Persistent Systemsas its top pick of the week. This is on the back of accelerating demand for ER&D services, robust demand for product engineering services, and hopes that digital solutions will accelerate revenue growth. The brokerage has a ‘buy’ recommendation on the stock with a target price of ₹7,115, indicating an upside of 10 percent from its current market price of ₹6,526.
Persistent Systems headquartered in Pune has specialised services in cloud computing, digitisation, and business analytics, among others. Persistent has leadership in Enterprise Software, Consumer Software, and Innovation Services. The experienced management has a strong focus on increasing wallet share from existing clients.
Furthermore, demand momentum from top clients continues with good traction in the adoption of collaboration tools, cloud, and digitisation. The stock has gained around 68 percent in the last 1 year and almost 73 percent in 2023 YTD, giving positive returns in 9 of the 12 months in the current calendar year so far, gaining the most in August, over 13 percent, and shedding the most in July, down over 5 percent. It has risen almost 3 percent in December so far, extending gains for the fifth straight month since August.
Between August and December, the stock surged over 40 percent. The stock hit its record high of ₹6,674.70 in intra-day deals today (December 12). Meanwhile, it has advanced over 77 percent from its 52-week low of ₹3,764.05, hit on December 26, 2022.
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