Persistent Systems’ strong deal wins boost outlook, acquisition costs pose risk

ET Intelligence Group: The stock of Persistent Systems has gained 31% from the 52-week low at the end of June after the mid-tier IT exporter announced the $1.4 billion acquisition of Germany based Nagarro. The BSE Infotech index has gained 10% during the period. The rebound in Persistent’s stock can be attributed to Persistent’s sustained focus on AI-driven client engagements and a better than expected June quarter result. Apart from a strong sequential revenue growth, the company booked a multi-year, mega deal worth $650 million from a US client, which improves revenue visibility.