Multibagger Alert: This technology services company has given returns of 199.86% in the past year!

Multibagger Alert: This technology services company has given returns of 199.86% in the past year!

by 5paisa Research Team Last Updated: Dec 11, 2022 - 05:02 pm 40.7k Views
Listen icon

The company is well placed to capture opportunities from the accelerated shift to the cloud. 

Global software company specializing in product and technology services, Persistent Systems Limited has given investors stellar returns of 199.86% over the last year. The share price of the company stood at Rs 1514.35 on January 07, 2021, and since then, it has close to tripled investor wealth. 

Headquartered in Pune, Persistent Systems is a technology services company engaged in delivering digital business acceleration, enterprise modernization, and next-generation product engineering services. The firm operates through the segments of Banking, Financial Services & Insurance (BFSI), Healthcare & Life Sciences, and Technology Companies & Emerging Verticals. 

In Q2FY22, Persistent Systems reported revenue growth of 34% YoY and 9% QoQ to Rs 1351.25 crore. Among verticals, BFSI (+8.9%) and Healthcare (+13%) showed strong growth, helped by deal ramp-ups. PBIDT (Ex OI) was reported at Rs 224.39 crore, up 34% YoY and 11% QoQ, while the corresponding margin grew to 16.61% in Q2FY22 from 16.51% in the same period in FY21. Management sees limited room for further improvement in utilisation but expects EBITDA margins to remain steady in the 16-17% range over the near term, with a focus on growth. PAT stood at Rs 161.75 crore, up 58% YoY and 7% QoQ. 

The pandemic has accelerated the adoption of cloud technologies because of strengthening business resilience and agility provided by cloud-based services in terms of cost efficiencies, catching up with cloud-native competitors. Persistent Systems Limited (PSL) is well placed to capture opportunities from the accelerated shift to the cloud as an early identifier of digital trends and strong product development capabilities. It is expected to report strong topline growth in the medium term, backed by its strong product engineering and cloud capabilities, healthy relationships with large enterprises, strong execution, and healthy demand across its key focus verticals. 

At 3 pm on Monday, the stock of Persistent Systems Limited was trading at Rs 4497.35, down by 0.96% or Rs 43.65 per share on BSE. The 52-week high of the scrip is recorded at Rs 4,986.85 and the 52-week low at Rs 1,482.05 on the BSE.

Share Market Today


How do you rate this article?

Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage

378X91-D3

About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.


Enjoy 0%* Brokerage with 5paisa
Resend OTP
Please Enter OTP
Mobile No. belongs to

By proceeding, you agree to the T&C.

Latest News
Trust Fintech IPO Subscribed 108.63 times

Trust Fintech IPO is book-built issue of ₹63.45 crores, consisting entirely of fresh issue shares totalling 62.82 lakh. Trust Fintech IPO commenced its subscription period on March 26, 2024, & concludes today, March 28, 2024.

Aspire & Innovative IPO Subscribed 15.17 times

Aspire & Innovative IPO is a book built issue of Rs 21.97 crores. The issue comprises entirely a fresh issue of 40.68 lakh shares. Aspire & Innovative IPO opens for subscription on March 26, 2024, and closes on March 28, 2024. The allotment for the Aspire & Innovative IPO is expected to be finalized on Monday, April 1, 2024.

Blue Pebble IPO Subscribed 56.32 times

Blue Pebble IPO, valued at ₹18.14 crores, comprises fresh issue of 10.8 lakh shares. Commencing subscription on March 26, 2024, Blue Pebble IPO is set to conclude on March 28, 2024. Allotment process is scheduled to be finalized by Monday, April 1, 2024. Following this, IPO is slated to debut on NSE SME, with tentative listing date of Wednesday, April 3, 2024.