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

4.5%

PERSISTENT

-0.8%

IN IT

-4.2%

IN Market


1 Year Return

-27.9%

PERSISTENT

0.4%

IN IT

-12.2%

IN Market

PERSISTENT underperformed the IT industry which returned 1.9% over the past year.

PERSISTENT underperformed the Market in India which returned -10.7% over the past year.


Share holder returns

PERSISTENTIndustryMarket
7 Day4.5%-0.8%-4.2%
30 Day7.2%-1.8%-1.4%
90 Day-5.6%-4.2%-8.4%
1 Year-26.6%-27.9%2.1%0.4%-10.5%-12.2%
3 Year3.4%-1.1%66.8%58.2%13.8%8.2%
5 Year-7.9%-14.2%60.7%47.5%34.6%22.0%

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 based on future cash flows and its price relative to the stock market?

13.59x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Persistent Systems's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Persistent Systems's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Persistent Systems is overvalued based on earnings compared to the IN IT industry average.

Persistent Systems is good value based on earnings compared to the India market.


Price Based on Expected Growth

Persistent Systems is poor value based on expected growth next year.


Price Based on Value of Assets

Persistent Systems is overvalued based on assets compared to the IN IT industry average.


Next Steps

Future Growth

How is Persistent Systems expected to perform in the next 1 to 3 years based on estimates from 23 analysts?

12.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Persistent Systems's revenue is expected to grow by 9.4% yearly, however this is not considered high growth (20% yearly).

Persistent Systems's earnings are expected to grow by 12.7% yearly, however this is not considered high growth (20% yearly).

Persistent Systems's revenue growth is positive but not above the India market average.

Persistent Systems's earnings growth is positive but not above the India market average.

Persistent Systems's earnings growth is expected to exceed the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Persistent Systems is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Persistent Systems's year on year earnings growth rate has been positive over the past 5 years.

Persistent Systems's 1-year earnings growth is less than its 5-year average (3.4% vs 5.5%)

Persistent Systems's earnings growth has not exceeded the IN IT industry average in the past year (3.4% vs 15.1%).


Return on Equity

Persistent Systems has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Persistent Systems used its assets more efficiently than the IN IT industry average last year based on Return on Assets.


Return on Capital Employed

Persistent Systems has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Persistent Systems's financial position?


Financial Position Analysis

Persistent Systems is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Persistent Systems's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Persistent Systems's level of debt (0.1%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (0.2% vs 0.1% today).

Debt is well covered by operating cash flow (24287.4%, greater than 20% of total debt).

Persistent Systems earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1075.6x debt.


Next Steps

Dividend

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

2.48%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Persistent Systems's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.57%).

Persistent Systems's dividend is below the markets top 25% of dividend payers in India (2.36%).

Persistent Systems has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Persistent Systems only paid a dividend in the past 9 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.4x coverage).


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

The average tenure for the Persistent Systems management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

9.1yrs

Average Tenure

66yo

Average Age

The tenure for the Persistent Systems board of directors is about average.


Insider Trading

More shares have been bought than sold by Persistent Systems individual insiders 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: 4.8yrs
  • Anand Deshpande (57yo)

    Founder

    • Tenure: 28.9yrs
    • Compensation: ₹21.79m
  • Amit Atre

    Company Secretary & Compliance Officer

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

    CFO & Executive Director

    • Tenure: 1.7yrs
    • 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: 7.4yrs
    • Compensation: ₹10.22m

Board Members

  • Sri Srikanth (66yo)

    Member of the Advisory Board

    • Tenure: 10.3yrs
  • Prakash Telang (72yo)

    Independent Director

    • Tenure: 9.1yrs
    • Compensation: ₹2.48m
  • Anand Deshpande (57yo)

    Founder

    • Tenure: 28.9yrs
    • Compensation: ₹21.79m
  • Ashok Shah (67yo)

    Member of the Advisory Board

    • Tenure: 10.3yrs
  • Kiran Umrootkar (72yo)

    Independent Director

    • Tenure: 9.1yrs
    • Compensation: ₹2.80m
  • Sunil Sapre (55yo)

    CFO & Executive Director

    • Tenure: 1.7yrs
    • Compensation: ₹12.47m
  • Pradeep Bhargava (70yo)

    Independent Director

    • Tenure: 7.4yrs
    • 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: 0.4yrs

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: ₹44.865b
  • 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 Analysis2019/09/19 12:48
End of Day Share Price2019/09/19 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.