Mehabe score: 6 G Factor: 5 Piotski Score: 9 The stock has a rating . The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 5 and Piotski score of 9.
Description
Persistent Systems provides software engineering and strategy services to help companies implement and modernize their businesses. It has its own software and frameworks with pre-built integration and acceleration #. It also has partnership with with providers such as Salesforce and AWS #.
Main Points
Flexible solutions
The company has few platforms of its own which are pre-built and provide quick integrations. They also have multiple partnerships for integrating other platforms #.Site:PERSISTENTMain Symbol:PERSISTENT
Stock trades at 2829.0, above its 50dma 2586.32. It also trades above its 200dma 1930.81. The stock remains bullish on techicals
The 52 week high is at 3016.10 and the 52week low is at 707.80
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– has been maintaining a healthy dividend payout of 25.15%
-‘s median sales growth is 17.45% of last 10 years
Weakness
– Stock is trading at 7.73 times its book value
Competition
– The industry trades at a mean P/E of 34.9x. Happiest Minds trades at the industry’s max P/E of 132.99x. PERSISTENT trades at a P/E of 42.2x
– Industry’s mean G-Factor is 3.6 while the mean Piotski score is 9.0. PERSISTENT has a G-Factor of 5 and Piotski scoreof 9.
– Average 1 month return for industry is 22.8%. The max 1- month return was given by Happiest Minds: a return of 59.81 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 1230.0 cr compared to Rs 991.0 cr for period ended Jun 2020, a rise of 24.1%
Operating Profits reported at Rs 202.0 cr for period ended Jun 2021 vis-vis 146.0 for period ended Jun 2020 .
Operating Margins expanded 169.0 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 19.79 compared to Rs 18.03 for previous quarter ended Mar 2021 and Rs 11.78 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 4426.0 cr for period ended TTM vis-vis sales of Rs 4188.0 cr for the period ended Mar 2021, a growth of 5.4%. The 3 year sales cagr stood at 9.6%.
Operating margins expanded to 17.0% for period ended TTM vis-vis 16.0% for period ended Mar 2021, expansion of 100.0 bps.
Net Profit reported at Rs 512.0 cr for period ended TTM vis-vis sales of Rs 451.0 cr for the period ended Mar 2021, rising 11.9%.
Company recorded a healthy Net Profit CAGR of 13.3% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 736.0 cr for period ended Mar 2021 vis-vis Rs 352.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 16.0% compared to 15.0% over the last 3 Years. – The stock has given a return of 296% on a 1 Year basis vis-vis a return of 50% over the last 3 Years. – The compounded sales growth on a TTM bassis is 19% vis-vis a compounded sales growth of 11% over the last 3 Years. – The compounded profit growth on a TTM basis is 47% vis-vis a compounded profit growth of 10% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 19.44% vis-vis 19.26% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 17.74% vis-vis 17.22% for Mar 2021
Conclusion
– is almost debt free.
– has been maintaining a healthy dividend payout of 25.15%
-‘s median sales growth is 17.45% of last 10 years – Stock is trading at 7.73 times its book value
