Nalanda Securities is bullish on Persistent Systems recommended buy rating on the stock with a target price of Rs 715 in its research report dated April 30, 2019.
Nalanda Securities' research report on Persistent Systems
Persistent Systems Ltd. (PSYS) reported Q4 FY19 net revenue at INR 8319 mn; down 4% QoQ and up 10% YoY. EBITDA reported by the company stood at INR 1207 Mn; down 17% QoQ and up 11% YoY. EBITDA margin during the quarter was 14.5% as against 17% QoQ and unchanged YoY. Profit reported by the company stood at INR 845 Mn; down 8% QoQ and up 14% YoY. PAT margin during the quarter was 10.2% as against 11% QoQ and 9.9% YoY. The company board has recommended a final dividend of INR 3/equity share.
Outlook
At CMP of INR 635, the company is trading at P/E multiple of 11.1x FY21E EPS. We value the company using P.E. multiple methodology. We have given an exit multiple of 12.5x to arrive at a target price of INR 715 which is an upside of 12.5%.
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