BSE:533179

Stock Analysis Report

Persistent Systems

Executive Summary

Persistent Systems Limited provides computer programming, consultancy, and related services.


Snowflake Analysis

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Persistent Systems's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 533179's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.5%

533179

4.8%

IN IT

9.3%

IN Market


1 Year Return

-17.0%

533179

-16.9%

IN IT

-24.1%

IN Market

Return vs Industry: 533179 exceeded the Indian IT industry which returned -24% over the past year.

Return vs Market: 533179 exceeded the Indian Market which returned -31.7% over the past year.


Shareholder returns

533179IndustryMarket
7 Day-4.5%4.8%9.3%
30 Day-24.9%-11.9%-12.6%
90 Day-25.0%-19.8%-24.1%
1 Year-15.1%-17.0%-14.3%-16.9%-22.6%-24.1%
3 Year-3.7%-8.6%43.0%34.2%-10.9%-15.8%
5 Year-25.8%-31.7%29.3%16.8%0.3%-4.9%

Price Volatility Vs. Market

How volatile is Persistent Systems's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Persistent Systems undervalued compared to its fair value and its price relative to the market?

11.73x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 533179 (₹508.2) is trading above our estimate of fair value (₹486.22)

Significantly Below Fair Value: 533179 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 533179 is poor value based on its PE Ratio (11.6x) compared to the IT industry average (7.3x).

PE vs Market: 533179 is poor value based on its PE Ratio (11.6x) compared to the Indian market (9.4x).


Price to Earnings Growth Ratio

PEG Ratio: 533179 is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: 533179 is overvalued based on its PB Ratio (1.6x) compared to the IN IT industry average (0.6x).


Next Steps

Future Growth

How is Persistent Systems forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

13.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 533179's forecast earnings growth (13.4% per year) is above the savings rate (6.5%).

Earnings vs Market: 533179's earnings (13.4% per year) are forecast to grow slower than the Indian market (19.1% per year).

High Growth Earnings: 533179's earnings are forecast to grow, but not significantly.

Revenue vs Market: 533179's revenue (9.1% per year) is forecast to grow faster than the Indian market (8.8% per year).

High Growth Revenue: 533179's revenue (9.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 533179's Return on Equity is forecast to be low in 3 years time (15.9%).


Next Steps

Past Performance

How has Persistent Systems performed over the past 5 years?

5.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 533179 has high quality earnings.

Growing Profit Margin: 533179's current net profit margins (9.8%) are lower than last year (10.4%).


Past Earnings Growth Analysis

Earnings Trend: 533179's earnings have grown by 5.2% per year over the past 5 years.

Accelerating Growth: 533179's earnings growth over the past year (0.01%) is below its 5-year average (5.2% per year).

Earnings vs Industry: 533179 earnings growth over the past year (0.01%) underperformed the IT industry 7.2%.


Return on Equity

High ROE: 533179's Return on Equity (14.3%) is considered low.


Next Steps

Financial Health

How is Persistent Systems's financial position?


Financial Position Analysis

Short Term Liabilities: 533179's short term assets (₹19.0B) exceed its short term liabilities (₹4.7B).

Long Term Liabilities: 533179's short term assets (₹19.0B) exceed its long term liabilities (₹614.4M).


Debt to Equity History and Analysis

Debt Level: 533179's debt to equity ratio (0.06%) is considered satisfactory.

Reducing Debt: 533179's debt to equity ratio has reduced from 2% to 0.06% over the past 5 years.

Debt Coverage: 533179's debt is well covered by operating cash flow (16462.7%).

Interest Coverage: 533179 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Persistent Systems's current dividend yield, its reliability and sustainability?

2.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 533179's dividend (2.36%) is higher than the bottom 25% of dividend payers in the Indian market (0.96%).

High Dividend: 533179's dividend (2.36%) is low compared to the top 25% of dividend payers in the Indian market (4.06%).


Stability and Growth of Payments

Stable Dividend: 533179's dividend payments have been volatile in the past 10 years.

