KR Choksey is bullish on Persistent Systems has recommended buy rating on the stock with a target price of Rs 1084 in its research report dated April 25, 2018.
KR Choksey's research report on Persistent Systems
Persistent reported Q4 FY18 results which were below our estimates on the revenue as well as on the profitability front due to de-growth in IP-Led revenue, thereon affected its Alliance revenue by (-21.6% qoq) In US$ terms, the company reported revenues of US$ 117 Mn (-4.8% qoq). IP-led revenues contributed 22.3% to the top-line, de-grew by 20.6% qoq/13.3% yoy and Enterprise business (37.1% to revenue), grew by +2.0% qoq /+30.5% yoy
Outlook
At a CMP of 770, the company is trading at a P/E of 14.6x/11.8x in FY19E/FY20E respectively. We recommend a BUY rating to the stock and assign a multiple of 16.6x to its FY20E EPS of INR 65.3 to come up at a target price of 1084, an upside of 41% compared to CMP.For all recommendations report, click here
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