Buy Persistent Systems Ltd For Target Rs. 6,400 by Motilal Oswal Financial Services Ltd
* We expect 3.5% QoQ CC revenue growth in 2QFY26, led by BFSI and Hi-tech – momentum to sustain through FY26.
* Margins are expected to increase 20bp to 15.7%. With wage hikes deferred by a quarter and ESOP costs expected to remain stable in the near term, some room exists for margin expansion through SG&A leverage.
* Commentaries on recovery in hi-tech vertical are the key things to monitor.
* Management is confident in the deal pipeline and large deals in progress, which should result in >USD500m TCV range. PSYS is also working to improve its TCV-to-ACV conversion.
For More Research Reports : Click Here
For More Motilal Oswal Securities Ltd Disclaimer
http://www.motilaloswal.com/MOSLdisclaimer/disclaimer.html
SEBI Registration number is INH000000412
