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Persistent Systems Ltd

NSE: PERSISTENT BSE: 533179

5324

(-3.57%)

Mon, 23 Feb 2026, 09:28 am

Persistent Systems Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (3.7x coverage).
  • Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).
  • Persistent Systems's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Persistent Systems's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Persistent Systems's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Persistent Systems's earnings are expected to increase by more than the low risk growth rate in 3 years time.
  • Performance (ROE) is expected to be above the current IN IT industry average.
  • An improvement in Persistent Systems's performance (ROE) is expected over the next 3 years.
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Cons

  • Cash flow for Persistent Systems is expected to increase but not above the 50% threshold in 2 years time.
  • Persistent Systems's earnings are expected to grow by 9.1% yearly, however this is not considered high growth (20% yearly).
  • Persistent Systems's earnings growth is positive but not above the India market average.
  • Persistent Systems's earnings are expected to decrease over the next year.
  • Persistent Systems's net income is expected to increase but not above the 50% threshold in 2 years time.
  • Persistent Systems is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • Persistent Systems's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Persistent Systems's revenue is expected to grow by 6.2% yearly, however this is not considered high growth (20% yearly).
  • Persistent Systems's revenue growth is positive but not above the India market average.

health

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Pros

  • Persistent Systems is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Persistent Systems is profitable, therefore cash runway is not a concern.
  • Persistent Systems is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (6321.1%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 388.8x debt.
  • Persistent Systems's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (0.3% vs 0.2% today).
  • Persistent Systems earns more interest than it pays, coverage of interest payments is not a concern.
  • Persistent Systems's level of debt (0.2%) compared to net worth is satisfactory (less than 40%).
  • Low level of unsold assets.
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Cons

    management

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    Pros

    • The tenure for the Persistent Systems board of directors is about average.
    • The average tenure for the Persistent Systems management team is over 5 years, this suggests they are a seasoned and experienced team.
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    Cons

      past

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      Pros

      • Persistent Systems's year on year earnings growth rate has been positive over the past 5 years.
      • Persistent Systems used its assets more efficiently than the IN IT industry average last year based on Return on Assets.
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      Cons

      • Persistent Systems's 1-year earnings growth is negative, it can't be compared to the 5-year average.
      • Persistent Systems's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
      • Persistent Systems has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
      • Persistent Systems's 1-year earnings growth is negative, it can't be compared to the IN IT industry average.

      value

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      Pros

      • PERSISTENT outperformed the IT industry which returned -10.1% over the past year.
      • PERSISTENT outperformed the Market in India which returned -14.5% over the past year.
      • NSEI:PERSISTENT is up 11.2% outperforming the IT industry which returned 8.5% over the past month.
      • NSEI:PERSISTENT is up 11.2% outperforming the market in India which returned 8% over the past month.
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      Cons

      • Persistent Systems's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
      • Persistent Systems's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
      • Persistent Systems is overvalued based on assets compared to the IN IT industry average.
      • Persistent Systems is poor value based on expected growth next year.
      • Persistent Systems is overvalued based on earnings compared to the IN IT industry average.
      • Persistent Systems is overvalued based on earnings compared to the India market.

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