Persistent Systems share price: Neutral on Persistent Systems, target price Rs 3130: Motilal Oswal

Motilal Oswal has neutral call on Persistent Systems with a target price of Rs 3130. The current market price of Persistent Systems is Rs 3055.7. Time period given by analyst is one year when Persistent Systems price can reach defined target.

Persistent Systems Ltd., incorporated in the year 1990, is a Mid Cap company (having a market cap of Rs 23262.24 Crore) operating in IT Software sector.

Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 1268.73 Crore, up 10.00 % from last quarter Total Income of Rs 1153.39 Crore and up 25.29 % from last year same quarter Total Income of Rs 1012.61 Crore. Company reported net profit after tax of Rs 151.25 Crore in latest quarter.

Investment Rationale
The stock is currently trading at 29x FY23E EPS. Its TP is based on 30x FY23E EPS. It downgrades the stock to Neutral as it believes the positives have already been captured.

Promoter/FII Holdings
Promoters held 31.3 per cent stake in the company as of June 30, 2021, while FIIs held 21.9 per cent, DIIs 29.6 per cent and public and other 17.2 per cent.