Buy Persistent Systems, target price Rs 4995: Jayesh Bhanushali

Jayesh Bhanushali of IIFL has buy call on Persistent Systems with a target price of Rs 4995. The current market price of Persistent Systems is Rs 4811.8.Jayesh Bhanushali recommended to keep stop loss at Rs 4650.

Persistent Systems, incorporated in the year 1990, is a Mid Cap company (having a market cap of Rs 36832.65 Crore) operating in IT Software sector.

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


Financials
For the quarter ended 31-03-2023, the company has reported a Consolidated Total Income of Rs 2263.30 Crore, up 2.78 % from last quarter Total Income of Rs 2202.12 Crore and up 34.73 % from last year same quarter Total Income of Rs 1679.93 Crore. Company has reported net profit after tax of Rs 251.51 Crore in latest quarter.

The company’s top management includes Dr.Anand Deshpande, Dr.Ambuj Goyal, Mr.Arvind Goel, Ms.Avani Davda, Prof.Deepak Phatak, Mr.Praveen Kadle, Dr.Anant Jhingran, Ms.Roshini Bakshi, Mr.Sunil Sapre, Mr.Sandeep Kalra, Mr.Danl Lewin. Company has Walker Chandiok & Co. LLP as its auditors. As on 31-03-2023, the company has a total of 8 Crore shares outstanding.

Investment Rationale
The stock has given a Flag pattern breakout.

Promoter/FII Holdings
Promoters held 31.26 per cent stake in the company as of 31-Mar-2023, while FIIs owned 20.55 per cent, DIIs 27.6 per cent.