Persistent Systems

Indian IT
Industry:

Growth The IT-BPM sector in India expanded at a CAGR of 13.7 per cent over 2010–17, which
01 opportunitie is 3–4 times higher than the global IT-BPM growth.
s
Leading Accounting for 56 per cent market share in the global services sourcing business. Share
02 sourcing of around 38 per cent in the overall BPM sourcing market
destination
Most lucrative The sector ranks 4th in India’s total FDI share & accounts for approximately
sector 37 per cent of total Private Equity & Venture investments in the country
investments
04 In FY17, revenues of Indian IT-BPM market is estimated to touch USD160 billion In 2015,
Cash
Indian IT firms have helped clients to save USD200 billion in last 5 years
Cow
Disruptive technologies, such as cloud computing, social media & data analytics. The
05 New SMAC (social, mobility, analytics, cloud) market is expected to grow to USD225 billion
technologies by 2020
About the Company

• Incorporated in 1990, went public in September

2010
• Shares were listed in National Stock Exchange
• Client base from wide range of sectors namely
banking, finance, insurance, healthcare, industrial,
software and technology
• It operates in many technologies like cloud services,
AI, ML, Data analytics, Identity, Access, Security etc.
• It has an extensive partner ecosystem that includes
giants like amazon web services, IBM(Watson),
Google cloud platform, Dassault systems to name a
few
• Derives 85% of its revenues from the USA
 Company Analysis: Key Financial trends
Share Holding Pattern Revenue
₹ 40,000.0
₹ 35,000.0
₹ 30,000.0
₹ 25,000.0
1 ₹ 20,000.0
₹ 15,000.0
₹ 10,000.0
₹ 5,000.0
₹-
0 0.2 0.4 0.6 0.8 1 1.2 Revenue

31-03-2014 31-03-2015 31-03-2016 31-03-2017 31-03-2018 31-03-2019

Net Income
4,000.0 Geographical segmentation of Revenue
3,500.0 7% 7% 1%
3,000.0

2,500.0

2,000.0

1,500.0
86%
1,000.0

500.0
US India Europe Rest of the World
0.0
1 2 3 4 5 6 7 8 9 10
VALUATIO
N
 Persistent
TARGET
PRICE
Rs.735

38.40%
UPSIDE

Rs. 531 CLOSING PRICE

(26Th AUG)
Microsoft Excel
Worksheet
THANK YOU!