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Motilal Oswal Report
Shares of Persistent Systems Ltd. are likely to remain in focus after domestic brokerage firm Motilal Oswal reiterated its ‘Buy' rating on the stock, citing strong growth visibility, a robust BFSI pipeline, and increasing traction in AI-led offerings.
The brokerage has maintained a target price of Rs 6,200, implying an upside of around 28% from the current levels.
The brokerage believes the core growth thesis remains intact, supported by continued BFSI momentum, differentiated AI and platform-led offerings, and a disciplined M&A strategy aimed at expanding its European presence and reducing geographic concentration.
While AI/license revenues may remain volatile on a quarterly basis, they continue to strengthen Persistent Systems' positioning in large enterprise transformation programs.
Motilal Oswal models ~16% USD revenue CAGR over FY26-28E, supported by a combination of organic growth and selective acquisitions. Along with gradual margin expansion, this translates into ~20-22% earnings per share compound annual rate, still among the stronger growth profiles in mid-tier IT.
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