Persistent Systems share price: Buy Persistent Systems, target price Rs 3700: Emkay Global

Emkay Global has buy call on with a target price of Rs 3700. The current market price of Persistent Systems is Rs 3566.05.

Time period given by analyst is one year when Persistent Systems Ltd. price can reach defined target.

Persistent Systems Ltd., incorporated in the year 1990, is a Mid Cap company (having a market cap of Rs 26911.54 Crore) operating in IT Software sector.

Persistent Systems Ltd. key Products/Revenue Segments include Software Services and Software Licence for the year ending 31-Mar-2021.

Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 1268.73 Crore, up 10.00 % from last quarter Total Income of Rs 1153.39 Crore and up 25.29 % from last year same quarter Total Income of Rs 1012.61 Crore. Company reported net profit after tax of Rs 151.25 Crore in latest quarter.

Investment Rationale
The brokerage expects PSYS to lead the pack in terms of organic revenue growth. A strong earnings trajectory (27.4% EPS CAGR over FY21-24E) and healthy cash generation should help to sustain higher valuations. The brokerage retains Buy with a TP (Sep’22E) of Rs 3,700 at 33x Sep’23E EPS.

Promoter/FII Holdings
Promoters held 31.3 per cent stake in the company as of June 30, 2021, while FIIs held 19.4 per cent, DIIs 29.2 per cent and public and others 20.1 per cent.

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