Kotak Securities Stock Idea: Buy Persistent Systems with Target Rs 4040
Kotak Securities recommends buying Persistent Systems at the current market price of Rs 3972, with a target price of Rs 4040. This suggests a potential upside of 1.7%. The brokerage firm is optimistic about the company's strong execution and positive order book. Persistent Systems is an IT services company that focuses on digital transformation and enterprise software solutions. The company has been consistently delivering strong financial performance and is well-positioned to benefit from the growing demand for digital services.
About Persistent Systems:
Persistent Systems is a global provider of digital services and solutions. Headquartered in Pune, India, the company has a global presence with offices in over 17 countries. Persistent specializes in providing software development, cloud computing, testing, data analytics, and product engineering services. With a workforce of over 11,000 professionals, Persistent serves Fortune 500 companies and mid-sized organizations across various industries, including financial services, healthcare, technology, manufacturing, and retail. The company's strong technical expertise and commitment to customer satisfaction have made it a trusted partner for enterprises worldwide. Persistent Systems is publicly listed on the National Stock Exchange (NSE) of India.
52 Week Price Trend:
Persistent Systems' current market price (CMP) of Rs 3972 stands significantly below its 52-week high of Rs 8979.85, indicating a substantial decline. However, it remains marginally above the 52-week low of Rs 3959.25. This suggests that the stock has been experiencing volatility and is currently trading closer to its recent lows. Investors may consider monitoring the stock's performance to determine whether it exhibits signs of recovery or continues to trend downwards.
Stratzy's MOST Analysis:
Persistent Systems has been rated as AAA by Stratzy's MOST Framework, indicating a low fundamental risk. This rating is based on the company's strong management, positive outlook, robust safety measures, and upward trend. Persistent Systems has consistently demonstrated excellence in these areas, making it a reliable investment choice.
Company's Fundamentals:
Persistent Systems (NSE:PERSISTENT) is a technology services company with a stock PE (Price-to-Earnings) ratio of 62.94. This indicates that investors are willing to pay 62.94 times the company's annual earnings per share for its stock. The PB Ratio (Price-to-Book) of 14.67 implies that investors are paying 14.67 times the company's book value per share, suggesting a premium valuation compared to its assets. Despite the high PE and PB ratios, Persistent Systems offers a low Dividend Yield of 0.47%, indicating that investors prioritize growth potential over dividend income.
Fundamental and Technical information provided in this blog were last updated on 09 Apr, 2024
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