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Persistent Systems share stands out on the global stage showcasing its expertise in software products, services and cutting edge technology innovation. This powerhouse offers a comprehensive range of services that cover the entire product life cycle ensuring businesses are not just up to date but ahead of the curve.
With their expertise in software engineering and strategic services, Persistent Systems helps businesses by providing prebuilt integration and acceleration through their own software and frameworks.
The company originally incorporated as Persistent Systems Private Limited on May 30, 1990, transitioned into a public limited company on September 17, 2007 under the name Persistent Systems Limited. They have also established a partnership with leading providers like Salesforce and AWS to enhance their offerings.
Persistent Systems provides a range of products and services customized for different industries:
Their service lines are designed to address the evolving needs of businesses in the digital era. From crafting effective Digital Business Strategies and engineering cutting-edge digital products to optimizing customer experiences and ensuring data driven decision making they offer solutions that empower organizations to thrive in today’s dynamic business landscape.
Global Presence
Persistent Systems operates globally, reaching over 21 countries including India, Australia, Canada, Germany, Japan and more.
In the fiscal year 2023, the majority of our revenue came from the North & Central American region, contributing 78%. India and Europe each accounted for 10% and the rest of the world contributed 2% to our total revenue. This diverse geographical presence reflects our commitment to serving clients around the globe.
Persistent Systems Share Return Over Various Period
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These numbers clearly show how well Persistent’s shares have been doing over different periods.
Over the specified periods the returns for Persistent System have demonstrated an impressive return to their shareholders. In recent years, there has been a 49% increase in returns followed by a 53% rise over two years. The performance further accelerated over three and five years showcasing remarkable percentage changes of 433% and 962%, respectively. These returns highlight the system’s commitment to delivering value and positive outcomes for its shareholders reflecting a strong performance in enhancing shareholder wealth over the specified timeframes.
Persistent Systems Stock Key Financial Metrics
| Company Essentials | Value |
|---|---|
Market Cap | ₹ 49,488.16 Cr. |
Face Value | ₹ 10 |
Current Price | ₹ 6,433.30 |
52 Week High | ₹ 6,624.65 |
52 Week Low | ₹ 3,784.05 |
Industry P/E | 32.53 |
Stock P/E | 50.42 |
P/B | 10.94 |
Div. Yield | 0.78% |
Debt | ₹ 0.38 Cr. |
EPS (TTM) | ₹ 127.80 |
Persistent Systems Share Cash Flow (value in Cr.)
The table below presents Persistent System’s cash flow over the past four years, showing a positive trend. Cash generated from operating activities increased consistently reaching 955 Crores in March 2023 reflecting the company’s operational strength.
On the other hand, there was a shift in cash utilization for investing activities with a decrease in capital expenditures resulting in a more favorable position.
Meanwhile, financing activities showed fluctuations with positive cash flow in March 2022 but a dip in March 2023.
Overall, Persistent Systems share maintained a positive net cash flow indicating sound financial management and operational efficiency.
| Particulars (Standalone) | Mar 2020 (Cr.) | Mar 2021 (Cr.) | Mar 2022 (Cr.) | Mar 2023 (Cr.) |
|---|---|---|---|---|
Cash from Operating Activity | 351 | 735 | 844 | 955 |
Cash from Investing Activity | -14 | -541 | --977 | -421 |
Cash from Financing Activity | -329 | -144 | 182 | -403 |
Net Cash Flow | 16 | 51 | 55 | 169 |
Persistent Systems Stock Annual Financial Overview
Sales Growth: Persistent Systems has demonstrated impressive sales growth over the past four fiscal years. Starting at 3,566 crores in March 2020, the company’s sales experienced an upward trajectory reaching 8,351 crores by March 2023. This growth trajectory reflects a 46.2% increase showing Persistent Systems’ strong performance and market expansion.
Consistent upward trend in sales with percentages rising from 5.9% to 46.2% speaks volumes about its competitiveness and ability to capitalize on market trends.
