Archive · 24 Jul 2025
Persistent Systems Shares Plunge Despite Profit: Analysis of Investor Concerns
Imagine a company called Persistent Systems that makes money and its stock price dropped.
Some financial experts think the company is still good, while others are worried.
One expert lowered their price target, preferring a different company.
However, another expert thinks the company will do very well, and suggests buying its shares.
A third expert sees potential problems, like slower growth in an important area, but still recommends buying if the price goes down.
Persistent Systems shares fell 9.3% after Q1 results were announced.
Nomura decreased its target price for Persistent Systems, favoring Coforge instead.
Motilal Oswal maintained a 'Buy' rating on Persistent Systems, predicting strong EPS growth.
JM Financial Services advised buying on dips, despite cutting growth estimates.
The company delayed salary hikes and noted a slowdown in a key healthcare account.
- Who
- Persistent Systems.
- What
- Persistent Systems' shares fell after Q1 results were announced.
- When
- The shares fell after the company announced its quarterly results for the first quarter of FY26.
- Where
- On the National Stock Exchange.
- Why
- Due to mixed reactions from financial analysts, including lowered target prices and concerns about growth.
Negative Outlook
Positive Outlook
Valuation
Negative Outlook
Nomura prefers Coforge over Persistent Systems due to valuation concerns.
Positive Outlook
Motilal Oswal maintains a Buy rating.
Revenue Growth
Negative Outlook
Nomura lowered revenue growth estimates.
Positive Outlook
Motilal Oswal estimates an 18% USD revenue CAGR over FY25-27.
- Share Drop
- 9.3%
- Nomura Rating
- Neutral
- Motilal Oswal Rating
- Buy
- JM Financial Services Rating
- Buy on dips
- Target Revenue (FY27)
- $2 billion