16-Oct-2026 08:17:18
PERSISTENTGeneral news
CITI on Persistent :Sell, TP Rs 4570
2Q was mixed – rev. growth of 7.8% qoq cc (Citi: 7.5%), driven by the large tech deal ramp up; EBIT margin of 15% (Citi: 16%) Large tech deal resulted in ~Rs. 10b of intangibles; also, margins seem well below co. avg (looking at segmental margins qoq). Forward looking indicators – (a) TTM ACV +22% yoy, (b) Headcount +13% yoy, (c) Mgmt. commentary – slower client decision making in recent weeks; still all segments expected to grow well. Factoring in 2Q trends, lower FY27E/FY28E EPS est. by1-2%.
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