The shares of the AI stock specializing in providing software engineering and digital transformation services, focusing on areas like cloud computing, data analytics, and AI, jumped upto 2 percent following the NCLT approval to merge with Capita Software.
Price action
With a market capitalization of Rs. 72,148.42 crores on Tuesday, the shares of Persistent Systems Limited jumped upto 2.5 percent upper circuit, making a high of Rs. 4659.15 per share compared to its previous closing price of Rs. 4543.85 per share.
What Happened
Persistent Systems Limited, which is engaged in providing software engineering and digital transformation services focusing on areas like cloud computing, data analytics, and AI, has received approval from the Hon’ble National Company Law Tribunal (NCLT), Mumbai, to merge M/s. Capiot Software Private Limited (subsidiary) into Persistent Systems Limited (holding company).
About the Company
Persistent Systems Limited is a global technology services company specializing in software engineering and digital transformation. It focuses on areas such as cloud computing, data analytics, artificial intelligence (AI), and enterprise solutions. The company serves various industries, including healthcare, banking, finance, and technology.
Order Book
Persistent Systems reported a Total Contract Value (TCV) of $ 594.1 million for the quarter, with new bookings contributing $333.6 million. The Annual Contract Value (ACV) portion of TCV was $ 428.3 million, with new bookings accounting for $195.6 million, highlighting strong performance in contract acquisitions.
Key Insights
The company’s PEG ratio of 0.35 suggests that the stock may be undervalued. With a low debt-to-equity ratio of 0.10, the company maintains a strong financial position. It has also demonstrated solid performance with an average ROE of 16.54 percent and an average ROCE of 18.96 percent over the last 3 years.
Financials
The company’s revenue rose by 22.41 percent from Rs. 2,536.53 crore to Rs. 3,104.91 crore in Q3FY24-25. Meanwhile, Net profit rose from Rs. 286.13 crore to Rs. 372.99 crore during the same period.
Written by Sridhar J
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