HDFC Securities: Persistent Systems Q2 Review - Transformation In Motion
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HDFC Securities: Persistent Systems Q2 Review - Transformation In Motion

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

HDFC Securities Report

Persistent Systems Ltd.’s relative outperformance in FY21 and growth acceleration (20% earnings per share compound annual growth rate over FY20-23E) is driven by:

  1. Recovery in technology services (deal sourcing, partnerships, client mining, and improving annuity)

  2. Better operational rigour and business synergies improving the operating profile translating into 22% free cash flow CAGR over FY2023E.

Revival in alliance business (Red Hat, Dassault Systems) and prospects of better capital allocation (cash approximately 19% of market cap) are value-accretive triggers.

Click on the attachment to read the full report:

HDFC Securities Persistent Systems Q2FY21 Results Update.pdf

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