HDFC Securities is bullish on Persistent Systems has recommended buy rating on the stock with a target price of Rs 840 in its research report dated April 25, 2018.
HDFC Securities' research report on Persistent Systems
Persistent posted rev decline (in-line) and margin contraction with lower IP revenue. Revenue stood at USD 117mn, -4.6%/+7.3% QoQ/YoY impacted by USD 6.8mn sequential decline in IP revenue (22.3% of 4Q rev). Services (46% of rev) and Digital (24% of rev) posted strong growth of 3.6% QoQ and 4.1% QoQ, respectively, while Accelerite (6% of rev) and Alliance business (24% of rev) declined.
Outlook
Factored revenue/EPS growth of 10/14% CAGR over FY18-20E, based on revenue growth at 8.4/12.4% and EBITDA% at 16.2/17.0% for FY19/20E, respectively. Maintain BUY with TP of Rs 840, at 16x FY20E EPS.For all recommendations report, click here
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