Persistent Systems Share Price Falls 7% After Nagarro Acquisition Deal; Buy or Sell? Check Target Price

Persistent Systems' share price fell nearly 7% during Monday's opening trading session, days after the company announced an all-cash bid to acquire Germany's Nagarro for about $1.3 billion. The acquisition is expected to strengthen its presence in Europe and help diversify its service portfolio. Additionally, its contract with a US-based technology customer is expected to contribute around $125 million annually, according to a Motilal Oswal report released on Monday, June 29.

Persistent Systems' share price opened lower on Monday, June 29. The stock was trading 7.95% lower at Rs 4455.8 per share at 9:18 am. The stock closed 1.8% lower at Rs 4840.45 per share on BSE on Thursday with a market capitalisation of Rs 76,358.10. The brokerage sees that the limited overlap and complementary geographic presence of the two entities will create a reasonable cross-sell opportunity.

Persistent Systems Nagarro Acquisition

Persistent Systems' largest ever acquisition of its German digital engineering firm, Nagarro, is expected to close by March 2027. The company is set to acquire 100% of Nagarro in an all-cash deal. Persistent has already secured a 21% stake, with Nagarro's management also intending to tender its shares.

The deal is likely to help the global IT services and digital engineering company to anchor its long-standing European ambitions and hit a $ 5 billion revenue target by March 2031. "The acquisition will be funded through a €1.4b committed bridge facility from Barclays (~4.1-4.8% borrowing cost), with no equity dilution or QIP," read Motilal Oswal report.

Persistent Systems Share Price Outlook

The acquisition will help Persistent Systems to improve its geographical mix but the market experts will focus on the deal execution and on how much value Persistent can extract from the acquisition through integration and cross-selling.

"We are relatively more cautious on the addition of ERP, a more mature and competitive service line than Persistent's core digital engineering business. While management expects margins to remain broadly stable, we would await greater clarity on integration, cost synergies, and the path toward margin convergence, given Nagarro's lower profitability."

Persistent Systems Share Price Target and Recommendation

The brokerage maintained a 'Buy' recommendation for the stock with a target price of Rs 6,200 per share. "We continue to value the stock at 34x FY28E EPS and reiterate our BUY rating with a TP of INR6,200."

Persistent Systems Share Price Trend

The stock closed lower on Thursday. It had dipped to its 52-week low mark of Rs 4,450 per share on March 2, 2026. The stock dipped to its 52-week high mark of Rs 6,597 per share on December 23, 2025. Persistent stock has a return on equity (ROE) of 30.7% and it has declined 25% in one year.