Check Before You Invest : Persistent Systems Ltd

Q: Which industry/sub-sector does Persistent Systems Ltd belong to?

Persistent Systems Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q: Is Persistent Systems Ltd a good quality company?

Persistent Systems Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Persistent Systems Ltd undervalued or overvalued?

Persistent Systems Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 42.45, Historic Median: 51.00. Price to Book, Current: 10.1, Historic Median: 11.88. Price to Sales, Current: 5.37, Historic Median: 6.35. EV to EBITDA, Current: 26.2, Historic Median: 32.93

Q: Is Persistent Systems Ltd a good buy now?

Persistent Systems Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Persistent Systems Ltd?

Persistent Systems Ltd revenue growth is 21.6% for FY-2025, which is below its 5-year CAGR of 27.34%, indicating slower growth.

Q: Gross Profit margin of Persistent Systems Ltd?

Persistent Systems Ltd Gross profit margin which is the profit after deduction of direct costs, is 17.8% for FY-2025, which is in line with its 5-year median of 18.5%, indicating stable margins.

Q: Operating Profit Margin of Persistent Systems Ltd?

Persistent Systems Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 16.02% for FY-2025, which is in line with its 5-year median of 16.35% indicating stable margins.

Q: Net Profit Margin of Persistent Systems Ltd?

Persistent Systems Ltd Net Profit Margin is 11.73% for FY-2025, is above its 5-year median of 11.13%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 17.8, Historic Median: 18.5. Operating Profit Margin (%), Current: 16.02, Historic Median: 16.35. Net Profit Margin (%), Current: 11.73, Historic Median: 11.13

Q: Return on Asset of Persistent Systems Ltd?

Persistent Systems Ltd Return on Asset is 17.72%, which is above its 5-year historical median of 15.57%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Persistent Systems Ltd?

Persistent Systems Ltd Return on capital employed is 32.91% for FY-2025, which is above its 5-year historical median of 31.26%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Check Before You Invest : Persistent Systems Ltd

Snapshot

Q.1 Which industry/sub-sector does Persistent Systems Ltd belong to?

Persistent Systems Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q.2 Is Persistent Systems Ltd a good quality company?

Persistent Systems Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Persistent Systems Ltd undervalued or overvalued?

Persistent Systems Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	42.45	51.00
Price to Book	10.1	11.88
Price to Sales	5.37	6.35
EV to EBITDA	26.2	32.93

Q.4 Is Persistent Systems Ltd a good buy now?

Persistent Systems Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Persistent Systems Ltd?

Persistent Systems Ltd revenue growth is 21.6% for FY-2025, which is below its 5-year CAGR of 27.34%, indicating slower growth.

Q.2 Gross Profit margin of Persistent Systems Ltd?

Persistent Systems Ltd Gross profit margin which is the profit after deduction of direct costs, is 17.8% for FY-2025, which is in line with its 5-year median of 18.5%, indicating stable margins.

Q.3 Operating Profit Margin of Persistent Systems Ltd?

Persistent Systems Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 16.02% for FY-2025, which is in line with its 5-year median of 16.35% indicating stable margins.

Q.4 Net Profit Margin of Persistent Systems Ltd?

Persistent Systems Ltd Net Profit Margin is 11.73% for FY-2025, is above its 5-year median of 11.13%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	17.8	18.5
Operating Profit Margin (%)	16.02	16.35
Net Profit Margin (%)	11.73	11.13

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Persistent Systems Ltd?

Persistent Systems Ltd Return on Asset is 17.72%, which is above its 5-year historical median of 15.57%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Persistent Systems Ltd?

Persistent Systems Ltd Return on capital employed is 32.91% for FY-2025, which is above its 5-year historical median of 31.26%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.7 Return on Equity (ROE) of Persistent Systems Ltd?

Persistent Systems Ltd Return on equity is 26.22% for FY-2025, which is in line with its 5-year historical median of 25.86%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Persistent Systems Ltd?

Persistent Systems Ltd Cash conversion cycle is 20 days, below its 5-year historical median of 23 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	1.51	1.41
ROE (%)	26.22	25.86
ROCE (%)	32.91	31.26
Cash Conversion Cycle	20 days	23 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Persistent Systems Ltd?

Persistent Systems Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.01, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Persistent Systems Ltd?

Persistent Systems Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Persistent Systems Ltd?

Q.1 Promoter shareholding and pledge status of Persistent Systems Ltd?

Promoters hold 30.29% of the Persistent Systems Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Persistent Systems Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Persistent Systems Ltd vs industry peers?

Persistent Systems Ltd revenue CAGR is 27.34%, compared to the industry median CAGR of 19.32%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	21.6	19.3
Gross Profit Growth (%)	21.2	12.5
Operating Profit Growth (%)	19.4	14.2
Net Profit Growth (%)	28.1	11.6

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.51	1.22
ROE (%)	26.22	25.84
ROCE (%)	32.91	32.8
Cash Conversion Cycle (days)	19.56	31

Valuation & price assessment

Q.1 Stock return of Persistent Systems Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 30.1% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	30.1%	33.2%	25.8%	-10.1%

Q.2 Valuation ratios of Persistent Systems Ltd vs historical?

The current P/E ratio of 42.45 is lower than its historical median of 51.00, indicating that the stock is trading below its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	42.45	51.00	47.38
Price to Book	10.1	11.88	2.64
Price to Sales	5.37	6.35	4.79
EV to EBITDA	26.2	32.93	16.75

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Check Before You Invest : Persistent Systems Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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