The operating performance of IT company Persistent Systems in the December 2024 quarter was better than the estimates of brokerage firm MK Global Financial. During this period, revenue growth on quarterly basis was 4.6 percent, while EBITM was slightly higher than the brokerage firm’s estimate of 14.9 percent. Unlike the last few quarters, this time the company has seen growth in all verticals/zones.
The company’s management is confident about the pace of growth, but some concerns have arisen regarding slowdown in growth in some segments. The management has set a target of revenue run rate of $2 billion by the end of financial year 2027. Also, the company’s management expects 2-3% increase in margins. Persistent Systems has prepared a roadmap to achieve a revenue run rate of $5 billion by the end of financial year 2031.
The environment is expected to be better in some segments, while the management’s focus is on implementing projects.
In the last one month, the company’s shares have seen a price correction of 11%, hence its rating has been ‘reduced’, while the target price for it is Rs 5,300. Its valuations remain good, hence the brokerage firm is waiting for a better entry price for investment.
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