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

Coforge

Inventurus Knowl

Infosys

LTM

L&T Technology

Persistent Syste

HCL Technologies

Hexaware Tech.

Wipro

Tech Mahindra

Mphasis

Why is Persistent Systems Ltd ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 22.63%

Healthy long term growth as Net Sales has grown by an annual rate of 28.85% and Operating profit at 33.85%
The company is Net-Debt Free

The company has declared Positive results for the last 10 consecutive quarters

PAT(Latest six months) At Rs 1,012.30 cr has Grown at 23.35%
ROCE(HY) Highest at 30.94%
NET SALES(Q) Highest at Rs 4,303.23 cr

With ROE of 24.7, it has a Very Expensive valuation with a 11 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 5.65%, its profits have risen by 31.2% ; the PEG ratio of the company is 1.4

High Institutional Holdings at 51.03%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Returns over the last 3 years

Along with generating 5.65% returns in the last 1 year, the stock has outperformed BSE500 in each of the last 3 annual periods

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, Medium Return

Absolute

Risk Adjusted

Volatility

Persistent Syste

5.65%

0.16

34.57%

Sensex

-2.63%

-0.19

13.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

28.85%

EBIT Growth (5y)

33.85%

EBIT to Interest (avg)

32.35

Debt to EBITDA (avg)

0.32

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

1.71

Tax Ratio

22.42%

Dividend Payout Ratio

38.96%

Pledged Shares

Institutional Holding

51.03%

ROCE (avg)

33.98%

ROE (avg)

22.63%

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

11.02

EV to EBIT

34.49

EV to EBITDA

29.41

EV to Capital Employed

13.70

EV to Sales

5.39

PEG Ratio

1.44

Dividend Yield

0.73%

ROCE (Latest)

38.70%

ROE (Latest)

24.68%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

OBV

Mildly Bullish

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

14What is working for the Company

PAT(Latest six months)

At Rs 1,012.30 cr has Grown at 23.35%

ROCE(HY)

Highest at 30.94%

NET SALES(Q)

Highest at Rs 4,303.23 cr

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 1,218.25 cr

DEBTORS TURNOVER RATIO(HY)

Highest at 6.91 times

-2What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Loading Valuation Snapshot...

Here's what is working for Persistent Syste

Net Sales - Quarterly

Highest at Rs 4,303.23 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Profit After Tax (PAT) - Latest six months

At Rs 1,012.30 cr has Grown at 23.35%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 1,218.25 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio- Half Yearly

Highest at 6.91 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Persistent Syste

Non Operating Income - Quarterly

Highest at Rs 70.64 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income