Centrum initiates coverage on India's Persistent Systems with 'buy'

Persistent Systems

01/07/2025 09:46

** Centrum initiates coverage on Indian IT services provider Persistent Systems PERS.NS with 'buy'; sets PT at 7,245 rupees

** PT implies upside of ~21% to current stock price of 5,997 rupees; PERS flat on the day

** Centrum says, PERS' 4-year revenue CAGR of 25.6% from FY21-FY25 significantly outpaces industry averages

** Adds, recent deal wins provide strong revenue and operating margin growth visibility, while sales mix remains well-diversified

** Co's strategic positioning at the forefront of the generative AI wave should drive accelerated deal flow and strengthen client partnerships- Centrum

** According to LSEG data, PERS rated 'hold' on avg by 32 analysts; median PT at 5,620 rupees - implying a downside of 6.3%

 (Reporting by Ananta Agarwal in Bengaluru)

 ((Ananta.Agarwal@thomsonreuters.com))