Persistent Systems Ltd.
IT · NSE
52-week range
₹4,449 – ₹6,575
From 52w high
-22.2%
RSI (14)
54.7
vs SMA 50 / 200
↑ 50 · ↓ 200
Persistent Systems (PERSISTENT) is an NSE-listed IT services company currently priced at 5,124.9 with a trailing PE of 43.2 — the highest among its 6 tracked IT peers — and a forward PE of 29.3 on anticipated earnings delivery. The stock trades 7.5% below its 200-DMA and is down 22.1% from its 52-week high, following a Q4 FY26 net profit of 529 crore that missed analyst estimates, prompting target cuts citing rich valuations. Over 5 years, the company has compounded revenue at 25.1% and earnings at 32.1% annually, and holds the top quality score (61) in its peer group.
- ✓5-year earnings CAGR of 32.1% and revenue CAGR of 25.1% represent consistent compounding above the IT sector median over the measurement period.
- ✓Quality score of 61 ranks 1st among 6 tracked IT peers (HCLTECH 40, INFY 60, TCS 59, TECHM 46, WIPRO 46), with a fundamentals consistency score of 98.
- ✓ROE of 26.35% ranks 3rd of 6 in the peer group; FCF has been positive in 4 of 4 tracked years and debt trend is reported as falling.
- ✓Forward PE of 29.3 represents a 32% compression from trailing PE of 43.2, implying the market is pricing in significant near-term earnings growth.
- ✗Trailing PE of 43.2 is the highest in the 6-peer IT group, placing PERSISTENT at rank 6 of 6 on current valuation; premium to peers such as INFY (15.6) and TCS (17.4) is material.
- ✗Debt-to-equity of 6.09 is atypically elevated for an IT services business where peers generally operate with near-zero leverage; the falling debt trend does not yet resolve the structural gap.
- ✗Price is 7.5% below the 200-DMA (5,549.5) and down 14.3% over the past 3 months, with the 52-week drawdown at 22.1% — an extended period of underperformance relative to recent fundamental history.
- ✗Q4 FY26 net profit of 529 crore missed estimates, triggering analyst target reductions and negative news sentiment (3 negative, 0 positive of 8 recent articles), suggesting near-term execution risk is being re-priced.
- ·Q4 FY26 earnings: net profit of 529 crore missed street estimates; FY26 full-year revenue was reported at 147.48 billion with a dividend of 40 per share declared (18 for Q4), per CNBC TV18 and NDTV Profit (April 22, 2026).
- ·Multiple analysts cut price targets following the Q4 result, citing rich valuations relative to near-term earnings visibility, per CNBC TV18 (April 22, 2026). Analyst count stands at 33 tracked; the numerical consensus rating on the 1–5 scale is unavailable.
- ·Q1 FY27 results are being tracked by market participants (Mint, May 8, 2026), indicating the next earnings event is in focus as the primary near-term catalyst for re-rating the forward PE of 29.3.
- ?Does the 32.1% five-year earnings CAGR reflect a structural shift in Persistent's client mix and deal sizes, or is it partly attributable to a favorable IT spending cycle that may now be moderating?
- ?At what pace would earnings need to grow for the forward PE of 29.3 to converge toward the sector peer median, and what does that imply for Q1 FY27 and beyond?
- ?How does the debt-to-equity of 6.09 compare historically for PERSISTENT, and what is the composition — operational leases, acquisition debt, or working capital — that explains the divergence from near-zero IT sector norms?
- ?Given the 22.1% drawdown from the 52-week high alongside a 1st-ranked quality score in the peer group, what factors would an investor need to see resolve before the gap between fundamental ranking and price performance narrows?
PE
43.2
Forward PE
29.3
ROE
+26.4%
Profit margin
+12.7%
D/E
6.09
Dividend yield
+0.9%
Quality score
61/100
ROE 5y above 15%
4/5 yrs
FCF 5y positive
4/5 yrs
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.Analysis generated 11 May 2026.