Money

Persistent Systems Share Price Surges Over 8% Following Stellar Q3 Results


Persistent Systems’ share price skyrocketed today, January 23, 2025, climbing as much as 8.55% to ₹6,170 per share on the National Stock Exchange (NSE).

The significant surge in the company’s stock comes on the back of its robust third-quarter results, which exceeded market expectations.

The IT services provider reported a net profit of ₹373 crore for the quarter ended December 2024, reflecting a sequential growth of 14.8%. Revenue for the period also saw an increase of 5.7%, reaching ₹3,062 crore.

The company’s strong performance was attributed to its expanding global presence and its success in securing high-value contracts in the technology and innovation sectors.

To further reward its shareholders, Persistent Systems declared an interim dividend of ₹20 per share, signaling the company’s confidence in its financial health and future growth prospects.

Brokerages Respond Positively

The stellar financial performance has prompted several brokerages to revise their ratings and target prices for Persistent Systems:

  • Motilal Oswal maintained a ‘buy’ rating and raised the target price to ₹7,600 per share, indicating a potential upside of nearly 34%.
  • Nomura retained its ‘neutral’ rating but revised the target price to ₹6,200, reflecting a 9.1% upside.
  • Emkay upgraded its rating from ‘sell’ to ‘reduce’ and set a target price of ₹5,300.

Market Reaction

The stock’s strong rally this morning saw it outperform the broader market. As of 9:48 a.m., Persistent Systems was trading at ₹6,170, while the NSE Nifty 50 index edged up by just 0.2%.

Market analysts have attributed the stock’s performance to the company’s robust execution, consistent client additions, and focus on high-margin digital transformation services.

Persistent’s ability to deliver strong quarter-on-quarter growth in a competitive IT landscape has bolstered investor confidence.

Looking Ahead

Persistent Systems continues to strengthen its position as a leading player in the IT services space.

With a growing order book and strategic investments in digital technologies, the company is well-positioned for sustained growth.

Investors and analysts alike will be closely monitoring its performance in the coming quarters, particularly its efforts to capitalize on emerging opportunities in cloud computing, AI, and data analytics.

The stock’s impressive rally today highlights the market’s optimism about Persistent Systems’ future and its ability to deliver consistent value to shareholders.

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