Persistent Systems jumps over 13% in three days

Persistent Systems rose 3.98% to Rs 4495.80, extending gains for the third trading session.

Shares of Persistent Systems have risen 13.49% in three sessions after strong Q3 results.

Last week, the IT company reported 8.2% rise in net profit to Rs 237.95 crore on a 5.9% increase in revenue to Rs 2,169.37 crore in Q3 FY23 over Q2 FY23. Gross profit during the period under review was Rs 733.36 crore, up 6.9% QoQ. While EBITDA rose by 9.1% QoQ to Rs 401.56 crore, EBITDA margin improved by 50 bps QoQ to 18.5% in Q3 FY23.

As compared with Q3 FY22, the company's net profit and revenue are higher by 34.9% and 45.4%, respectively.

 

In dollar terms, the company's revenue in Q3 FY23 was $264.35 million. Services revenue was $242.65 million (up 3% QoQ) and IP Led revenue was $21.70 million (up 8.6% QoQ).

The order booking for the quarter ended on 31 December 2022, was at $440.2 million in total contract value (TCV) and at $326.3 million in annual contract value (ACV) terms.

The board declared an interim dividend of Rs 28 per share on the face value of Rs 10 each for the financial year 2022-2023.

In a note released on 13 January 2023, a foreign brokerage firm picked Persistent Systems as its top midcap IT stock, with a target price of Rs 8,330. "We see broad-based growth drivers that have helped deliver superior growth despite a drag from top five clients," it said.

Persistent Systems is a global services and solutions company delivering digital engineering and enterprise modernization.

The stock outperformed the market over the past one month, rising 17% compared with 1.73% increase in the Sensex.

The scrip outperformed the market in past one quarter, surging 22.5% as against Sensex's 2.66% rise.

The scrip outperformed the market in past one year, climbing 4.29% as against Sensex's 3.13% rise.

On the technical front, the stock's daily RSI (relative strength index) stood at 73.72. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

On the daily chart, the stock was trading above its 50-day, 100-day and 200-day simple moving average (SMA) placed at 3986.98, 3733.67 and 3710.64, respectively. These levels will act as crucial support zones in near term.

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