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INVESTMENT INSIGHTS

Check Before You Invest : Persistent Systems Ltd

BSE: 533179 NSE: PERSISTENT ISIN: INE262H01021
  |   Sector:  IT & ITES   |   Industry:  IT - Software

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 10 year financial track record.
Q.3 Is Persistent Systems Ltd undervalued or overvalued?
Persistent Systems Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
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

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 27.3% , 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 below its 5 year median of 18.5% , indicating decreasing 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 below its 5 year median of 16.35% indicating decreasing margins.
Q.4 Net Profit Margin of Persistent Systems Ltd?
Persistent Systems Ltd Net Profit Margin is 11.73% for FY-2025 , is above with its 5 year median of 11.13%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 17.8 18.5
Operating Profit Margin 16.02 16.35
Net Profit Margin 11.73 11.13
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 Equity (ROE) of Persistent Systems Ltd?
Persistent Systems Ltd Return on equity is 26.22% for FY-2025 , which is above its historical median of 25.86%, indicating the business is making better use of its shareholders capital.
Q.7 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 estimated weighted average cost of capital(WACC) 11.25%, indicating value creation.
Q.8 Cash conversion cycle of Persistent Systems Ltd?
Persistent Systems Ltd Cash conversion cycle is 20 days, below its historical median of 23 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.51 1.41
ROE 26.22 25.86
ROCE 32.91 31.26
Cash Conversion Cycle 20 days 23 days
Q.9 Debt to Equity ratio of Persistent Systems Ltd?
Persistent Systems Ltd Debt-to-Equity ratio is 0.00 , which is lower with the industry average of 0.04 , 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

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)

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 19.31% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 11,938.7 8,415.1
Gross Profit 2,125.1 2,014.1
Operating Profit 1,912 1,882.5
Net Profit 1,400 1,238
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.51 1.26
ROE 26.22 26.06
ROCE 32.91 33.58
Cash Conversion Cycle (days) 19.56 36

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 30.5% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 30.5% 41.1% 35.4% 8.9%
Q.3 Valuation ratios of Persistent Systems Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 48.49 21.71 22.96
Price to Book 11.07 3.02 2.61
Price to Sales 6.03 2.03 4.40
EV to EBITDA 29.8 11.07 17.20

Check more companies

1. Persistent Systems
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3. Mphasis
4. Coforge
5. L&T Technology Serv.
6. Hexaware Tech.
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