Obermatt

Persistent Systems

NSI:PERSISTENT · INE262H01021
IT ServicesLarge

360

73
EV / EBIT5
Price / Owner Earnings16
Owner Earnings Yield16
Dividend Yield41
Price/Sales17
EV / Gross Profit8
Price/Book1
Return on Capital91
Cash Return on Capital86
Return on Equity86
EBIT Margin88
Gross Profitability84
Cash Conversion12
Accruals14
Owner Earnings Margin92
Sales growth86
Profit Growth50
Long-Term EPS Growth93
Owner Earnings Growth83
Reinvestment81
Price momentum32
Debt load87
Refinancing56
Debt Payback100
Liquidity85
Analyst ratings20
Opinion Changes68
Price Target Upside28
Market mood94
Value Creation20/20strong value creator
  • Creates more value than its capital costs
  • Owner earnings growing
  • Owner earnings per share growing
  • Reinvests at strong returns
  • Solid earnings base

What this means

Persistent Systems generates returns well above its cost of capital, the foundation of durable shareholder value.

Profile

CountryIndia
IndustryIT Services
SizeLarge
TypePublic Company
ExchangeNSEI
Founded1990
Employees23,664
ISININE262H01021
Last UpdateApr 2, 2026
Index & Theme
Natural Language ProcessingDevSecOpsMachine LearningProcess AutomationGenAISoftware DevelopmentArtificial IntelligenceCloud ManagementCloud InfrastructureAnalyticsBig DataCloud ComputingEmbedded SystemsProduct DesignSecuritySoftware

Description

Persistent Systems Limited engages in software and IT consulting, with a primary focus on software-enabled product engineering, designing, and R&D services. This sector accounts for 93% of the company's turnover, showcasing its strength in delivering…

Analysis

Hope premium

Persistent Systems Limited is priced well ahead of what the underlying numbers justify, a pattern we describe as a hope premium. Worth noting: the cash the business generates has lagged behind what the income statement shows.

On valuation, the picture is expensive. The owner-earnings multiple stands at 32.5×; owner earnings: the cash an owner could take out each year. The implied growth embedded in that price is around 13% a year, against analyst forecasts of 22%. The price, in other words, assumes less than the experts do.

Growth is solid; the safety picture is sturdy. The company scores 20/20 on our value-creation score: strong value creator.

Flags to be aware of: Reported profits have run ahead of actual cash for several periods. As always: this describes the company's numbers; it is not a recommendation.

360° rank · history

1007550250
87
2023202420252026

All-time high

87

Jun 2026

All-time low

40

Jan 2025

Average rank

65

across all years

Detailed & Historical Ranks

Deep dive into 15 detailed ranks and 3 years of history.

Current202520242023
Price/Sales
17
19
32
36
Price/Earnings
9
7
20
31
Price/Book
1
3
10
28
Dividend Yield
41
34
36
43
Value (overall)
14
7
18
32

Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.

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Make Sense of the Ranks

Every rank runs 1–100 against true peers. Higher is always better.

360° View
1 · Watch OutGood· 100
Value
1 · ExpensiveGood Value· 100
Quality
1 · Weak FundamentalsHigh Quality· 100
Growth
1 · Tough TimesHigh Growth· 100
Safety
1 · High LeverageWell-Financed· 100
Sentiment
1 · SkepticismPositive· 100
Learn More →