Persistent Systems rallies to all-time high post Q2 show; Macquarie sees 31% potential upside

Shares of the midcap IT large Persistent Systems rallied successful Wednesday's commercialized aft the institution reported better-than-expected Q2 earnings. The banal aft gaining important traction was lockied successful 10 per cent precocious circuit successful aboriginal trade, nevertheless, extending its gains the IT banal marked its all-time precocious of Rs 5,764 aft gaining astir 12 per cent.

In the erstwhile trading league up of the announcement of its quarterly results, the banal ended astatine Rs 5,156.4 per share.

For the Q2 period, the company's consolidated PAT oregon nett aft taxation edged higher by 6.1 per cent sequentially to Rs 325 crore, portion Zee Business probe pegged it astatine Rs 326 crore.

Revenue during the 4th besides accrued by 5.8 per cent quarter-on-quarter to Rs 2,897.2 crore arsenic against probe estimates of Rs 2,872 crore.

The EBITDA for the reporting 4th was recorded astatine Rs 480.73 cfore, portion the EBITDA borderline was reported astatine 16.6 per cent.

Here's however planetary brokerages complaint Persistent Systems station its Q2 show:

Global brokerage Nomura has continued with its 'neutral' stance connected the banal and a people of Rs 5,200. The brokerage said resilient maturation astatine the IT large has been driven by beardown execution and steadfast woody wins. Furthermoe, 2QFY25 gross maturation had been up of expectations. Nomura expects the company's margin to amended successful 2HFY25, & inactive aiming for 200-300bp betterment successful the long-term. The banal is trading at 35.7x FY27F EPS, added the brokerage.

Meanwhile, different planetary brokerage Macquarie, portion maintaining outperform telephone connected the banal pegs the people astatine Rs 6,750, implying imaginable upside of astir 31 per cent.