Growing Dividend: 533179's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.3%), 533179's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 533179's dividends in 3 years are forecast to be well covered by earnings (31.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.9yrs

Average management tenure


CEO

Chris O’Connor (55yo)

1

Tenure

Mr. Christopher O’Connor, also known as Chris, serves as Chief Executive Officer and Executive Director of Persistent Systems Limited since April 27, 2019. 


Leadership Team

NamePositionTenureCompensationOwnership
Anand Deshpande
Founder29.5yrs₹21.79m15.02% 5.9b
Christopher O’Connor
CEO & Executive Director1yrno datano data
Sunil Sapre
CFO & Executive Director2.25yrs₹12.47m0.0060% 2.4m
Amit Atre
Company Secretary & Compliance Officer6.83yrs₹2.92m0.000070% 27.4k
Thomas Klein
Senior VP of Corporate Development & General Counsel5.42yrsno datano data
Atul Khadilkar
Chief Corporate Development Officer0.25yr₹19.21m0.042% 16.3m
Shubhangi Kelkar
Chief Learning Officerno data₹13.28m0.063% 24.5m
Peeyoosh Pandey
Vice President of Business Developmentno data₹12.56m0.010% 4.1m
Ghazali Azlin
Director of Persistent Systems Malaysia Sdn. Bhd.no datano datano data
Audrey Reutens
Director of Persistent Systems Malaysia Sdn. Bhd.no datano datano data

4.9yrs

Average Tenure

55yo

Average Age

Experienced Management: 533179's management team is considered experienced (4.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Anand Deshpande
Founder29.5yrs₹21.79m15.02% 5.9b
Christopher O’Connor
CEO & Executive Director1yrno datano data
Sunil Sapre
CFO & Executive Director2.25yrs₹12.47m0.0060% 2.4m
Sandeep Kalra
President of Technology Services & Executive Director0.83yrno data0.0065% 2.6m
Kannankote Srikanth
Member of the Advisory Board10.92yrsno datano data
Prakash Telang
Independent Director9.67yrs₹2.48m0.027% 10.7m
Ashok Shah
Member of the Advisory Board10.92yrsno datano data
Kiran Umrootkar
Independent Director9.67yrs₹2.80m0.0078% 3.1m
Pradeep Bhargava
Independent Director8yrs₹2.78m0.018% 7.0m
Sonali Deshpande
Chairperson of Persistent Foundationno datano data15.02% 5.9b

9.7yrs

Average Tenure

66yo

Average Age

Experienced Board: 533179's board of directors are considered experienced (9.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 533179 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Persistent Systems Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Persistent Systems Limited
  • Ticker: 533179
  • Exchange: BSE
  • Founded: 1990
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: ₹39.114b
  • Shares outstanding: 76.43m
  • Website: https://www.persistent.com

Number of Employees


Location

  • Persistent Systems Limited
  • Bhageerath
  • 402, Senapati Bapat Road
  • Pune
  • Maharashtra
  • 411016
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
533179BSE (Mumbai Stock Exchange)YesEquity SharesININRApr 2010
PERSISTENTNSEI (National Stock Exchange of India)YesEquity SharesININRApr 2010

Biography

Persistent Systems Limited provides computer programming, consultancy, and related services. It operates in three segments: Technology Services, Alliance, and Accelerite (Products). The company engages in the provision of software product, services, and technology innovation in telecom and product lifecycle management domains, and digital practice; software development, professional, and marketing services; and telecommunication API gateway for defining, exposing, controlling, and monetizing telecom services to partners and application developers, as well as an Internet of Things service creation platform that allows enterprises to add a service layer to the basic APIs exposed to by connected devices, and to expose and monetize APIs. It is also involved in the implementation of platforms and related IT services for the healthcare industry. The company serves the banking, financial services, insurance, healthcare and life sciences, industrial, and software and technology industries. It has operations in South Africa, Japan, Israel, Malaysia, Singapore, Sri Lanka, Australia, Scotland, England, France, Germany, Ireland, the Netherlands, Switzerland, Canada, Mexico, and the United States. The company was incorporated in 1990 and is based in Pune, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 13:20
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.