Persistent Systems Shares Fall Amid 2% Dip In Nifty Midcap

Shares of Persistent Systems Ltd. fell over 7% on Wednesday ahead of the company's December quarter results and amid an over 1,200 point or 2% decline in the Nifty Midcap 100.

The IT company is expected to report a profit of Rs 346 crore and revenue of Rs 3,023 crore for the quarter ended December, according to consensus estimates from analysts tracked by Bloomberg. Analysts also estimate the company's EBIT to be Rs 441 crore, with a margin of 14.59%.

For the quarter ended September 2024, Persistent Systems reported a 23% increase in consolidated net profit, reaching Rs 324.9 crore, up from Rs 263.2 crore in the same period last year.

Revenue from operations for that quarter was Rs 2,897.1 crore, a 20% rise from Rs 2,411.6 crore in September 2023. The company also recorded order bookings of $529 million (approximately Rs 4,447 crore) in total contract value during the period.

The Nifty Midcap index was down over 1,200 points, or 2.40%, as of 12:19 p.m. Persistent Systems, which was one of the top-performing stocks in the Nifty IT in 2024, contributed to the decline in the Nifty Midcap 100 on Wednesday, alongside Macrotech Developers Ltd., which was down over 6%.

Prestige and Oberoi Realty also saw nearly 6% declines, while Kalyan Jewellers continued its downward trend, falling over 5%.

Shares of Persistent Systems fell as much as 7.66% to Rs 5,445 apiece, the lowest level since Nov. 6. It pared some loss to trade 7.48% lower at Rs 5,445.40 apiece, as of 12:17 p.m. This compares to a 0.07% advance in the NSE Nifty 50.

The stock has risen 32.18% in the last 12 months. Total traded volume so far in the day stood at 3.2 times its 30-day average. The relative strength index was at 31.

Out of 39 analysts tracking the company, 18 maintain a 'buy' rating, eight recommend a 'hold' and 13 suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 7.4%.