Persistent Systems Share Price: Multibagger IT Stock Turned Rs 1 Lakh Investment To Rs 20 Lakh In Five Years

Persistent Systems Ltd., a multibagger stock, has delivered a robust five-year return of 1,962.71% and a 54.5% gain so far in 2025, underscoring investor optimism around the Indian IT sector.

Bloomberg data shows that of the 41 analysts tracking the stock, 21 have a ‘buy’ call, 11 suggest a ‘hold’, and nine recommend a ‘sell’.

On Wednesday, shares of the company closed 0.33% higher at Rs 5,965.50 apiece, outperforming the 0.15% advance in the benchmark Nifty 50. From its listing price of Rs 310 in March 2010, the stock has surged nearly 1,824%, underscoring its multibagger status.

The stock’s recent surge comes amid easing trade tensions between the US and China, which have been a significant overhang for technology exporters. Top negotiators from both countries concluded talks in London this week, discussing ways to restart rare-earth mineral shipments critical to advanced manufacturing. The White House’s decision to suspend tariff hikes through August has also buoyed sentiment, with both sides expressing cautious optimism about further progress.

Given that Indian IT firms like Persistent Systems conduct substantial business with US clients, the improving global trade environment has helped sustain demand for digital transformation and data analytics solutions. This has reinforced the stock’s upward momentum, which has been supported by the company’s operational performance.

For the January-March quarter of fiscal 2025, Persistent Systems posted revenue of Rs 3,242 crore, up 5.9% sequentially. Net profit rose 6.1% to Rs 396 crore, while earnings before interest and taxes improved by 10.9% to Rs 505 crore. Ebit margin expanded to 15.6% from 14.9% in the previous quarter, reflecting better cost management and higher-value projects.

Persistent Systems, headquartered in Pune, provides services in digital transformation, cloud computing, and data analytics, catering to sectors such as healthcare, financial services, and telecommunications. The company’s exposure to the US market positions it to benefit further from any durable resolution to US-China trade tensions.