Persistent Systems: SEBI RA Flags Crucial Support Levels Ahead Of Q1 Earnings

(MENAFN- AsiaNet News)

Persistent Systems is scheduled to post its quarterly results on Wednesday. Reports suggest that the technology services company is expected to post a net profit of ₹419 crore and margins of 15.6%.

On the technical charts, Persistent Systems is trading just above a critical support zone between ₹5,400 and ₹5,650, which is around 14% lower than its all-time high of ₹6,766, noted SEBI-registered analyst Rohit Mehta.

The stock has entered a consolidation phase after a strong rally and is now attempting to bounce from this level. A decisive move above ₹6,185 resistance could reignite bullish momentum, while any weakness below current support may expose downside toward ₹4,400 - ₹4,550, he added.

Persistent Systems shares had closed 0.8% lower at ₹5,731.50 on Tuesday.

On the fundamentals front, the company has delivered strong earnings lately. For the quarter ended March 2025, sales increased by 25.1%, while operating profit rose by 28.6%. Profit before tax was up 27.9% and EPS increased by 25%. It has a five-year profit CAGR of 32.8%.

The company is nearly debt-free, maintains a healthy 39% dividend payout, and has shown a 10-year median sales growth of 17.6%. However, the stock trades at a premium valuation of 14.1x book value, which could cap short-term upside, Mehta said.

Retail sentiment on Stocktwits remained 'bullish' ahead of its Q1FY26 results.

Persistent Systems' Sentiment Meter and Message Volumes at 09:14 a.m. IST on July 23 | Source: Stocktwits

The stock has experienced some selling pressure, shedding 11.5% year-to-date (YTD).

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