Persistent Systems Limited (PERSISTENT) AI Stock Analysis

• Market Cap: ₹840.94B
• Dividend Yield: 0.65%
• Average Volume (3M): 14.73K
• Price to Earnings (P/E): 54.8
• Beta (1Y): 1.15
• Revenue Growth: 22.44%
• EPS Growth: 26.98%
• Country: IN
• Employees: 21,950
• Sector: Technology
• Sector Strength: 86
• Industry: Information Technology Services
• EPS (TTM): 27.20
• Shares Outstanding: 156,400,000
• 10 Day Avg. Volume: 9,612
• 30 Day Avg. Volume: 14,735
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹6,120.40
• Price Target Upside: 15.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 72 Outperform
• Price Target: ₹6,418.00 ▲(20.88% Upside)

Persistent Systems has a strong financial performance, which is the most significant factor contributing to its stock score. However, the high P/E ratio and low dividend yield suggest potential overvaluation concerns. The technical analysis shows mixed signals, with short-term bearish momentum but long-term stability. These factors combined lead to a moderate overall stock score.

Persistent Systems Limited Business Overview & Revenue Model

Company Description

Persistent Systems Limited is a global software and technology services company headquartered in Pune, India. The company specializes in providing digital transformation services and software solutions across various industries, including healthcare, financial services, and telecommunications. Persistent Systems offers a range of services, including cloud and infrastructure services, data and analytics, enterprise IT security, and software product engineering.

How the Company Makes Money

Persistent Systems Limited generates revenue through a diversified portfolio of technology services and solutions catering to multiple industries. The company's primary revenue streams include digital transformation services, where they help companies modernize their IT infrastructure and processes, and software product engineering, where they assist businesses in developing and maintaining software products. Additionally, Persistent Systems earns income from providing cloud and infrastructure services, enabling clients to migrate and manage their operations on cloud platforms. Key partnerships with leading technology companies and a strong focus on innovation and customer-centric solutions contribute significantly to its earnings.

Persistent Systems Limited Financial Statement Overview

Summary

Persistent Systems demonstrates strong financial health across all verticals. The income statement highlights significant revenue growth and strong profitability metrics. The balance sheet shows low leverage and high returns on equity, while the cash flow statement indicates efficient cash management. Overall, the company is well-positioned in the industry, with a solid financial foundation and growth trajectory.

Income Statement

Persistent Systems has shown strong revenue growth with a rate of 21.55% in the latest year, which is impressive in the Information Technology Services industry. The company's gross profit margin is robust at 27.61%, and the net profit margin is healthy at 11.73%. EBIT and EBITDA margins are also strong at 23.70% and 16.14% respectively, indicating efficient operations and cost management.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.05, indicating low leverage and financial stability. The return on equity is impressive at 22.15%, showing good efficiency in generating profits from shareholders' investments. The equity ratio stands at a solid 72.34%, reflecting a strong equity base relative to total assets.

Cash Flow

The cash flow statement reflects a stable financial position with a free cash flow to net income ratio of 0.66, and an operating cash flow to net income ratio of 0.83, indicating good cash generation relative to profits. The free cash flow growth rate of -1.83% suggests a slight decline, which could be an area to monitor, but overall cash flow management remains strong.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	58.33B	119.39B	83.51B	57.11B	41.88B	35.66B
Gross Profit	15.53B	32.96B	34.28B	23.39B	16.45B	14.13B
EBITDA	10.88B	19.27B	15.60B	11.02B	7.91B	6.25B
Net Income	7.11B	14.00B	9.21B	6.90B	4.51B	3.40B
Balance Sheet
Total Assets	87.37B	87.37B	66.73B	54.19B	36.66B	30.92B
Cash, Cash Equivalents and Short-Term Investments	23.02B	23.02B	9.56B	12.66B	15.07B	9.56B
Total Debt	3.11B	3.11B	6.58B	5.78B	984.40M	713.67M
Total Liabilities	24.18B	24.18B	27.08B	20.51B	8.70B	7.06B
Stockholders Equity	63.19B	63.19B	39.65B	33.68B	27.96B	23.86B
Cash Flow
Free Cash Flow	8.17B	9.20B	5.22B	4.60B	6.08B	2.76B
Operating Cash Flow	6.54B	11.57B	9.56B	8.45B	7.36B	3.52B
Investing Cash Flow	-1.23B	-4.34B	-4.21B	-9.77B	-5.42B	-148.44M
Financing Cash Flow	-6.32B	-6.28B	-4.04B	1.82B	-1.44B	-3.29B

Persistent Systems Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5309.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PERSISTENT, the sentiment is Negative. The current price of 5309.6 is above the 20-day moving average (MA) of 5233.24, below the 50-day MA of 5536.66, and below the 200-day MA of 5664.42, indicating a neutral trend. The MACD of -24.93 indicates Negative momentum. The RSI at 48.01 is Neutral, neither overbought nor oversold. The STOCH value of 60.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:PERSISTENT.

Persistent Systems Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LTIM	74 Outperform	₹1.53T	32.38		2.15%	7.64%	3.35%
MPHASIS	73 Outperform	₹546.94B	31.35		2.01%	8.11%	10.73%
PERSISTENT	72 Outperform	₹840.94B	54.83		0.65%	22.44%	26.98%
COFORGE	66 Neutral	₹581.57B	58.32		0.89%	44.02%	18.89%
TATAELXSI	65 Neutral	₹341.22B	45.78		1.40%	1.83%	-5.37%
Sector *	61 Neutral	$36.05B	6.66	-10.10%	1.86%	8.68%	-8.81%
TEJASNET	54 Neutral	₹106.16B	57.69		0.42%	100.45%	6.29%

Persistent Systems Limited Corporate Events

Persistent Systems Appoints Shimona Chadha as Chief Marketing Officer

Persistent Systems Limited has appointed Shimona Chadha as the new Chief Marketing Officer, aiming to strengthen its global marketing strategy and brand positioning. With over two decades of experience in marketing transformation, Chadha’s leadership is expected to drive business growth and enhance the company’s market presence.

Persistent Systems Schedules 35th AGM with Hybrid Attendance Options

Persistent Systems Limited has announced that its 35th Annual General Meeting (AGM) will be held on July 21, 2025, at its registered office in Pune, India. The meeting will accommodate both in-person and virtual attendance through video conferencing, ensuring accessibility for all shareholders. This announcement highlights the company’s commitment to transparency and shareholder engagement, aligning with regulatory requirements.

Persistent Systems Engages Investors in Non-Deal Roadshow

Persistent Systems Limited participated in a Non-Deal Roadshow on April 29, 2025, engaging with several prominent investors in New York and Connecticut. During these meetings, the company reiterated information from a recent earnings call, emphasizing its ongoing communication strategy with stakeholders.

Persistent Systems Engages Investors in Non-Deal Roadshow

Persistent Systems Limited participated in a Non-Deal Roadshow on April 25 and 26, 2025, engaging with several prominent investors both in San Francisco and virtually. The company reiterated information from its recent earnings call, maintaining transparency with investors without sharing new data, which underscores its commitment to open communication and could strengthen investor relations.