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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 533179 | NSE: PERSISTENT

Persistent Systems Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 9:39 pm

Market Cap 89,330 Cr.
Current Price 5,726
High / Low5,834/3,135
Stock P/E72.5
Book Value 360
Dividend Yield0.45 %
ROCE29.2 %
ROE24.0 %
Face Value 5.00
PEG Ratio3.47

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Persistent Systems Ltd

Competitors of Persistent Systems Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
IDream Film Infrastructure Company Ltd 1.41 Cr. 93.899.0/85.0 2950.00 %%% 10.0
IB Infotech Enterprises Ltd 23.4 Cr. 182245/11030.7 16.80.55 %69.9 %50.5 % 10.0
Hit Kit Global Solutions Ltd 6.54 Cr. 1.411.41/0.5820.4 2.080.00 %1.92 %1.94 % 2.00
Globalspace Technologies Ltd 59.5 Cr. 17.327.0/16.2180 11.20.00 %%% 10.0
First Fintec Ltd 8.64 Cr. 8.3010.9/4.51 10.20.00 %2.41 %1.77 % 10.0
Industry Average39,977.65 Cr703.7691.08122.740.67%18.02%18.80%6.94

All Competitor Stocks of Persistent Systems Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales1,2301,3511,4921,6381,8782,0492,1692,2542,3212,4122,4982,5912,737
Expenses1,0281,1271,2411,3571,5451,6811,7681,8381,9472,0072,0562,1362,282
Operating Profit202224251281333368402416374405442454455
OPM %16%17%17%17%18%18%19%18%16%17%18%18%17%
Other Income39323142218392237383131
Interest223581114151312121014
Depreciation35374351656968707674798071
Profit before tax203218236267282296323341307356389395401
Tax %26%26%25%25%25%26%26%26%25%26%26%20%24%
Net Profit151162176201212220238252229263286315306
EPS in Rs9.8910.5811.5413.1513.8414.3915.5616.4514.8617.1118.5920.4719.89

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales1,2951,6691,8912,3122,8783,0343,3663,5664,1885,7118,3519,82210,238
Expenses9821,2551,5011,9212,4132,5652,8103,0733,5054,7536,8318,1468,481
Operating Profit3134153903924654695564936839581,5191,6761,757
OPM %24%25%21%17%16%15%17%14%16%17%18%17%17%
Other Income29319477841198813210814441128137
Interest00000006612474748
Depreciation781039499149158157166176166272309304
Profit before tax2633433903704014294864526099241,2411,4481,541
Tax %29%27%25%25%25%25%28%25%26%25%26%24%
Net Profit1882492912773013233523404516909211,0931,171
EPS in Rs11.7315.5818.1617.3318.8420.1921.9822.2629.4845.1560.2470.9876.06
Dividend Payout %19%19%41%23%24%25%25%27%34%34%41%37%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)32.45%16.87%-4.81%8.66%7.31%8.98%-3.41%32.65%52.99%33.48%18.68%
Change in YoY Net Profit Growth (%)0.00%-15.58%-21.68%13.48%-1.36%1.67%-12.39%36.06%20.35%-19.52%-14.80%

Persistent Systems Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:19%
5 Years:24%
3 Years:33%
TTM:17%
Compounded Profit Growth
10 Years:16%
5 Years:27%
3 Years:36%
TTM:23%
Stock Price CAGR
10 Years:32%
5 Years:76%
3 Years:41%
1 Year:74%
Return on Equity
10 Years:20%
5 Years:21%
3 Years:24%
Last Year:24%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:54 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital40408080808079767676767778
Reserves9781,1821,3261,5781,8192,0472,2662,3092,7193,2923,8894,8815,486
Borrowings13433227198578658451577
Other Liabilities2473183654594335145096357711,4732,0501,9632,138
Total Liabilities1,2671,5431,7752,1202,3352,6442,8563,0923,6665,4196,6737,3728,279
Fixed Assets3504084084375365124014324571,5342,3412,2212,437
CWIP11731427295323012107163415
Investments3294896746386848807649791,000822640827804
Other Assets4716156891,0181,0861,2471,6591,6522,1972,9563,6764,2905,023
Total Assets1,2671,5431,7752,1202,3352,6442,8563,0923,6665,4196,6737,3728,279

