ICICI Securities has 'Buy' on multibagger stock that has rallied over 164% in a year
Premium- The brokerage firm has given Buy rating to multibagger stock that has rallied over 164% in a year's period
Persistent System (Persistent) offers cloud, data, product & design led services to BFSI, Healthcare & Hi Tech verticals. The IT company has shown a healthy turnaround in dollar revenue growth of 13% on a year-on-year basis in FY21 and margin expansion of 248 bps, highlighted brokerage house ICICI Securities.
Persistent’s share price has grown by around 7.5x over the past five years, from around ₹570 in January 2017 to around ₹4,300 levels in January 2022. The brokerage has assigned a Buy rating on the multibagger stock, from Hold earlier on continued strong growth. It has a target price of ₹4,985 with a target period of twelve months.
The company is looking to reach $1 billion annual revenue in six to eight quarters from now and looking at EBITDA margin expansion of 16-17%, while a further 100-150 bps margin improvement is expected. Strong deal win momentum will help improve its revenue growth, which could act as key triggers for future stock price performance, as per the brokerage. The company is net debt free and has healthy double digit return ratio.
Shares of Peristent Systems have given multibagger return of over 164% in a year's period whereas the IT stock is up around 25% in the last six months, though down 16% in 2022 (year-to-date or YTD) so far.
Apart from Persistent, in its IT coverage, ICICI Securities also likes Larsen & Toubro Infotech (LTI) as it believes industry leading growth and healthy margins prompt us to be positive on the stock. Its Buy rating on LTI comes with a target price of ₹8,050 apiece.
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The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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