Sharekhan has given Buy recommendation for Persistent Systems with a target price of Rs. 1770 in its research report issued on Jan 29, 2021
Sharekhan’s research report on Persistent Systems
Q3 numbers beat estimates on all fronts, along with strong headcount addition, healthy collections and robust deal bookings; strong hiring indicates ramp-up of large deals and improving demand. TSU segment would continue growth momentum on strong deal wins, robust deal pipeline and higher adoption of new-age technologies. Management expects strong revenue growth in Alliance business from Q1FY2022E. We expect USD revenue/earnings to clock a CAGR of 14%/22% over FY2021-FY23E, led by ramp-up of deal wins, a healthy deal pipeline, a wider relationship with IBM & a rise in margins expansion.
Outlook
We retain a Buy on Persistent Systems Limited (PSL) with a revised PT of Rs. 1,770, as we expect strong earnings growth over FY2021-23E.
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