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +2162813122542864214323527368459561,221
Cash from Investing Activity +-171-198-230-86-222-337-233-6-540-971-383-432
Cash from Financing Activity +-39-50-66-127-58-96-160-329-144182-404-594
Net Cash Flow73316416-1239165256169196

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow312.00412.00386.00389.00462.00467.00554.00422.00585.00380.00-657.00-450.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days696669676058536150616762
Inventory Days
Days Payable
Cash Conversion Cycle696669676058536150616762
Working Capital Days39342940495343372762834
ROCE %28%30%29%23%23%20%20%18%22%26%30%29%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters31.26%31.26%31.26%31.26%31.26%31.26%31.06%31.06%31.06%31.02%31.02%30.66%
FIIs19.92%20.03%20.45%19.81%20.29%20.55%20.50%21.34%24.55%24.96%22.55%23.34%
DIIs26.88%26.76%25.94%25.92%26.40%27.60%28.04%28.67%26.13%25.88%28.23%27.37%
Public18.71%18.81%19.51%20.44%19.76%18.52%17.99%16.96%16.91%17.03%17.51%16.96%
Others3.23%3.14%2.83%2.56%2.27%2.07%2.41%1.97%1.34%1.12%0.69%1.67%
No. of Shareholders1,51,6101,71,8751,93,0242,14,0912,00,7201,82,3991,87,0821,82,1931,85,7281,89,5702,30,0632,28,534

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Kotak Emerging Equity Fund - Regular Plan3,920,5123.391662.87749,1922024-11-20423.3%
HDFC Mid-Cap Opportunities Fund - Regular Plan3,660,0002.21552.37749,1922024-11-20388.53%
Motilal Oswal Midcap Fund2,717,7579.131152.72749,1922024-11-20262.76%
Motilal Oswal Flexi Cap Fund2,500,0009.531060.36749,1922024-11-20233.69%
Nippon India Growth Fund1,599,3812.2678.37749,1922024-11-20113.48%
Axis Midcap Fund1,538,0752.16652.37749,1922024-11-20105.3%
UTI Flexi Cap Fund913,0401.51387.26749,1922024-11-2021.87%
ICICI Prudential Technology Fund797,3622.67338.2749,1922024-11-206.43%
Tata Digital India Fund749,1923.11317.77749,1922024-11-200%
PGIM India Midcap Opportunities Fund609,9682.34258.71749,1922024-11-20-18.58%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue5.0010.0010.0010.0010.00
Basic EPS (Rs.)72.44123.7390.3458.9744.38
Diluted EPS (Rs.)71.07120.5290.3458.9744.38
Cash EPS (Rs.)91.06156.10112.0681.9466.24
Book Value[Excl.RevalReserv]/Share (Rs.)321.82518.82440.72365.81312.17
Book Value[Incl.RevalReserv]/Share (Rs.)321.82518.82440.72365.81312.17
Revenue From Operations / Share (Rs.)637.561092.65747.24547.97466.58
PBDIT / Share (Rs.)117.09208.01144.21103.4781.73
PBIT / Share (Rs.)97.00172.44122.4980.5060.02
PBT / Share (Rs.)93.97162.36120.9479.7459.19
Net Profit / Share (Rs.)70.98120.5290.3358.9744.52
NP After MI And SOA / Share (Rs.)70.98120.5290.3358.9744.52
PBDIT Margin (%)18.3619.0319.2918.8817.51
PBIT Margin (%)15.2115.7816.3914.6912.86
PBT Margin (%)14.7314.8516.1814.5512.68
Net Profit Margin (%)11.1311.0312.0810.769.54
NP After MI And SOA Margin (%)11.1311.0312.0810.769.54
Return on Networth / Equity (%)22.0523.2320.4916.1214.26
Return on Capital Employeed (%)28.7928.2723.4421.2418.76
Return On Assets (%)14.8213.9112.7512.2911.00
Long Term Debt / Equity (X)0.000.050.080.000.00
Total Debt / Equity (X)0.040.100.120.000.00
Asset Turnover Ratio (%)1.400.990.930.770.76
Current Ratio (X)1.891.801.993.473.06
Quick Ratio (X)1.891.801.993.473.06
Dividend Payout Ratio (NP) (%)37.9832.3528.7823.7433.68
Dividend Payout Ratio (CP) (%)29.6124.9823.2017.0822.64
Earning Retention Ratio (%)62.0267.6571.2276.2666.32
Cash Earning Retention Ratio (%)70.3975.0276.8082.9277.36
Interest Coverage Ratio (X)38.6033.5893.12136.4898.65
Interest Coverage Ratio (Post Tax) (X)24.4021.0859.3378.7854.74
Enterprise Value (Cr.)60638.8334751.0435977.7713687.573758.42
EV / Net Operating Revenue (X)6.174.166.303.271.05
EV / EBITDA (X)33.6221.8632.6417.316.02
MarketCap / Net Operating Revenue (X)6.264.226.383.501.18
Retention Ratios (%)62.0167.6471.2176.2566.31
Price / BV (X)12.408.8810.825.251.76
Price / Net Operating Revenue (X)6.264.226.383.501.18
EarningsYield0.010.020.010.030.08

