This AI stock which deals in software engineering and services for a strategy to help implement in companies and improve their businesses in focus after the mutual fund cut stake in the company.
Price Action
With a market capitalization of Rs. 91,272 Crores, the shares of Persistent Systems Limited were up by 1 percent in the day’s trade touching a day’s high of Rs. 5,969.80 per share. The stock reiterated from the day’s high and was trading at Rs. 5,882.35 per share which is down 0.43 percent higher from the previous closing price of Rs. 5,911.40 apiece.
What Happened
Kotak Mahindra Mutual Fund has cut down its stake in Persistent Systems by 0.06 percent, which is 1,03,662 shares in the open market, bringing down its stake from 3.03 percent to 2.972 percent with the date of sale on 25th November 2024. The Mutual Fund still holds around 46,33,296 shares.
About the Company
Persistent Systems is a multinational technology services company which is headquartered in Pune. It was established in 1990 and specializes in digital transformation, cloud computing, and software product engineering. The company partners with clients across various industries, including financial services, healthcare, and telecommunications, providing services such as digital strategy, intelligent automation, and enterprise IT security.
They focus on modernizing enterprises through innovative solutions and have a strong presence in the U.S. market, generating approximately 80 percent of their revenue there.
Products and Services
Their business involves cloud and infrastructure services catering to hybrid and multi-cloud environments. They also focus on intelligent automation to improve operational efficiency through advanced automation technologies. Additionally, Persistent Systems delivers enterprise IT security solutions to protect digital infrastructures. Finally, they offer data and analytics services that transform data into actionable insights, clients to make informed decisions.
Financials & Ratios
Its Revenue from operations grew by 20.20 percent year on year from Rs. 2,448.95 Crores in Q2FY24 to Rs. 2,943.67 Crores in Q2FY25, accompanied by profits of Rs. 263.27 Crores to Rs. 325 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 24.51 percent and a return on capital employed (ROCE) of 28.68 percent. It has reported a debt-to-equity ratio of 0.12.
Shareholding Pattern
As of September 2024, the shareholding pattern with promoters stake holding a share of 30.66 percent in Persistent Systems, Foreign Institutional Investors (FII) holdings stood at 23.34 percent, Domestic Institutional investors (DII) standing at 27.37 percent, public holds around 16.96 percent and others standing at 1.67 percent.
Written by Santhosh S
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