Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Still confident on demand for OPD services
The company remains confident of the growing demand for OPD (outsourced product development) services, around
cloud computing and mobility.
Wage pressure continues to be high, however, the targeted approach of hiring around Pune and Nagpur and favorable
employee pyramid in FY12 should help sustain margins in the range of c18% PBT.
Tax rate outlook remains unchanged.
Valuation and risks
We value Persistent at a PE of 12x our CY12e EPS. Our multiple of 12x is in line with the historical Indian mid-cap IT
sector multiple.
Upside risk is early margin recovery as the company is able to grow its non-linear revenues faster than the group average.
Downside risks – INR appreciation, macro-economic weakness and further pressure on margins due to wage inflation.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Still confident on demand for OPD services
The company remains confident of the growing demand for OPD (outsourced product development) services, around
cloud computing and mobility.
Wage pressure continues to be high, however, the targeted approach of hiring around Pune and Nagpur and favorable
employee pyramid in FY12 should help sustain margins in the range of c18% PBT.
Tax rate outlook remains unchanged.
Valuation and risks
We value Persistent at a PE of 12x our CY12e EPS. Our multiple of 12x is in line with the historical Indian mid-cap IT
sector multiple.
Upside risk is early margin recovery as the company is able to grow its non-linear revenues faster than the group average.
Downside risks – INR appreciation, macro-economic weakness and further pressure on margins due to wage inflation.
No comments:
Post a Comment