Buy Persistent Systems, target price Rs 3950: Emkay Global

Emkay Global has buy call on Persistent Systems with a target price of Rs 3950. The current market price of Persistent Systems is Rs 3690.2.

Persistent Systems Ltd., incorporated in the year 1990, is a Mid Cap company (having a market cap of Rs 28261.97 Crore) operating in IT Software sector.

Persistent Systems Ltd. key Products/Revenue Segments include Software Services and Software Licence for the year ending 31-Mar-2022.



Financials
For the quarter ended 30-09-2022, the company reported a Consolidated Total Income of Rs 2056.70 Crore, up 8.30 % from last quarter Total Income of Rs 1899.09 Crore and up 48.64 % from last year same quarter Total Income of Rs 1383.66 Crore. Company reported net profit after tax of Rs 220.01 Crore in latest quarter.

Investment Rationale
The brokerage retains BUY with TP of Rs3,950 at 25x Sep-24E EPS (earlier Rs3,800), considering the strong execution, favorable industry tailwinds, and strong earnings trajectory (24.4% EPS CAGR over FY22-25E)

Promoter/FII Holdings
Promoters held 31.26 per cent stake in the company as of 30-Jun-2022, while FIIs owned 20.45 per cent, DIIs 25.94 per cent.