Persistent Systems Ltd.
NSE: PERSISTENTPersistent Systems Ltd.: A 30-second snapshot
Persistent Systems (NSE: PERSISTENT) is a mid-cap IT services company ranked 2nd of 6 peers on quality score and 3rd on ROE (26.35%) within its tracked IT peer set. At ₹5,402, the stock trades above the 50-DMA (₹5,026) but 2.31% below the 200-DMA (₹5,530), with a 12-month return of -3.71% set against a 14.18% recovery over the past 3 months. It carries the highest trailing PE among tracked peers at 45.41, while 5-year revenue and earnings CAGRs of 25.1% and 32.1% respectively underpin a fundamental consistency score of 98 out of 100.
P/E
45.4
Forward P/E
31.0
ROE
+26.4%
Debt / Equity
6.09
Profit Margin
+12.7%
Div. Yield
+0.8%
5Y ROE > 15%
4/5
5Y FCF > 0
4/5
Quality
75/100
News
4 headlines · 3 positive · 0 negative
Persistent Systems - 6 midcap stocks post 50%+ EBITDA growth in March '26 quarter - The Economic Times
The Economic Times
Persistent Systems Achieves Databricks BrickBuilder Specialization for Healthcare & Life Sciences - scanx.trade
scanx.trade
Persistent Systems Partners with IIT Kharagpur to Establish AI Innovation Lab for Research and Talent Development - scanx.trade
scanx.trade
Persistent Systems Ltd spurts 3.06%, gains for third straight session - Business Standard
Business Standard
Recent context
- ·Persistent Systems was cited among six mid-cap stocks reporting 50%+ EBITDA growth in the March 2026 quarter, per The Economic Times (May 2026), consistent with the company's 5-year earnings CAGR trajectory.
- ·The company announced a Databricks BrickBuilder Specialization for Healthcare and Life Sciences and an AI Innovation Lab partnership with IIT Kharagpur (May 2026), signalling continued investment in domain-specific AI capabilities.
- ·The stock gained 3.06% over three consecutive sessions as of mid-May 2026 (Business Standard), contributing to the 14.18% 3-month price recovery while still leaving the 12-month return at -3.71%.
Strengths
- +Five-year earnings CAGR of 32.1% and revenue CAGR of 25.1% are among the strongest sustained growth rates in the tracked IT peer group, supported by FCF positive results in all 4 years of available persistence data.
- +ROE of 26.35% has exceeded 15% in all 4 tracked years, ranking 3rd among 6 IT peers, ahead of HCLTECH (23.36%), TECHM (16.61%), and WIPRO (15.49%).
- +Fundamental consistency score of 98/100, with debt trend reported as falling — the D/E ratio, while elevated at 6.09, is directionally improving.
- +Quality score of 61 ranks 2nd of 6 peers, trailing only TCS (62), and forward PE of 30.96 represents meaningful compression from the trailing PE of 45.41 if consensus earnings estimates materialise.
Weaknesses
- −Trailing PE of 45.41 is 60–192% above the PE of the five larger IT peers (range: 15.55–28.49), placing PERSISTENT at rank 6 of 6 on valuation within the tracked peer set.
- −Debt-to-equity of 6.09 is an outlier in IT services, a sector where most peers carry negligible financial leverage; this level is well above sector norms and adds balance-sheet sensitivity.
- −Price is 2.31% below the 200-DMA at ₹5,530 and down 3.71% over 12 months, with a 17.85% drawdown from the 52-week high — the long-term trend remains compressed despite the recent 3-month recovery.
- −Profit margin of 12.65% and quality score of 61 lag TCS (62 quality score) and trail INFY on ROE (31.44%), indicating room for operational differentiation against Tier-1 peers.
Open questions
- ?Does the 32.1% five-year earnings CAGR reflect a durable structural shift in the company's client mix and delivery model, or is it partly driven by a favourable IT spending cycle that may moderate?
- ?At a trailing PE of 45.41 — 60–192% above large-cap IT peers — what earnings growth rate is required over the next 3–5 years to bring the valuation in line with sector multiples, and how does that compare to analyst consensus?
- ?The debt-to-equity of 6.09 is an outlier for an IT services firm; what is the composition of this debt (acquisition-related, working capital, lease obligations), and how does the repayment schedule interact with FCF generation?
- ?With the stock recovering 14.18% over 3 months but still -3.71% over 12 months and below the 200-DMA, what combination of earnings delivery and macro conditions would be needed to close the gap to the 52-week high of approximately ₹6,578?
Peer comparison: IT
Ranks 2 of 6 on qualityTechnical state
Current price
₹5,402.00
SMA 50
₹5,026.12
SMA 200
₹5,530.08
RSI (14)
65.4 (neutral)
From 52w high
-17.9%
1Y return
-3.7%
3M return
+14.2%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- mediumTrailing PE of 45.41 is the highest among 6 tracked IT peers (HCLTECH 19.49, INFY 15.55, TCS 16.89, TECHM 28.49, WIPRO 16.43), placing PERSISTENT at rank 6 of 6 on valuation. Forward PE compresses to 30.96 on expected earnings growth, but the premium to large-cap IT peers remains 60–192%.
- mediumDebt-to-equity of 6.09 is an outlier within IT services, where peers typically carry near-zero financial leverage. The reported debt trend is falling, which partially mitigates the concern, but the absolute level sits well above sector norms and warrants monitoring.
- lowCurrent price of ₹5,402 is 2.31% below the 200-DMA of ₹5,530, remaining in sub-200-DMA territory. The stock is down 3.71% over 12 months despite a 14.18% recovery over the past 3 months, with a 52-week drawdown of 17.85%.
- lowNews sample is thin at 4 articles total, limiting the reliability of the sentiment read. All 4 articles are positive or neutral; no negative headlines in the sample, but the small count means a single adverse development would shift the balance materially.
Cross-section contradictions
- ROE above 15% in all 4 tracked years, FCF positive in all 4 tracked years, 5-year earnings CAGR of 32.1%, and a fundamental consistency score of 98/100 — yet the stock is 17.85% below its 52-week high and still below the 200-DMA. The sustained operational compounding record and the subdued price trend over the past year diverge meaningfully.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Jun 2026 · rotates through NIFTY 500 every ~5 days