Information Technology · NSE/BSE: PERSISTENT

Persistent Systems Limited

Computers - Software & Consulting
Market Cap ₹0.78L Cr
Verdict: Exceptional

Quality Scores

Multi-Bagger
92/100
Compounder Quality
94/100
Management Credibility
95/100
Governance
92/100
Cash Flow Quality
94/100

AI Summary

Persistent Systems has evolved into a tier-1 IT services powerhouse with a market capitalization of approximately ₹76,000 Cr. The company exhibits an exceptional 10-year sales CAGR of 20% and a 5-year profit CAGR of 35.9%, demonstrating high-quality scale-up. Its focus on Digital Engineering and AI-led transformation has allowed it to outpace larger peers in growth momentum. Financial health is robust, characterized by an almost debt-free balance sheet and superior return ratios (ROCE at 34.4%). The company maintains a healthy dividend payout policy alongside strategic reinvestment.

Top Opportunities

  • 29% 5-year Sales CAGR
  • 36% 5-year Profit CAGR
  • Debt-free operations effectively

Top Risks

  • Working capital days increased to 73 days
  • Consistently high P/E multiple (39x) limits margin of safety
  • Trading at 9.8x Book Value

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