Reviews

PERSISTENT SYSTEMS

Ticker: 533179 FV: Rs.10 
52-Week H/L: Rs.915/629.05

We had recommended Persistent Systems in Volume No 34, Issue No 45 (dated Aug 27, 2018), when the scrip was trading at Rs 873. Our recommendation was backed by factors like robust financials. The company’s focus has been on digital business, which will continue to drive its growth in FY19 too. Also, for FY19, the company is planning to invest more for sales and marketing. To expand its geographical reach, it is looking out for more acquisitions. Recently, it acquired Herald Technologies, a US-based health-tech startup to grab opportunities in healthcare domain. Better business mix, greater utilisation ratio and strengthening of the US dollar against the rupee would drive top-line of the company and lead to improvement in margins. Thus, we urge investors to HOLD the scrip. 



KARUR VYASA BANK

Ticker: 590003 FV: Rs.2 
52-Week H/L: Rs.126.53/73.85

We had recommended Karur Vyasa Bank in Volume No 34, Issue No 42 (dated Aug 6, 2018), when the scrip was trading at Rs 106. Our recommendation was backed by factors like good growth trajectory. Recently, the RBI imposed a penalty of Rs 5 crore on the bank for non-compliance with its directions on Income Recognition and Asset Classification (IRAC) norms. The clarification from the bank is awaited. In September, it rolled out a tab-based digital initiative to help eligible retail and business customers get in principle sanctions for their loans with minimal time. Also, it has received approval from the shareholders to raise Rs 1,200 crore tier-I debt to meet capital requirement. Considering the volatility in the banking and NBFC sectors, we urge investors to REDUCE EXPOSURE to the scrip.