Persistent Systems Share Price: After the excellent results of the December quarter, the shares of Persistent Systems rocketed on the positive trend of brokerage firm JPMorgan. Even in the selling environment, its shares jumped more than 4 percent intra-day. Despite profit booking, the shares have maintained their strength and today it closed with a gain of 4.71% at ₹ 5796.55 on BSE. Intra-day it jumped 4.92% to ₹ 5808.20. Talking about the movement of shares in a year, from the one-year low of ₹ 3232.60 on June 4, 2024 last year, it jumped more than 110% in six months to a record high of ₹ 6788.80 on December 20, 2024. Currently it is about 15 percent downside from this high.
How was the December quarter for Persistent Systems?
The December quarter for Persistent Systems was in line with market expectations on almost all fronts. Net profit jumped 14% to ₹373 crore, slightly higher than the market estimate of ₹350 crore. In US dollar terms, the company's revenue also jumped 5% quarter-on-quarter to $360.2 million and was estimated at $362.7 million in a CNBC-TV18 poll. In rupee terms, the market was expecting a revenue of ₹3,060 crore but the company's revenue jumped 5.7% to ₹3,062 crore. Operating profit margin jumped 0.90 percentage points to 14.9% as against the estimate of 14.6%. The company has also announced an interim dividend of ₹20 per share.
What is the trend in brokerage?
JPMorgan has given an outperform rating to Persistent Systems and fixed the target price at ₹ 7,200. The brokerage firm says that this company is growing the fastest among the stocks it covers. The brokerage estimates that the company's revenue can grow at a compound growth rate (CAGR) of 21% annually and earnings 29% in the financial year 2025-27. The brokerage says that the management has done a good job even in a difficult environment and the decline in its shares for some time has created a better environment for buying.
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