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Persistent Systems Q3 Results Review: Growth Converging Across Verticals, Says Motilal Oswal — Retains 'Buy'

The stock is currently trading at an admittedly expensive valuation, but owing to its superior earnings growth trajectory, on a PEG basis, brokerage believes the valuation still has room for upside.

<div class="paragraphs"><p>Persistent Systems reported Q3 FY25 revenue of $360.2 million, up 4.3% QoQ in USD terms (estimate: 3.9%) and 4.6% in constant currency. </p><p>(Photo Source: pxhere.com)</p></div>
Persistent Systems reported Q3 FY25 revenue of $360.2 million, up 4.3% QoQ in USD terms (estimate: 3.9%) and 4.6% in constant currency.

(Photo Source: pxhere.com)

Motilal Oswal projects a 19% USD revenue CAGR over FY24-27E for Persistent Systems, which, combined with margin expansion, could result in a ~21%+ EPS CAGR. This places Persistent Systems in a league of its own as a diversified product engineering and IT services player, justifying a premium valuation multiple.
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