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Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Persistent Systems Ltd

About the Company - Persistent Systems Ltd

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

Persistent Systems Ltd. Share Price Update

Share PriceValue
Today₹8,561.55
Previous Day₹8,524.10

Basic Stock Data of Persistent Systems Ltd

Market Cap 65,744 Cr.
Current Price 8,546
High / Low8,980/3,959
Stock P/E63.9
Book Value 574
Dividend Yield0.47 %
ROCE30.3 %
ROE25.3 %
Face Value 10.0

Data Source: screener.in

Competitors of Persistent Systems Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Happiest Minds Technologies Ltd 12,518 Cr. 8221,023/76351.7 90.40.65 %27.4 %28.9 % 2.00
Rolta India Ltd 59.7 Cr. 3.603.87/1.45 5470.00 %6.48 %% 10.0
Ramco Systems Ltd 1,070 Cr. 303357/188 1010.00 %32.6 %37.1 % 10.0
7Seas Entertainment Ltd 74.7 Cr. 40.043.9/15.190.0 0.590.00 %17.1 %% 10.0
Palred Technologies Ltd 214 Cr. 175230/112 48.40.00 %4.41 %0.08 % 10.0
Industry Average72.28 Cr268.7228.34157.480.13%17.6%13.22%8.4

Persistent Systems Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales1,0751,1131,2301,3511,4921,6381,8782,0492,1692,2542,3212,4122,498
Expenses8939251,0281,1271,2411,3571,5451,6811,7681,8381,9472,0072,056
Operating Profit182188202224251281333368402416374405442
OPM %17%17%16%17%17%17%18%18%19%18%16%17%18%
Other Income30403932314221839223738
Interest1222358111415131212
Depreciation46423537435165696870767479
Profit before tax165185203218236267282296323341307356389
Tax %27%25%26%26%25%25%25%26%26%26%25%26%26%
Net Profit121138151162176201212220238252229263286
EPS in Rs15.8218.0319.7921.1623.0826.3027.6928.7931.1432.9129.7434.2237.20

Persistent Systems Ltd Quarterly Chart

Persistent Systems Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,0001,2951,6691,8912,3122,8783,0343,3663,5664,1885,7118,3519,157
Expenses7769821,2551,5011,9212,4132,5652,8103,0733,5054,7536,8317,559
Operating Profit2243134153903924654695564936839581,5191,597
OPM %22%24%25%21%17%16%15%17%14%16%17%18%17%
Other Income342931947784119881321081444171
Interest0000000066124753
Depreciation61781039499149158157166176166272289
Profit before tax1972633433903704014294864526099241,2411,326
Tax %28%29%27%25%25%25%25%28%25%26%25%26%
Net Profit142188249291277301323352340451690921982
EPS in Rs17.7223.4531.1636.3334.6637.6840.3943.9644.5358.9790.34120.52128.01
Dividend Payout %17%19%19%41%23%24%25%25%27%34%34%41%

Persistent Systems Ltd Profit & Loss Yearly Chart

Persistent Systems Ltd Growth

Compounded Sales Growth
10 Years:20%
5 Years:22%
3 Years:33%
TTM:23%
Compounded Profit Growth
10 Years:17%
5 Years:25%
3 Years:41%
TTM:15%
Stock Price CAGR
10 Years:32%
5 Years:69%
3 Years:74%
1 Year:73%
Return on Equity
10 Years:19%
5 Years:19%
3 Years:22%
Last Year:25%

Persistent Systems Ltd 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

Persistent Systems Ltd 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

Persistent Systems Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days746966696760585361506169
Inventory Days
Days Payable
Cash Conversion Cycle746966696760585361506169
Working Capital Days37393429404953433727623
ROCE %25%28%30%29%23%23%20%20%18%22%26%30%

Persistent Systems Ltd Financial Efficiency Indicators Chart

Persistent Systems Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters31.29%31.29%31.26%31.26%31.26%31.26%31.26%31.26%31.26%31.26%31.06%31.06%
FIIs18.71%19.26%19.44%19.30%19.92%20.03%20.45%19.81%20.29%20.55%20.50%21.34%
DIIs29.52%29.59%29.17%27.88%26.88%26.76%25.94%25.92%26.40%27.60%28.04%28.67%
Public17.72%17.22%17.74%18.51%18.71%18.81%19.51%20.44%19.76%18.52%17.99%16.96%
Others2.76%2.64%2.40%3.05%3.23%3.14%2.83%2.56%2.27%2.07%2.41%1.97%
No. of Shareholders65,44470,13290,2201,27,5841,51,6101,71,8751,93,0242,14,0912,00,7201,82,3991,87,0821,82,193

