Persistent Systems (PERSISTENT)

FairStock Score: 60/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I wear Buffett-Graham lenses, so I start with quality and then price. Persistent Systems shows a genuine business: ROE 27.40%, ROCE 30.44%, debt/equity only 0.06, and FCF ₹1,157 Cr. Sales grew 25.92% and five-year revenue CAGR 28.63%, while Piotroski 8/9 and Altman Z 8.43 point to a strong financial position. That mix of high returns, low leverage, and cash generation is rare; it suggests some durable moat in software services—switching costs, client relationships, execution. The latest quarter had Sales ₹3,778 Cr and Net Profit ₹439 Cr, so scale is real. But as Graham, I cannot ignore price. At ₹5580, Market Cap ₹87,177 Cr, P/E 45.66, P/B 11.14, Graham Number ₹1007.85, and DCF intrinsic value ₹2172.24. The margin of safety is -369.61%; I am paying a huge premium to intrinsic estimates. PEG 2.18 also says growth is not cheap. Profit growth of 7.50% badly trails sales growth of 25.92%, so I want to see whether margins or one-offs are suppressing bottom line. Dividend yield 0.65% is negligible. Promoter holding 30.29% is reasonable but not a controlling majority. FairStock 60/100 STEADY—not a bargain. This is a high-quality Fast Grower, but the stock price already discounts much future success. For an Indian retail investor, I would wait for a much wider margin of safety, or own only a small satellite position and monitor profit conversion, FCF, ROE/ROCE, and valuation.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer