Persistent Systems gains on upbeat brokerage rating

Persistent Systems rose 1.85% to Rs 5638.20 after a foreign broker issued an 'outperform' rating on the stock with a target price of Rs 7,200 per share.

The brokerage's optimistic outlook is fueled by projections of robust growth, positioning Persistent Systems as the fastest-growing company within its coverage. The firm forecasts a substantial 21% increase in revenue and a 29% compound annual growth rate (CAGR) in earnings over the fiscal years 2025-27.

The brokerage further emphasized the company's strong management, which has effectively navigated the current challenging macroeconomic environment. They highlighted the recent dip in the stock's value as a prime buying opportunity. Additionally, the broker predicts potential margin expansion through strategic reductions in subcontracting costs and improved operating leverage, solidifying Persistent Systems' standing as a strong contender for consistent, long-term growth within the technology sector.

Persistent Systems is a global services and solutions company delivering digital engineering and enterprise modernization to businesses across industries.

The company's consolidated net profit jumped 14.8% to Rs 372.99 crore while revenue from operations increased 5.7% to Rs 3,062.28 crore in Q3 FY25 over Q2 FY25.

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