Fwd: Persistent Q2FY12 Result Update; Weak macro takes it's toll, cut to HOLD; Target: Rs 330

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Deepak Vaishnav

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Oct 22, 2011, 4:06:28 AM10/22/11
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Persistent Systems

Weak macro takes it’s toll, cut to HOLD

 

HOLD

 

CMP: Rs 323                                       Target Price: Rs 330

n     Persistent reported a 3.1% US$ QoQ revenue growth , marginally lower than Emkay’s modest expectations of ~3.6% US$ sequential increase

n     Profits at Rs 324 mn (+17.6% QoQ) beat est. driven by higher than expected margin show (+110 bps QoQ V/s exp of ~40 bps decline) and higher other income

n     Company cites increased uncertainty/delays in client decision making and thus sees risks to it’s revenue guidance of US$ 220 mn

n     FY12/13E EPS tweaked up by ~0.2%/3% to Rs 32/34.3 driven by lower currency resets as we cut US$ revenue estimates by ~4%/5.4%. Downgrade to HOLD , TP Rs 330

 

Regards,

Manik Taneja

Research Analyst | Emkay Global Financial Services Ltd. | www.emkayglobal.com | Email : manik....@emkayglobal.com 

Board No. : +91-22-66121212 | Extn. : 253 | DID : 66121253 | Mob : +919833934924 |

 

 


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Persistent Q2FY12 Result Update.pdf
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