PERSISTENT - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Investment Rating: 4.2

📊 Fundamental & Valuation Analysis

Metric Value Interpretation

Market Cap ₹80,971 Cr Large-cap IT player

P/E Ratio 53.3 Overvalued vs industry PE of 30.2

PEG Ratio 1.96

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Fairly valued for growth

ROE 24.72%

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Excellent shareholder return

ROCE 26.46%

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Strong capital efficiency

Dividend Yield 0.68%

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Low but consistent

Debt to Equity 0.05

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Very low debt, solid balance sheet

📈 Price Trends & Technicals

Indicator Value Signal

Current Price ₹5,176 Near support zone

52W High/Low ₹6,789 / ₹4,149 23% below high

DMA 50 / 200 ₹5,640 / ₹5,474 Trading below both — bearish

RSI 30.2 Oversold zone — potential rebound

MACD -160 Bearish momentum

Volume Below average Weak participation

🎯 Ideal Entry Price Zone

Given the oversold RSI and bearish MACD, the ideal entry zone is ₹4,600–₹4,900, which aligns with technical support and offers a better valuation cushion.

🧭 Holding or Exit Strategy

If you already hold Persistent Systems

Holding Period: Minimum 3–5 years to benefit from digital transformation and GenAI growth.

Exit Strategy

Partial exit near ₹6,300–₹6,500 (resistance zone)

Hold if PEG stays <2 and ROE >20%

Exit fully if growth slows or valuation exceeds PEG >2.5

✅ Long-Term Investment Verdict

Pros

Strong ROE/ROCE and consistent profit growth

Low debt and high cash reserves

PEG ratio supports growth valuation

Positioned well in GenAI and BFSI segments

Cons

Rich valuation (P/E > 50)

Low dividend yield

Recent price correction and bearish technicals

Conclusion: Persistent Systems is a strong long-term candidate in the IT space. Accumulate on dips for superior compounding returns.

Would you like a peer comparison with Infosys, HCL Tech, or Coforge?

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