PERSISTENT - Fundamental Analysis
Last Updated Time : 02 Aug 25, 12:58 am
Back to Fundamental List📊 Fundamental Stock Analysis: Persistent Systems Ltd (PERSISTENT) Rating: 4.3
💼 Core Financials Overview
Profit Growth & Stability
PAT increased from ₹396 Cr to ₹425 Cr — a strong 7.3% quarterly growth, supporting consistent performance.
EPS of ₹97.9 is solid and reflects earnings strength.
Return Metrics
ROE: 24.1% and ROCE: 30.4% — excellent returns, indicating high efficiency and profitability.
Debt-to-equity ratio of 0.05 — indicates a near debt-free structure and strong financial positioning.
Dividend Yield: 0.68% — while modest, it supports long-term shareholder value.
💰 Valuation Snapshot
Metric Value Interpretation
P/E Ratio 53.3 High vs. Industry PE (29.1); priced for growth
P/B Ratio ~12.65 Market values future earnings aggressively
PEG Ratio 1.97 Slightly high; growth priced in
Intrinsic Value ⏳ Not disclosed Cannot determine fundamental undervaluation
RSI at 30.2 → stock appears oversold, suggesting technical bottoming.
MACD negative (-160) → confirms bearish trend but also may hint reversal incoming.
Current price ₹5,176 is below DMA50 (₹5,640) and DMA200 (₹5,474) — technically weak but attractive for accumulation.
🧠 Business Model & Competitive Edge
Segment Focus: IT Services, Digital Transformation, Cloud, and AI — all high-growth verticals aligned with global demand.
Differentiators
Strong innovation engine and IP-led solutions.
High-quality client base and deep engagements in BFSI, healthcare, and emerging tech.
Stellar margins and return ratios suggest efficient cost and talent management.
📌 Investment Insights
Suggested Entry Zone: ₹4,900–₹5,150 — close to current price and aligned with RSI signal, offering potential upside with limited technical downside.
Long-Term Holding View
Excellent financial discipline and returns profile.
Attractive in digital-first economy tailwinds.
Risk: Valuation multiples are stretched — monitor margin pressures and global IT spending cycles.
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