Accumulate Persistent Systems; target of Rs 6550: Prabhudas Lilladher
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Prabhudas Lilladher downgraded Persistent Systems to accumulate with a target price of Rs 6550.
- ✓The firm reported 7.8% revenue growth, helped by a large USD 650m deal.
- ✓While margins fell due to wage hikes, management said they expect improvement.
Story at a Glance
- Category
- BUSINESS
- Reported By
- MoneyControl
- Reading Speed
- 2 Minute(s)
- Market Focus
- India Economy
Prabhudas Lilladher's research report on Persistent Systems PSYS reported revenue growth of 7.8% QoQ CC (vs. our estimate of 7.6%), aided by healthy growth within BFS and Hi-Tech verticals, attributed to a ramp-up of the large deal (USD650m). Healthcare growth was weak on account of underlying macro challenges in US payer segment. The weakness in deal TCV/ACV (+4.0%/+7.4% YoY) was a little disappointing, primary attributed to a slower decision-making and deferred deal closure, which is likely to get recovered in Q3.
Otherwise TTM TCV/ACV reported a growth of 36.3%/22.0% YoY. EBIT margin of 15.0% missed our estimate by 60 bps QoQ, primarily due to wage hike impact (140bps QoQ) and incremental investments in licensing and software tools (+32% QoQ). The management was confident of achieving 16-17% EBIT margin for FY27E.
Unlock the Full Story with ArthNow Premium
To continue reading this complete financial story and in-depth market context, upgrade to ArthNow Premium. Enjoy unlimited access across Web and Mobile.
MoneyControl
Read the full, original unfiltered story directly on the publisher's portal.