Midcap IT stock gets a BUY call with a target price of ₹ 8,300; Check the details

Persistent Systems ltd has recently reported its October to December results and has also approved the issue of an interim dividend. The is a mid-cap company is engaged in the business of software products, services, and technology innovation.

This week, the share has given a return of 7.51% to its investors. On Friday, the stock ended on a positive note at Rs. 4,311 with a return of 1.24%. The shares of the company has outperformed stocks in the IT sector giving a return of 20.99% in the past six months

For Q3FY2023, Persistent systems reported a net revenue of Rs. 2,169 crores which is an increase of 5.9% QoQ. The company also reported a net profit of Rs. 237.95 crores which is an increase of 8.2% QoQ. The revenues and net profits of the company have increased 45.4% and 34.9% YoY.

Sandeep Kalra, the Chief Executive Officer and Executive Director of Persistent System ltd has stated that the company has won many large deals across industries and service lines which the have 20% sequential growth in company’s total contract value.

During the recent meeting, the company also reported an issue of an interim dividend of Rs. 28 per share which is 280% dividend on the face value of the company. The ex-date for the issue of an interim dividend stock stands on 25-01-2023 

Foreign brokerage firm Macquarie selected Persistent Systems as its Top midcap Stock in the segment, giving it a target price of Rs. 8,330 which an upside of almost 100% percent from the current levels.

Written by Aaron Vas

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