NSEI:PERSISTENT

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with acceptable track record.


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


Market Performance


7 Day Return

5.4%

PERSISTENT

1.1%

IN IT

3.1%

IN Market


1 Year Return

-8.2%

PERSISTENT

3.8%

IN IT

3.7%

IN Market

Return vs Industry: PERSISTENT underperformed the Indian IT industry which returned 3.8% over the past year.

Return vs Market: PERSISTENT underperformed the Indian Market which returned 3.7% over the past year.


Shareholder returns

PERSISTENTIndustryMarket
7 Day5.4%1.1%3.1%
30 Day3.1%-3.5%5.7%
90 Day5.1%-1.3%1.4%
1 Year-6.5%-8.2%6.7%3.8%5.9%3.7%
3 Year-6.2%-10.3%63.5%53.6%22.3%16.0%
5 Year-2.4%-9.0%67.9%52.6%42.5%28.9%

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?

14.18x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: PERSISTENT (₹606.75) is trading above our estimate of fair value (₹586.98)

Significantly Undervalued: PERSISTENT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PERSISTENT is poor value based on its PE Ratio (14.2x) compared to the IT industry average (11.5x).

PE vs Market: PERSISTENT is poor value based on its PE Ratio (14.2x) compared to the Indian market (13.2x).


Price to Earnings Growth Ratio

Low PEG Ratio: PERSISTENT is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: PERSISTENT is overvalued based on its PB Ratio (2.1x) compared to the IN IT industry average (0.9x).


Next Steps

Future Growth

How is Persistent Systems forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

10.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PERSISTENT's forecast earnings growth (10% per year) is above the savings rate (7.6%).

Earnings vs Market: PERSISTENT's earnings (10% per year) are forecast to grow slower than the Indian market (18.2% per year).

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

Revenue vs Market: PERSISTENT's revenue (8.5% per year) is forecast to grow slower than the Indian market (11.4% per year).

High Growth Revenue: PERSISTENT's revenue (8.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: PERSISTENT's Return on Equity is forecast to be low in 3 years time (15.8%).


Next Steps

Past Performance

How has Persistent Systems performed over the past 5 years?

5.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PERSISTENT's earnings have grown by 5.5% per year over the past 5 years.

Accelerating Growth: PERSISTENT's earnings growth over the past year (3.4%) is below its 5-year average (5.5% per year).

Earnings vs Industry: PERSISTENT earnings growth over the past year (3.4%) underperformed the IT industry 13%.


Return on Equity

High ROE: PERSISTENT's Return on Equity (15.4%) is considered low.


Return on Assets

ROA vs Industry: PERSISTENT has a higher Return on Assets than the IT industry average last year.


Return on Capital Employed

ROCE Improving: PERSISTENT has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Persistent Systems's financial position?


Financial Position Analysis

Short Term Liabilities: PERSISTENT's short term assets (₹17.8B) exceeds its short term liabilities (₹4.4B)

Long Term Liabilities: PERSISTENT's short term assets (17.8B) exceeds its long term liabilities (765.4M)


Debt to Equity History and Analysis

Debt Level: PERSISTENT's debt to equity ratio (0.07%) is considered satisfactory

Reducing Debt: PERSISTENT's debt to equity ratio has reduced from 0.2% to 0.07% over the past 5 years.

Debt Coverage: PERSISTENT's debt is well covered by operating cash flow (24287.4%).

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


Balance Sheet

Inventory Level: PERSISTENT has a low level of unsold assets or inventory.

Debt Coverage by Assets: PERSISTENT's debt is covered by short term assets (assets are 1075.584290x debt).


Next Steps

Dividend

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

1.77%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%0.6%markettop25%2.5%industryaverage1.7%forecastin3Years2.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: PERSISTENT's dividend (1.77%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: PERSISTENT's dividend (1.77%) is low compared to the top 25% of dividend payers in the Indian market (2.48%).

Stable Dividend: PERSISTENT has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: PERSISTENT's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.2%), PERSISTENT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PERSISTENT's dividends in 3 years are forecast to be well covered by earnings (29.5% payout ratio).


Next Steps

Management

What is the CEO of Persistent Systems's salary, the management and board of directors tenure and is there insider trading?

6.3yrs

Average management tenure


CEO

Persistent Systems has no CEO, or we have no data on them.


Management Age and Tenure

6.3yrs

Average Tenure

54yo

Average Age

Experienced Management: PERSISTENT's management team is seasoned and experienced (6.3 years average tenure).


Board Age and Tenure

9.2yrs

Average Tenure

66yo

Average Age

Experienced Board: PERSISTENT's board of directors are considered experienced (9.2 years average tenure).


