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Last Updated on: 23 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Persistent Systems Ltd

Basic Stock Data

Last Updated: June 22, 2024, 10:29 pm

Market Cap 60,764 Cr.
Current Price 3,944
High / Low4,490/2,317
Stock P/E56.8
Book Value 322
Dividend Yield0.66 %
ROCE29.2 %
ROE24.0 %
Face Value 5.00
PEG Ratio2.18

Competitors of Persistent Systems Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
California Software Company Ltd 26.4 Cr. 17.123.2/12.042.6 7.900.00 %4.42 %5.21 % 10.0
Coforge Ltd 34,691 Cr. 5,2026,847/4,28743.4 5871.46 %28.3 %23.8 % 10.0
Continental Chemicals Ltd 16.9 Cr. 75.087.1/56.232.4 20.40.00 %14.7 %12.0 % 10.0
Melstar Information Technologies Ltd 7.00 Cr. 4.906.30/1.85 2.770.00 %177 %% 10.0
Alphalogic Techsys Ltd 1,300 Cr. 277401/32.6314 8.480.00 %17.1 %12.3 % 5.00
Industry Average37,043.79 Cr680.8564.81122.680.72%20.19%19.76%6.81

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales1,1131,2301,3511,4921,6381,8782,0492,1692,2542,3212,4122,4982,591
Expenses9251,0281,1271,2411,3571,5451,6811,7681,8381,9472,0072,0562,136
Operating Profit188202224251281333368402416374405442454
OPM %17%16%17%17%17%18%18%19%18%16%17%18%18%
Other Income40393231422183922373831
Interest22235811141513121210
Depreciation42353743516569687076747980
Profit before tax185203218236267282296323341307356389395
Tax %25%26%26%25%25%25%26%26%26%25%26%26%20%
Net Profit138151162176201212220238252229263286315
EPS in Rs9.019.8910.5811.5413.1513.8414.3915.5616.4514.8617.1118.5920.47

Last Updated: June 11, 2024, 3:12 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 26, 2024, 9:43 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales1,2951,6691,8912,3122,8783,0343,3663,5664,1885,7118,3519,822
Expenses9821,2551,5011,9212,4132,5652,8103,0733,5054,7536,8318,146
Operating Profit3134153903924654695564936839581,5191,676
OPM %24%25%21%17%16%15%17%14%16%17%18%17%
Other Income29319477841198813210814441128
Interest000000066124747
Depreciation781039499149158157166176166272309
Profit before tax2633433903704014294864526099241,2411,448
Tax %29%27%25%25%25%25%28%25%26%25%26%24%
Net Profit1882492912773013233523404516909211,093
EPS in Rs11.7315.5818.1617.3318.8420.1921.9822.2629.4845.1560.2470.98
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%

Growth

Compounded Sales Growth
10 Years:19%
5 Years:24%
3 Years:33%
TTM:18%
Compounded Profit Growth
10 Years:16%
5 Years:27%
3 Years:37%
TTM:18%
Stock Price CAGR
10 Years:29%
5 Years:63%
3 Years:40%
1 Year:31%
Return on Equity
10 Years:20%
5 Years:21%
3 Years:24%
Last Year:25%

Last Updated: June 2, 2024, 12:48 pm

Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital40404080808080797676767677
Reserves8019781,1821,3261,5781,8192,0472,2662,3092,7193,2923,8894,342
Borrowings113433227198578655555
Other Liabilities1802473183654594335145096357711,4731,9991,870
Total Liabilities1,0211,2671,5431,7752,1202,3352,6442,8563,0923,6665,4196,6196,844
Fixed Assets3203504084084375365124014324571,5342,3412,266
CWIP53117314272953230121071642
Investments2043294896746386848807649791,000822640784
Other Assets4454716156891,0181,0861,2471,6591,6522,1972,9563,6223,752
Total Assets1,0211,2671,5431,7752,1202,3352,6442,8563,0923,6665,4196,6196,844

Reserves and Borrowings Chart

Persistent Systems Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 172216281312254286421432352736845956
Cash from Investing Activity -128-171-198-230-86-222-337-233-6-540-971-383
Cash from Financing Activity -24-39-50-66-127-58-96-160-329-144182-404
Net Cash Flow2073316416-1239165256169

