Motilal Oswal’s research report on Persistent Systems
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).
Outlook
We reiterate our Buy rating with a target price of INR750.