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Persistent Systems Ltd as of November 21, 2024 is: 6,292.19

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, Persistent Systems Ltd is Undervalued by 9.89% compared to the current share price 5,726.00

Intrinsic Value of Persistent Systems Ltd as of November 21, 2024 is: 7,605.50

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, Persistent Systems Ltd is Undervalued by 32.82% compared to the current share price 5,726.00

Last 5 Year EPS CAGR: 20.87%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 24.83%, which is a positive sign.
  2. The company has higher reserves (2,597.85 cr) compared to borrowings (188.54 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (4.00 cr) and profit (359.23 cr) over the years.
  1. The stock has a high average Working Capital Days of 34.92, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 61.92, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Persistent Systems Ltd:
    1. Net Profit Margin: 11.13%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 28.79% (Industry Average ROCE: 18.02%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 22.05% (Industry Average ROE: 18.8%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 24.4
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.89
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 72.5 (Industry average Stock P/E: 91.08)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.04
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Persistent Systems Ltd. is a Public Limited Listed company incorporated on 30/05/1990 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L72300PN1990PLC056696 and registration number is 056696. Currently Company is involved in the business activities of Computer programming, consultancy and related activities. Company’s Total Operating Revenue is Rs. 3575.48 Cr. and Equity Capital is Rs. 76.43 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Consulting & SoftwareBhageerath, No.402, Senapati Bapat Road, Pune Maharashtra 411016info@persistent.com
http://www.persistent.com
Management
NamePosition Held
Dr. Anand DeshpandeChairman & Managing Director
Mr. Sandeep KalraExecutive Director & CEO
Mr. Sunil SapreExecutive Director
Ms. Roshini BakshiIndependent Director
Mr. Praveen KadleIndependent Director
Ms. Avani DavdaIndependent Director
Mr. Arvind GoelIndependent Director
Dr. Ambuj GoyalIndependent Director
Mr. Dan�l LewinIndependent Director
Dr. Ajit RanadeIndependent Director
Ms. Anjali JoshiIndependent Director

FAQ

What is the latest intrinsic value of Persistent Systems Ltd?

The latest intrinsic value of Persistent Systems Ltd as on 21 November 2024 is ₹6292.19, which is 9.89% higher than the current market price of ₹5,726.00.

What is the Market Cap of Persistent Systems Ltd?

The Market Cap of Persistent Systems Ltd is 89,330 Cr..

What is the current Stock Price of Persistent Systems Ltd as on 21 November 2024?

The current stock price of Persistent Systems Ltd as on 21 November 2024 is ₹5,726.

What is the High / Low of Persistent Systems Ltd stocks in FY 2024?

In FY 2024, the High / Low of Persistent Systems Ltd stocks is 5,834/3,135.

What is the Stock P/E of Persistent Systems Ltd?

The Stock P/E of Persistent Systems Ltd is 72.5.

What is the Book Value of Persistent Systems Ltd?

The Book Value of Persistent Systems Ltd is 360.

What is the Dividend Yield of Persistent Systems Ltd?

The Dividend Yield of Persistent Systems Ltd is 0.45 %.

What is the ROCE of Persistent Systems Ltd?

The ROCE of Persistent Systems Ltd is 29.2 %.

What is the ROE of Persistent Systems Ltd?

The ROE of Persistent Systems Ltd is 24.0 %.

What is the Face Value of Persistent Systems Ltd?

The Face Value of Persistent Systems Ltd is 5.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Persistent Systems Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE