Rs 10/Share Dividend: Mid-Tier IT Stock Gives AI Update, Buy For TP Rs 4,350: Axis Securities

Current market price of Persistent Systems Ltd share on BSE is Rs 3686.75 per share with intraday gain of 3.38%. Persistent Systems shares offered return of 48% in last 1-year and jumped 200% in last 3-years. The company recommended a final divided of Rs 10 per equity share of the face value of Rs 5 per share for the FY 2023-24. Meanwhile, Axis Securities has issued buy call with target price of Rs 4,350 per share. FII/FPI have increased holdings from 24.55% to 24.96% in March 2024 quarter. Number of FII/FPI investors increased from 659 to 710 in March 2024 quarter. Institutional Investors have increased holdings from 50.68% to 50.84% in March 2024 quarter. Kotak Emerging Equity Scheme has 3.18% stake in Persistent Systems. More details below:

Persistent Systems Declares Dividend: As per the regulatory filing of the mid cap IT company dated April 21, 2024, "We wish to inform you that the Board of Directors has recommended a Final Dividend of INR 10 (INR Ten only) per Equity Share having a face value of INR 5 (INR Five only) each for Financial Year 2023-24. This Final Dividend is subject to the approval of Members at the ensuing Annual General Meeting which will be held on or before September 30, 2024. The Book Closure and Record date for the purpose of payment of the Final Dividend for the Financial Year 2023-24 will be determined later and will be informed separately."

Persistent Systems Launches AI Hub: Persistent Systems today launched GenAI Hub, an innovative platform designed to accelerate the creation and deployment of Generative AI (GenAI) applications within enterprises. This platform seamlessly integrates with an organization's existing infrastructure, applications, and data, enabling the rapid development of tailored, industry specific GenAI solutions. GenAI Hub supports the adoption of GenAI across various Large Language Models (LLMs) and clouds, without provider lock-in.

Praveen Bhadada, Global Business Head-AI, Persistent said, ""At Persistent, we have always stayed ahead of the curve to capitalize on the latest industry technology trends, and now we're reaching new frontiers in GenAI to solve critical enterprise challenges and turbocharge client growth. With the Persistent GenAI Hub, clients can embrace a "GenAI-First" strategy, delivering AI-powered applications and services at scale. They can accelerate innovation while practicing responsible AI, leveraging pre-built accelerators and evaluation frameworks, and optimizing costs with a cross-LLM strategy. The GenAI Hub enables enterprises to streamline operations, enhance customer experiences, and identify new avenues for growth."

Persistent Systems Shares Performance & Return: The 52-week high price of Persistent Systems shares on BSE is Rs 4489.93 apiece (as on 19/02/2024) and 52-week low price is Rs 2318.83 apiece, respectively. Persistent Systems has a market capitalisation of Rs 56,771.28 crore. Persistent Systems shares declined 11% in last 3-months, soared 97% in last 2-years, and gave return of 1131% in last 5-years.

Axis Securities Give Buy: "We believe Persistent is well positioned for encouraging growth given its numerous long-term contracts with the world's leading brands. Improved revenue visibility gives us confidence in the company's continued growth. We assign a 35x P/E multiple to its FY26E earnings of Rs 125.8/share to arrive at a TP of Rs 4,350/share. Hence, we recommend a BUY rating on the stock," said Axis Securities.

Persistent Systems Ltd Stock Split In 2024: As per the regulatory filing of Persistent Systems dated March 13, 2024, "we wish to inform that the Company has fixed Monday, April 1, 2024 as the 'Record Date' for determining the entitlement of Equity Shareholders for the purpose of Sub-Division/Split of existing Equity Shares of the Company, such that existing 1 (One) Equity Share having a face value of INR 10 (Ten) each into 2 (Two) Equity Shares of INR 5 (Five) each, fully paid up, ranking pari passu in all respects."

Persistent Dividend History: Persistent Systems announced a total of 31 dividends since May 3, 2010. In last 12 months, Persistent Systems announced an equity dividend of Rs 54.00 per share. At the current share price of Rs 3685.25 per share, Persistent Systems offers a dividend yield of 1.46%. Adjusting for Bonus/Splits the dividend yield is 0.73%, according to Trendlyne.

Persistent Systems Q4: Persistent Systems declared a jump of 25.36% in net profit to Rs 315.3 crore year-on-year for the fourth quarter ended March 31. It announced a jump of 14.9% YoY in its consolidated revenue for the fourth quarter to Rs 2,590 crore.

Disclaimer:

The stock has been picked from the brokerage report of Axis Securities. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.