PERSISTENT - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.7
| Stock Code | PERSISTENT | Market Cap | 72,591 Cr. | Current Price | 4,603 ₹ | High / Low | 6,599 ₹ |
| Stock P/E | 46.2 | Book Value | 420 ₹ | Dividend Yield | 0.76 % | ROCE | 28.4 % |
| ROE | 20.9 % | Face Value | 5.00 ₹ | DMA 50 | 5,315 ₹ | DMA 200 | 5,622 ₹ |
| Chg in FII Hold | 1.55 % | Chg in DII Hold | -0.80 % | PAT Qtr | 452 Cr. | PAT Prev Qtr | 459 Cr. |
| RSI | 33.1 | MACD | -258 | Volume | 4,74,926 | Avg Vol 1Wk | 5,77,123 |
| Low price | 4,149 ₹ | High price | 6,599 ₹ | PEG Ratio | 2.37 | Debt to equity | 0.05 |
| 52w Index | 18.5 % | Qtr Profit Var | 38.7 % | EPS | 96.4 ₹ | Industry PE | 20.8 |
📊 PERSISTENT shows moderate-to-strong potential for swing trading. The fundamentals are solid with ROCE 28.4%, ROE 20.9%, and EPS of ₹96.4, while debt levels are negligible (0.05). Valuation is stretched (P/E 46.2 vs industry 20.8, PEG 2.37), but strong profitability supports investor interest. Technical indicators are weak: RSI at 33.1 is oversold, MACD is strongly negative, and the stock trades below both 50 DMA and 200 DMA. The optimal entry price would be near ₹4,500–₹4,550, close to support levels. If already holding, consider exiting around ₹5,300–₹5,350, where resistance from the 50 DMA is expected.
✅ Positive
- Strong fundamentals: ROCE 28.4% and ROE 20.9% indicate efficient capital use.
- Debt-to-equity ratio at 0.05 shows minimal leverage risk.
- EPS at ₹96.4 reflects consistent earnings power.
- FII holdings increased (+1.55%), showing foreign investor confidence.
- Dividend yield of 0.76% provides some passive income.
⚠️ Limitation
- High P/E (46.2) compared to industry average (20.8), suggesting overvaluation.
- PEG ratio at 2.37 indicates growth is not fully aligned with valuation.
- Stock trading below both 50 DMA (₹5,315) and 200 DMA (₹5,622), signaling bearish trend.
- DII holdings decreased (-0.80%), showing reduced domestic institutional support.
📉 Company Negative News
- Quarterly PAT declined slightly from ₹459 Cr. to ₹452 Cr.
- MACD strongly negative (-258), indicating downward momentum.
- Stock has fallen sharply from its 52-week high of ₹6,599.
📈 Company Positive News
- Quarterly profit variation (+38.7%) shows strong year-on-year growth.
- FII inflows provide institutional backing.
- Debt-free balance sheet supports long-term stability.
🏭 Industry
- Industry P/E at 20.8 is much lower than PERSISTENT’s, suggesting peers may be better valued.
- IT services and digital transformation industry has strong long-term growth potential, driven by global demand for cloud and AI solutions.
📝 Conclusion
PERSISTENT is a moderately good swing trade candidate with strong fundamentals but weak technicals and stretched valuation. Entry is advisable near ₹4,500–₹4,550, with exit around ₹5,300–₹5,350 if already holding. Long-term investors may benefit from its strong ROCE, ROE, and growth prospects, while short-term traders should wait for technical confirmation before aggressive positioning.