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 40.6k Views
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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.

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