Buy Persistent Systems, target price Rs 4090: Kotak Securities

Kotak Securities has buy call on Persistent Systems with a target price of Rs 4090. The current market price of Persistent Systems is Rs 3971.8. Kotak Securities Limited recommended to keep stop loss at Rs 3920.

Persistent Systems, incorporated in the year 1990, is a Mid Cap company (having a market cap of Rs 30403.39 Crore) operating in IT Software sector.

Persistent Systems key Products/Revenue Segments include Software Services and Software Licence for the year ending 31-Mar-2022.

Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 2056.70 Crore, up 8.30 % from last quarter Total Income of Rs 1899.09 Crore and up 48.64 % from last year same quarter Total Income of Rs 1383.66 Crore. Company has reported net profit after tax of Rs 220.01 Crore in latest quarter.

The company’s top management includes Dr.Anand Deshpande, Dr.Ambuj Goyal, Mr.Arvind Goel, Ms.Avani Davda, Prof.Deepak Phatak, Mr.Praveen Kadle, Dr.Anant Jhingran, Ms.Roshini Bakshi, Mr.Sunil Sapre, Mr.Sandeep Kalra, Mr.Dan�l Lewin. Company has Walker Chandiok & Co. LLP as its auditors. As on 30-09-2022, the company has a total of 8 Crore shares outstanding.

Investment Rationale
Counter is trading in a triangle formation near short-term moving averages & breakout possible.

Promoter/FII Holdings
Promoters held 31.26 per cent stake in the company as of 30-Sep-2022, while FIIs owned 20.45 per cent, DIIs 25.92 per cent.