Operating Profit Growth: Over the last four fiscal years, Persistent Systems has showcased a positive trend in its operating profit. In March 2020 the operating profit was 493 crores, experiencing a slight decline of 11.3%. However, subsequent years demonstrated growth with a noteworthy 38.5% increase in March 2021 reaching 683 crores. This upward trajectory continued in March 2022 and March 2023 with growth percentages of 40.3% and an impressive 58.6%, respectively.
The consistent expansion in operating profit reflects Persistent System’s strong financial performance and sustained growth.
Net Profit Growth: The chart below demonstrates a net profit growth trend over the past four fiscal years. Beginning at 340 crores in March 2020 there was a minor dip of 3.4% in March 2021. However, the company swiftly recovered experiencing a 32.6% growth in March 2022 resulting in a net profit of 690 crores. This upward trajectory continued into March 2023 with an impressive 33.5% growth reaching a net profit of 921 crores.
Persistent Systems Share Key Financial Metrics
ROE Ratio:
ROE Ratio or Return on Equity is like a report card for a company. It tells us how well the company uses the money its shareholders invested. A higher ROE means the company is good at turning shareholders’ money into profits.
- In the context of Persistent Systems, the company has demonstrated a solid Return on Equity (ROE) of 23%, indicating its capacity to generate a 23% return on shareholders' equity. Over the three-year period, the ROE has maintained a commendable performance at 22%, reflecting the company's sustained ability to generate returns for investors over an extended timeframe. Taking a broader perspective of five years, Persistent Systems has consistently exhibited strength with an ROE of 20%, signifying its stability and proficiency in maximizing shareholder value over an extended period.
ROCE Ratio:
ROCE Ratio which stands for Return on Capital Employed is a financial measure that tells us how well a company uses its money to make more money. If a company has a high ROCE, it means it’s doing an excellent job of using its money to make profits. But if the ROCE is low, it could mean the company isn’t using its money very efficiently.
- Shifting the focus to Return on Capital Employed (ROCE), in recent years, Persistent Systems has achieved an impressive 29%, indicating its efficiency in utilizing both equity and debt to generate profits. Over the three-year duration, the ROCE remains robust at 29%, indicating a consistent track record of maximizing returns on the total capital employed. Examining the performance over five years, Persistent Systems has maintained a strong ROCE of 26%, emphasizing its sustained ability to generate returns on the overall capital invested in the business.
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Persistent Systems Share Shareholding Pattern
As of September 2023, the ownership of Persistent is distributed among different categories of investors. Promoters hold the highest stake with 31.06% followed by the public with 16.96%. Domestic Institutional Investors (DIIs) own 28.67% while Foreign Institutional Investors (FIIs) have a 21.34% stake. Remaining 1.97% is dispersed among other minor stakeholders or entities.
Promoter Pledging (%): 0
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Final Words
In conclusion, Persistent Systems share has established itself as a global player in software products and services showcasing expertise in technology innovation. The company’s strategic partnerships with leading providers and a diverse range of services customized for various industries contribute to its strong market position.
Financial analysis highlights Positive trends in cash flow, sales growth and operating profit growth indicating operational strength, financial management and sustained growth. The consistent upward trajectory in net profit growth further underscores the company’s resilience and ability to capitalize on market trends.
Key financial metrics including Return on Equity and Return on Capital Employed reflect Persistent System’s efficiency in generating returns for shareholders over both short and extended periods.
Shareholding pattern, as of September 2023 shows a well distributed ownership among promoters, public and domestic and foreign institutional investors indicating a balanced and diversified investor base.
Overall, Persistent Systems appears to be on a solid footing with positive financial indicators a global presence and a commitment to delivering value to its shareholders.
Happy investing and thank you for reading!
Disclaimer:
This website content is only for educational purposes, not investment advice. Before making any investment, it’s important to do your own research and be fully informed. Investing in the stock market includes risks, and you should carefully read the Risk Disclosure documents before proceeding. Please remember that past performance doesn’t guarantee future results, and due to market fluctuations, your investment goals may not always be achieved.
