Fundamentals

PERSISTENT SYSTEMS

Ticker : 533179
BUY: Rs. 873.05
Target: Rs. 1000

The company is engaged in providing software products having segments like infra and systems, telecom and wireless, life sciences and healthcare and financial services. For Q1FY19, the geographical mix consisted of North America (79.7%), Europe (12%), India (6.1%), and rest of the world (2.2%). The alliance business of the company grew strongly in Q1FY19 as reseller business in Europe has delivered growth. Its business from Europe grew 54.7 per cent on QoQ basis. The digital business grew 30.1 per cent YoY and the pace of growth in the segment is expected to continue in FY19. The revenue was up by 14.6 per cent YoY and EBITDA grew by 34.2 per cent YoY with margin of 16.8 per cent. PAT too was up by 16.3 per cent YoY. Also, it is trading at attractive P/E of 20.2x. Considering the robust financials, we recommend it as a BUY. 



VLS FINANCE 

Ticker : 511333
BUY: Rs. 79.95
Target: Rs. 91

VLS Finance, part of VLS Group, is engaged in providing services of asset management, strategic private equity investments, arbitrage and others like investment banking, advisory services, stock broking, etc. It has land holdings in Mumbai and Hotel Connaught Place in Delhi. It has holdings in more than 200 companies across sectors like FMCG, software, construction, media, hotels, auto, steel, ceramics etc. It has invested in well-known companies like Infosys, TV18, Dabur, Liberty, Ceat, Apollo Hospital, SBI, etc. It has major holding of 11.9 per cent stake in Relaxo Footwear. The company's holding investment value is more than Rs 1300 crore. Its main income is through equity investments and dividend income. In Q1FY19, the revenue and PAT was up by 34.3 per cent and 83.8 per cent, respectively. Thus, we recommend it as a BUY.