Motilal Oswal - Persistent Systems (PERSISTENT) MOSL: PERSISTENT SYSTEMS (Buy)-Braced for a change at the top

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Motilal Oswal

MOSL: PERSISTENT SYSTEMS (Buy)-Braced for a change at the top

PERSISTENT SYSTEMS: Braced for a change at the top

(PSYS IN, Mkt Cap USD0.7b, CMP INR610, TP INR750, 23% Upside, Buy)

We attended Persistent Systems' (PSYS) Analyst Day, where the company showcased - through panel discussions - its capabilities and references in the areas of Data/Machine Learning/IoT/Cloud for catering to industries such as BFS and Healthcare & Life Sciences.
Dr Anand Deshpande (currently chairman & MD) cited that the company is on the hunt for a new MD as he will take on the role of chairman. The new MD will be someone with a sales bent, which should help address PSYS' focus on Enterprise clients, apart from the traditionally strong Independent Software Vendor (ISV) segment.
PSYS expects an improved performance going forward, led by its strong technology capabilities and also some of the initiatives taken around sales that are beginning to fructify.
The company's execution strategy is focused around three verticals (BFS, Healthcare and Manufacturing) and four technologies (AI/ML/Data, Cloud, IoT, Security).
We reiterate our Buy rating with a target price of INR750.

Braced for changes at the top; strategic course to largely remain the same

Dr Deshpande cited that PSYS will likely bring on board a new MD by the beginning of the next fiscal. He will continue in the role of chairman.
The new leader is likely to be more sales oriented than technology centric. However, there is little probability of any significant changes to the strategic course undertaken by the company.

12/12/2018 10 EN

Underlying

Persistent Systems

Persistent Systems Limited is engaged in the business of building software products. The Company offers complete product life cycle services. The Company's segments include Infrastructure and Systems, Telecom and Wireless, Life science and Healthcare, and Financial Services. The Company's products include Connected Healthcare, which is an integrated healthcare ecosystem; ShareInsights Platform, which allows organizations to analyze an overlay of enterprise data with public or cloud sources to derive insights; Digital Banking, and Accelerite, which provides cloud solutions, endpoint management and mobility. The Company provides product engineering services, platform-based solutions and Internet protocol (IP)-based software products to its global customers. It has presence in North America, Europe and Rest of the World. Its subsidiaries include Persistent Systems France S.A.S., Persistent Systems Malaysia Sdn. Bhd. and Persistent Systems Pte. Ltd.

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INE262H01013 National Stock Exchange of India India

Provider

Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

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MOSL: PERSISTENT SYSTEMS (Buy)-Braced for a change at the top

MOSL : . PERSISTENT SYSTEMS: Strong growth factored in the rich valuations

PERSISTENT SYSTEMS sees a downgrade to Neutral on account of less fundamental stars

MOSL: PERSISTENT SYSTEMS (Downgrade to Neutral)- Valuation factoring in industry-leading performance

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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