Insider Trading

Insider Buying: PERSISTENT insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy₹22,711,11010 Sep 19
Narasinha Upadhye
EntityIndividual
Shares40,200
Max Price₹566.75
Buy₹1,697,48810 Sep 19
Prakash Telang
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max Price₹565.83
Buy₹1,518,61201 Aug 19
Sandeep Kalra
EntityIndividual
Role
Member of the Board of Directors
President of Technology Services & Executive Director
Shares3,000
Max Price₹506.20
Buy₹3,731,93901 Aug 19
Anand Deshpande
EntityIndividual
Role
Chairman of the Board
Founder
Shares7,500
Max Price₹497.59
Sell₹1,149,65920 Jun 19
Heramb Abhyankar
EntityIndividual
Shares1,815
Max Price₹633.82
Sell₹1,261,16617 Jun 19
Heramb Abhyankar
EntityIndividual
Shares1,997
Max Price₹632.98
Sell₹3,038,91211 Jun 19
Heramb Abhyankar
EntityIndividual
Shares5,000
Max Price₹607.91
Buy₹1,186,93105 Jun 19
Sandeep Kalra
EntityIndividual
Role
Member of the Board of Directors
President of Technology Services & Executive Director
Shares2,000
Max Price₹606.36
Sell₹2,998,05929 May 19
Nitin Urdhwareshe
EntityIndividual
Shares5,000
Max Price₹599.61
Buy₹55,11015 Nov 18
Sunil Sapre
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares100
Max Price₹551.10
Buy₹111,81013 Nov 18
Sunil Sapre
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares200
Max Price₹559.05
Buy₹566,20513 Nov 18
Anand Deshpande
EntityIndividual
Role
Chairman of the Board
Founder
Shares1,000
Max Price₹566.20
Buy₹55,56006 Nov 18
Sunil Sapre
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares100
Max Price₹555.60
Buy₹54,95030 Oct 18
Sunil Sapre
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares100
Max Price₹549.50
Buy₹110,41029 Oct 18
Sunil Sapre
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares200
Max Price₹552.05
Buy₹3,902,29726 Oct 18
Anand Deshpande
EntityIndividual
Role
Chairman of the Board
Founder
Shares7,000
Max Price₹557.47
Buy₹570,31926 Oct 18
Sameer Bendre
EntityIndividual
Shares1,000
Max Price₹570.32
Buy₹286,16525 Oct 18
Sunil Sapre
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares500
Max Price₹572.33
Buy₹10,215,67124 Oct 18
Anand Deshpande
EntityIndividual
Role
Chairman of the Board
Founder
Shares18,000
Max Price₹567.54

Ownership Breakdown


Management Team

  • Tom Klein

    Senior Vice President of Corporate Development and General Counsel

    • Tenure: 4.9yrs
  • Anand Deshpande (57yo)

    Founder

    • Tenure: 29yrs
    • Compensation: ₹21.79m
  • Amit Atre

    Company Secretary & Compliance Officer

    • Tenure: 6.3yrs
    • Compensation: ₹2.92m
  • Sunil Sapre (55yo)

    CFO & Executive Director

    • Tenure: 1.8yrs
    • Compensation: ₹12.47m
  • Peeyoosh Pandey (43yo)

    Vice President of Business Development

    • Tenure: 0yrs
    • Compensation: ₹12.56m
  • Ghazali Azlin

    Director of Persistent Systems Malaysia Sdn. Bhd.

    • Tenure: 0yrs
  • Atul Khadilkar (55yo)

    President of Delivery Operations & Technology Services

    • Tenure: 0yrs
    • Compensation: ₹19.21m
  • Shubhangi Kelkar (53yo)

    Chief Learning Officer

    • Tenure: 0yrs
    • Compensation: ₹13.28m
  • Audrey Reutens

    Director of Persistent Systems Malaysia Sdn. Bhd.

    • Tenure: 0yrs
  • Prashant Virgaonkar (51yo)

    Vice President

    • Tenure: 7.5yrs
    • Compensation: ₹10.22m

Board Members

  • Sri Srikanth (66yo)

    Member of the Advisory Board

    • Tenure: 10.4yrs
  • Prakash Telang (72yo)

    Independent Director

    • Tenure: 9.2yrs
    • Compensation: ₹2.48m
  • Anand Deshpande (57yo)

    Founder

    • Tenure: 29yrs
    • Compensation: ₹21.79m
  • Ashok Shah (67yo)

    Member of the Advisory Board

    • Tenure: 10.4yrs
  • Kiran Umrootkar (72yo)

    Independent Director

    • Tenure: 9.2yrs
    • Compensation: ₹2.80m
  • Sunil Sapre (55yo)

    CFO & Executive Director

    • Tenure: 1.8yrs
    • Compensation: ₹12.47m
  • Pradeep Bhargava (70yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: ₹2.78m
  • Sandeep Kalra (48yo)

    President of Technology Services & Executive Director

    • Tenure: 0.3yrs
  • Sonali Deshpande

    Chairperson of Persistent Foundation

    • Tenure: 0yrs
  • Christopher O’Connor (55yo)

    CEO & Executive Director

    • Tenure: 0.5yrs

Company Information

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


Key Information

  • Name: Persistent Systems Limited
  • Ticker: PERSISTENT
  • Exchange: NSEI
  • Founded: 1990
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: ₹46.356b
  • 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 12:44
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
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.