Rs 10/Share Final Dividend: Record Date To Be Announced Soon; Buy The IT Stock?

As of Monday's closing session, Persistent Systems, a large-cap IT company, has a market worth of Rs 54,080.79 Cr. The Board of Directors approved the financial results for the quarter and year ended March 31, 2024, at its meeting on April 21. These results have been made public. The closing price of Persistent Systems' shares after the news was Rs 3510.60 each on Monday.

Persistent Systems Dividend

"We wish to inform you that the Board of Directors has recommended a Final Dividend of INR 10 (INR Ten only) per Equity Share having a face value of INR 5 (INR Five only) each for Financial Year 2023-24. This Final Dividend is subject to the approval of Members at the ensuing Annual General Meeting which will be held on or before September 30, 2024. The Book Closure and Record date for the purpose of payment of the Final Dividend for the Financial Year 2023-24 will be determined later and will be informed separately," said Persistent Systems in a regulatory filing.

In January 2024, the Board declared an interim dividend of Rs 32 per share on the face value of Rs 10 per share, according to the company.

Persistent Systems Q4 Results

For the fourth quarter that concluded on March 31, the IT company reported a 25.4% increase in net profit to Rs 315.3 crore year on year (YoY). The company's consolidated revenue for the fourth quarter was Rs 2,590 crore, up 14.9% YoY. Orders were booked at $447.7 million in terms of Total Contract Value (TCV) and $316.8 million in terms of Annual Contract Value (ACV) for the quarter that ended on March 31, 2024.

Anand Deshpande, Founder, Chairman and Managing Director, Persistent said, "Our continued success this fiscal year is a testament to our innovative spirit, remarkable resilience, and strategic foresight, powering the digital transformation journeys of our clients. We approach every challenge as an opportunity and every achievement as a stepping-stone for future endeavors. Our determination to excel in everything we do has helped us set new benchmarks in the industry. We will continue to push the boundaries to scale new heights in the coming year."

Sandeep Kalra, Chief Executive Officer and Executive Director, Persistent said, "As we reflect on fiscal year 2024, I would like to extend my gratitude towards our incredible team, clients, partners, and investors, whose continued trust has powered our impressive journey. Our industry-leading growth, strong operational rigor, and commitment to building differentiated capabilities led to Persistent's recognition as the "Most Promising Company" of the Year by CNBC-TV18 at the 2023 India Business Leader Awards. We were also included in three prestigious capital market indices - MSCI India Index, S&P BSE 100, and S&P BSE SENSEX Next 50. As we enter the new fiscal year, we are confident in our ability to drive sustainable growth with strategic investments in disruptive technologies like AI and are excited about the road ahead."

Persistent Systems Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said, Persistent Systems Ltd. (PERSISTENT) is currently trading at Rs 3533. Today, on 22nd April, Persistent experienced a 9% decline, indicating bearish pressure on the stock due to year-to-date gains being offset by a drop in Q4. The stock is currently trading near its 200-day Exponential Moving Average (EMA), which is expected to act as a support level at Rs 3462.

Furthermore, PERSISTENT is trading below key Exponential Moving Averages (EMAs), including the 20-day, 50-day, and 100-day EMAs, indicating a bearish momentum. The Relative Strength Index (RSI) stands at 25, signaling that the stock is oversold, with the possibility of a reversal to bullish territory.
To manage risk effectively, it is advisable to set a stop-loss (SL) at Rs 3300 to protect investments in case of an unexpected market reversal. A prudent strategy involves considering buying opportunities on market dips at levels of Rs 3400 and Rs 3500.

In summary, considering the technical analysis and prevailing market conditions, PERSISTENT appears to present a promising buying opportunity for those targeting a price objective of Rs 4000 and Rs 4200, contingent upon the implementation of prudent risk management measures.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.