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow312.00412.00386.00389.00462.00467.00554.00422.00585.00380.00-654.00-450.00

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

KPIT Technologies Ltd Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days696669676058536150616962
Inventory Days
Days Payable
Cash Conversion Cycle696669676058536150616962
Working Capital Days39342940495343372762344
ROCE %28%30%29%23%23%20%20%18%22%26%30%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters31.26%31.26%31.26%31.26%31.26%31.26%31.26%31.26%31.06%31.06%31.06%31.02%
FIIs19.44%19.30%19.92%20.03%20.45%19.81%20.29%20.55%20.50%21.34%24.55%24.96%
DIIs29.17%27.88%26.88%26.76%25.94%25.92%26.40%27.60%28.04%28.67%26.13%25.88%
Public17.74%18.51%18.71%18.81%19.51%20.44%19.76%18.52%17.99%16.96%16.91%17.03%
Others2.40%3.05%3.23%3.14%2.83%2.56%2.27%2.07%2.41%1.97%1.34%1.12%
No. of Shareholders90,2201,27,5841,51,6101,71,8751,93,0242,14,0912,00,7201,82,3991,87,0821,82,1931,85,7281,89,570

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 Plan1,903,8523.341218.46459,5162024-06-22314.32%
HDFC Mid-Cap Opportunities Fund - Regular Plan1,830,0002.251171.19459,5162024-06-22298.25%
Axis Midcap Fund1,200,6353.26768.4459,5162024-06-22161.28%
Motilal Oswal Midcap Fund970,5479.13621.15459,5162024-06-22111.21%
Motilal Oswal Flexi Cap Fund923,5226.88591.05459,5162024-06-22100.98%
Nippon India Growth Fund707,3262.12452.69459,5162024-06-2253.93%
Axis ELSS Tax Saver Fund616,6981.19394.68459,5162024-06-2234.21%
Axis Small Cap Fund459,5161.64294.09459,5162024-06-220%
ICICI Prudential Technology Fund453,4092.51290.18459,5162024-06-22-1.33%
Kotak Small Cap Fund - Regular Plan444,4342.13284.44459,5162024-06-22-3.28%

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)1.911.801.993.473.06
Quick Ratio (X)1.911.801.993.473.06
Dividend Payout Ratio (NP) (%)0.0032.3528.7823.7433.68
Dividend Payout Ratio (CP) (%)0.0024.9823.2017.0822.64
Earning Retention Ratio (%)0.0067.6571.2276.2666.32
Cash Earning Retention Ratio (%)0.0075.0276.8082.9277.36
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 (%)0.0067.6471.2176.2566.31
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: 4,418.47

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.

Undervalued: 12.03% compared to the current price 3944

Intrinsic Value: 5,571.79

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 41.27% compared to the current price ₹3944

Last 5 Year EPS CAGR: 26.10%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 22.42%, which is a positive sign.
  2. The company has higher reserves (2,357.17 cr) compared to borrowings (155.92 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (3.50 cr) and profit (389.08 cr) over the years.
  1. The stock has a high average Working Capital Days of 35.33, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 62.08, 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: %)
      • 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: %)
      • 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): 24.40
      • 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: 1.91
      • 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: 56.8 (Industry average Stock P/E: )
      • 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

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 & CFO
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

FAQ

What is the latest fair value of Persistent Systems Ltd?

The latest fair value of Persistent Systems Ltd is ₹4418.47.

What is the Market Cap of Persistent Systems Ltd?

The Market Cap of Persistent Systems Ltd is 60,764 Cr..

What is the current Stock Price of Persistent Systems Ltd as on 23 June 2024?

The current stock price of Persistent Systems Ltd as on 23 June 2024 is ₹3,944.

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 4,490/2,317.

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

The Stock P/E of Persistent Systems Ltd is 56.8.

What is the Book Value of Persistent Systems Ltd?

The Book Value of Persistent Systems Ltd is 322.

What is the Dividend Yield of Persistent Systems Ltd?

The Dividend Yield of Persistent Systems Ltd is 0.66 %.

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