Persistent Systems Ltd Shareholding Pattern Chart

No. of Persistent Systems Ltd Shareholders

Persistent Systems Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Kotak Emerging Equity Fund - Regular Plan19038523.341218.46
HDFC Mid-Cap Opportunities Fund - Regular Plan18300002.251171.19
Axis Midcap Fund12006353.26768.4
Motilal Oswal Midcap Fund9705479.13621.15
Motilal Oswal Flexi Cap Fund9235226.88591.05
Nippon India Growth Fund7073262.12452.69
Axis ELSS Tax Saver Fund6166981.19394.68
Axis Small Cap Fund4595161.64294.09
ICICI Prudential Technology Fund4534092.51290.18
Kotak Small Cap Fund - Regular Plan4444342.13284.44

Persistent Systems Ltd ROCE Trend

Persistent Systems Ltd EPS Trend

Persistent Systems Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)123.7390.3458.9744.3843.99
Diluted EPS (Rs.)120.5290.3458.9744.3843.99
Cash EPS (Rs.)156.10112.0681.9466.2464.32
Book Value[Excl.RevalReserv]/Share (Rs.)518.82440.72365.81312.17296.35
Book Value[Incl.RevalReserv]/Share (Rs.)518.82440.72365.81312.17296.35
Revenue From Operations / Share (Rs.)1092.65747.24547.97466.58425.43
PBDIT / Share (Rs.)208.01144.21103.4781.7381.38
PBIT / Share (Rs.)172.44122.4980.5060.0261.51
PBT / Share (Rs.)162.36120.9479.7459.1961.47
Net Profit / Share (Rs.)120.5290.3358.9744.5244.45
NP After MI And SOA / Share (Rs.)120.5290.3358.9744.5244.45
PBDIT Margin (%)19.0319.2918.8817.5119.12
PBIT Margin (%)15.7816.3914.6912.8614.45
PBT Margin (%)14.8516.1814.5512.6814.44
Net Profit Margin (%)11.0312.0810.769.5410.44
NP After MI And SOA Margin (%)11.0312.0810.769.5410.44
Return on Networth / Equity (%)23.2320.4916.1214.2614.99
Return on Capital Employeed (%)28.2723.4421.2418.7620.52
Return On Assets (%)13.9112.7512.2911.0012.31
Long Term Debt / Equity (X)0.050.080.000.000.00
Total Debt / Equity (X)0.100.120.000.000.00
Asset Turnover Ratio (%)0.990.930.770.760.76
Current Ratio (X)1.801.993.473.063.90
Quick Ratio (X)1.801.993.473.063.90
Dividend Payout Ratio (NP) (%)32.3528.7823.7433.6825.02
Dividend Payout Ratio (CP) (%)24.9823.2017.0822.6417.29
Earning Retention Ratio (%)67.6571.2276.2666.3274.98
Cash Earning Retention Ratio (%)75.0276.8082.9277.3682.71
Interest Coverage Ratio (X)33.5893.12136.4898.652111.13
Interest Coverage Ratio (Post Tax) (X)21.0859.3378.7854.741154.05
Enterprise Value (Cr.)34751.0435977.7713687.573758.424338.23
EV / Net Operating Revenue (X)4.166.303.271.051.29
EV / EBITDA (X)21.8632.6417.316.026.74
MarketCap / Net Operating Revenue (X)4.226.383.501.181.49
Retention Ratios (%)67.6471.2176.2566.3174.97
Price / BV (X)8.8810.825.251.762.14
Price / Net Operating Revenue (X)4.226.383.501.181.49
EarningsYield0.020.010.030.080.07

Persistent Systems Ltd Profitability Ratios (%)

Persistent Systems Ltd Liquidity Ratios

Persistent Systems Ltd Liquidity Ratios (%)

Persistent Systems Ltd Interest Coverage Ratios (%)

Persistent Systems Ltd Valuation Ratios

Fair Value / Intrinsic Value of Persistent Systems Ltd

Fair Value: ₹9323.30

The stock is undervalued by 9.10% compared to the current price ₹8546

*Investments are subject to market risks

Strength and Weakness of Persistent Systems Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 24.50%, which is a positive sign.
  2. The company has higher reserves (2,196.00 cr) compared to borrowings (152.00 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (3.31 cr) and profit (374.31 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 99.39 and average Dividend Yield of 14.83%.
  2. The stock has a high average Working Capital Days of 34.75, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 63.08, which may not be favorable.

Should I Buy Persistent Systems Ltd Share Now?

  • Based on the analysis of various financial indicators, it may be worth considering investment in Persistent Systems Ltd:
    1. Net Profit Margin: 11.03% (Higher values are generally favorable)
      • 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: 28.27% (Industry Average ROCE: 13.22%)
      • 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. Interest Coverage Ratio (Post Tax): 21.08 (Higher values, preferably > 2, are recommended)
      • 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.
    4. Quick Ratio: 1.80 (Higher values, preferably > 1, are recommended)
      • 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.
    5. ✓ Stock P/E: 64.1 (Industry average Stock P/E: 155.62)
      • 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.
    6. ✓ Total Debt / Equity: 0.10 (Lower values, preferably < 1, are preferred)
      • 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.
    While these metrics suggest potential opportunity, it's essential to conduct thorough research or seek advice from financial experts before making any investment decisions.

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