Tech services firm Persistent Systems saw its stock rally to around ₹5,950 per share this week, buoyed by strong financial results, a generous dividend payout, and solid annual returns that have captured investor attention. According to market trackers, Persistent’s share price increased by over 10% in the past month, reaching near ₹5,950 levels—its highest in recent months—on the back of robust investor sentiment.

Persistent posted consolidated revenue of approximately ₹3,260 crore in the fiscal quarter ending March 2025, up 5% quarter-on-quarter and 24% year-on-year. For the full year, the company reported around ₹11,728 crore in total income, marking strong growth connecting back to its aggressive expansion strategy .

Profit after tax stood at ₹921 crore, a 33% increase over the prior year, reflecting healthy operating performance and margin discipline. Additionally, annualised return on equity (ROE) remained around 24–25%, with return on capital employed (ROCE) above 26%, underlining strong capital efficiency. The stock delivered an impressive +54% total return over the last year, including a 400% dividend payout—₹20 per share—declared in January, yielding around 0.6%. Over a three-year period, total returns exceed 200%, and a remarkable 1,900% gain over five years highlights Persistent’s long-term investor appeal.

This blend of dividend income and capital appreciation has energized retail and institutional investors, with foreign institutional ownership climbing to roughly 24%, and promoter holding stable near 30.7%. On valuation, Persistent trades at a forward price-to-earnings (P/E) ratio of about 60–63×, with price-to-book roughly 13–14×, levels that reflect high market expectations . While premium compared to peers could pose short-term headwinds, analysts point to Persistent’s expanding high-margin offerings—such as cloud engineering, generative AI services, and IoT capabilities—as justifying the valuation.

Brokerage and analyst platforms show a “Buy” leaning, with 53% of analysts recommending purchases, 20% as holds, and 27% recommending sell . The median 12-month target price is around ₹5,460, though the range extends as high as ₹7,730 per share. Potential challenges include macroeconomic headwinds, client budget constraints, and high valuation multiples. Technical charts also suggest immediate resistance around ₹6,000–₹6,050, with support near ₹5,800 — levels traders will watch closely.

Persistent Systems is enjoying a significant momentum streak, driven by solid earnings, investor-friendly capital returns, and leading-edge digital service offerings. While its premium valuation could cap upside, the company’s robust financial health and growth strategy maintain its appeal in the IT mid-cap space.