appears to have bottomed out, expanding 230bp YoY to 17.8% (adjusted) in FY19 after two years of downtrend. 4QFY19 EBITDA margin shrank 230bp QoQ to 17.4% (adjusted for IL&FS; provisioning) driven by a dip in IP revenue, but was ahead of our estimate of 15.7% due to better pricing in linear services and write-back of bonus incentives.

Number of FII/FPI investors increased from 904 to 993 in Jun 2025 qtr.

Persistent Systems Ltd.

30 Apr 2019

5227.50

-0.10%

Persistent Systems (4QFY19): Inertia persists'. Maintain NEUTRAL

Neutral: Persistent Systems Ltd.

Recommendation Target

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.

Number of FII/FPI investors increased from 904 to 993 in Jun 2025 qtr.

Persistent Systems Ltd.

30 Apr 2019

5227.50

-0.10%

Persistent Systems (REDUCE): Inability to counter IP business perils

Sell: Persistent Systems Ltd.

BOB Capital Markets Ltd.

Persistent Systems (PSYS) closed the Mar'19 quarter with a 15% QoQ decline in IP revenues and 450bps QoQ contraction in reported EBITDA margins. The historically weak growth momentum entering into FY20 will render revenue growth a tall task. Management intends to maintain steady operating margins in FY20 and use the cash kitty for inorganic opportunities. We roll over to a revised Mar'20 TP of Rs 650 (vs. Rs 640) and reiterate REDUCE as we remain...

Persistent Systems Ltd. is trading below all available SMAs

Persistent Systems Ltd.

30 Apr 2019

5227.50

-0.10%

Persistent Systems

Hold: Persistent Systems Ltd.

Target

ICICI Securities Limited

Expect company to lag industry growth in revenues Revenue growth was muted in FY19 due to specific issues in the top customer, concerns in meeting demand and weak performance in IP led business. Going forward, the management indicated better FY20E vs. FY19, driven by delivery capability enhancement, meeting demand by hiring at sales level and positive commentary from clients. Further, acceleration in digital business would support growth in coming years. However, a pick-up in IP business and services is required for the company to register double...

Number of FII/FPI investors increased from 904 to 993 in Jun 2025 qtr.

Is Persistent Systems Ltd. worth buying?

316 Votes:

Buy 77.53%

Sell 13.92%

Hold 8.54%

RESEARCH REPORTS

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