Persistent Systems Ltd (PERSISTENT) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

HCL Technologies

Persistent Syste

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Coforge

Hexaware Tech.

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L&T Technology

Wipro

Mphasis

Tata Elxsi

Why is Persistent Systems Ltd ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 21.92%

Healthy long term growth as Net Sales has grown by an annual rate of 28.35% and Operating profit at 38.08%
Company has a low Debt to Equity ratio (avg) at 0 times

With a growth in Net Sales of 5.52%, the company declared Very Positive results in Dec 25

The company has declared positive results for the last 8 consecutive quarters
NET SALES(9M) At Rs 10,692.52 cr has Grown at 22.95%
ROCE(HY) Highest at 29.52%
PBDIT(Q) Highest at Rs 733.07 cr.

With ROE of 23.3, it has a Very Expensive valuation with a 10.5 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -9.32%, its profits have risen by 36.5% ; the PEG ratio of the company is 1.2

High Institutional Holdings at 52.61%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 0.77% over the previous quarter.

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Persistent Syste should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Persistent Syste for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Persistent Syste

-9.32%

-0.28

33.16%

Sensex

4.35%

0.37

11.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

28.35%

EBIT Growth (5y)

38.08%

EBIT to Interest (avg)

39.65

Debt to EBITDA (avg)

0.32

Net Debt to Equity (avg)

-0.20

Sales to Capital Employed (avg)

1.68

Tax Ratio

22.78%

Dividend Payout Ratio

38.96%

Pledged Shares

Institutional Holding

52.61%

ROCE (avg)

34.09%

ROE (avg)

21.92%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

10.55

EV to EBIT

33.04

EV to EBITDA

28.32

EV to Capital Employed

12.95

EV to Sales

5.31

PEG Ratio

1.20

Dividend Yield

0.77%

ROCE (Latest)

36.10%

ROE (Latest)

23.30%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

25What is working for the Company

NET SALES(9M)

At Rs 10,692.52 cr has Grown at 22.95%

ROCE(HY)

Highest at 29.52%

PBDIT(Q)

Highest at Rs 733.07 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 19.40%

PBT LESS OI(Q)

Highest at Rs 613.52 cr.

PAT(9M)

Higher at Rs 1,405.11 Cr

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 1,203.32 cr

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

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