120% up from a 52-week low! Axis Securities still bullish on this multibagger; here's why 

Brokerage house Axis Securities has a 'Buy' rating on the Persistent Systems Limited stock and has assigned a 38x P/E multiple to its FY24E earnings of Rs 126.8/share to arrive at a target price of Rs 4,820 per share. 

Shares of the Pune-headquartered company have delivered multibagger returns to its shareholders in the last one year. In the past one year, the share price jumped from Rs 1,960 to Rs 4,410.30, logging over 125 per cent return in this period. 

The scrip closed 5 per cent higher at Rs 4287.85 against the previous close of Rs 4076.90. With a market capitalisation of more than Rs 32,000 crore, the shares stand higher than 5-day, 50-day and 200-day moving averages but lower than 20-day and 100-day moving averages. 

Long-term investors have made big gains by investing in this stock as it has surged around 2,300 per cent in the last five years. 

Axis Securities noted that the company’s multiple long-term contracts with the world’s leading brands have bolstered its business resilience along with providing long-term visibility. 

"While traction in the sales and deal wins continued to be robust, the large deal pipeline continued its healthy trend as well. Total TCV for Q4FY22 stood at $361 Mn and the company expects healthy deal win momentum and strong seasonality for IP revenue to aid in FY23 performance," it said. 

It further added that a strong deal pipeline and strong revenue growth momentum in Services vertical as well as in Allied businesses will enable the company to deliver a higher growth trajectory vis-à-vis its peers. 

The mid-tier IT company posted a 42 per cent jump in revenue to USD 217 million in the March quarter, when it witnessed a 45.9 per cent growth in net profit at Rs 200.9 crore. 

Persistent's chief executive Sandeep Kalra told PTI that the company now looking at realising the USD 1 billion aspiration in ''four to six quarters'' from now, which means it will be hitting the USD 250 million per quarter revenue by September. 

Kalra said only USD 4.7 million came from the three acquisitions tied up by the company in the last two quarters, and added that most of the revenue is organic one.