1. Persistent Systems A Differentiated Play in IT

2. Content Index Persistent Systems Investment Snapshot :- Slide #3 Outsourced Product Development ( OPD ) An Overview :- Slide #5Technology Refreshment Cycle An Overview :- Slide #11 Persistent Systems Business Overview :- Slide #14 Investment Rationale :- Slide #22 Persistent Systems Financials:- Slide #27 Conclusion :- Slide #31 Specialists in discovering Multibagger stocks 3. Persistent Systems Investment Snapshot (As on May 18, 2012) Persistent Systems is a leader in the outsourced productRecommendation :- BUYdevelopment (OPD) space where it helps build software products with services across all phases of the productAccumulation Range :- 330-350lifecycle. There is no comparable listed peer in the Indian markets and is a differentiated play from other IT firms.Current Market Price Rs. 349.85 Persistent has a very strong clientele and works withBloomberg / Reuters Code PSYS IN / PERS.BO marquee names like Microsoft, IBM and also substantial part of its earnings (~25%) comes from start-ups whichBSE / NSE Code 533179 / PERSISTENT helps it to be ahead of the technology curve.Mkt Cap (INR BN / USD Mn) 140.6 / 258.97 OPD market has gained momentum after the economic[1 USD Rs. 54.29]downturn and the company has seen strong growth for the past 3 years and is expected to continue goingTotal Equity Shares [Mn] 40 forward.Face Value Rs. 10 Persistent management has guided a strong growth on top line of about 24% and also intends to maintain the52 Week High / Low Rs. 409 / Rs. 281 PAT at about 140Cr for FY 12 in spite of substantial increase in tax rates. Company expects the strongPromoters Holding 38.95%demand to continue.Institutional Holding 32.98% Persistent is trading at wonderful valuations and we feel that the stock deserves a re-rating considering the quality of earnings and the strong cash generating potential. Specialists in discovering Multibagger stocks 4. Key Investment HighlightsStrong Operations Persistent systems is a well established player in the OPD market and has grown at a fast paceover its mid-cap peers. It has grown at a CAGR of 29% or 3.5x over FY06-11. Companys growth rate through theglobal recession shows the resilience of the business model. Persistent has a strong domain focus and also at thefore-front of adopting new technologies. Persistent helps companies architect their products and provides servicescovering the entire lifecycle of product development.Significant Competitive Advantage Persistent has a strong moat in the form of clients trust which is a very bigentry barrier for newer players. Persistent has nurtured this relationships over the years and hence been able towork on important projects of its customers. Persistent has a strong product development culture and a valuefocused business model built over the past two decades which is not easy to replicate.Strong Clientele Persistent has a very strong clientele of around 300 customers of which nearly 40 customers havea revenue above 1 Billion $s. They include marquee names like IBM (Since 2001), Microsoft (1993), Intel (2000),Oracle(1997) and Salesforce.com . Persistents clients on an average spend more than 10% of their top line in R&Dwhich provides significant scope for customer mining. Growing relationship over the years and over 90% revenuefrom repeat customers are witness to the quality of Persistents work.High Quality Management Persistent has very strong corporate governance processes which can be seen from itsboard composition (Quality Independent Directors), CSR activities and the transparency of the company even whileit was private. Company has long term PE investors like Norwest Partners, Gabriel Partners who also bring in richstart-up contacts.Attractive Valuation Persistent systems is trading at wonderful valuations considering its earnings quality and itsdifferentiated focus. Company is trading at a EV/EBIDTA of 4.4 on FY 13(E) which is cheap for a company which has aROCE of over 23%. Persistent deserves a premium when compared with its midcap peers and hence ready for a re-rating in its price. Specialists in discovering Multibagger stocks 5. Outsourced Product Development ( OPD ) An Overview Specialists in discovering Multibagger stocks 6. What is OPD ? Outsourced Product Development (OPD) refers to the outsourcing of a part of software development to thirdparty vendors (TPV) by the Independent Software Vendors (ISV) like Microsoft, Oracle etc. OPD is a rapidlygrowing segment within outsourced software services and includes all kinds of activities like research, prototyping,development, testing, documentation deployment, maintenance etc. Why OPD ? With heightened customer demand and ever increasing demand to cut down product cost and crunch time to market,ISVs can remain competitive only by, Reducing Product Lifecycle Preventing Product from reaching the stage of technology obsolescence Building Modular, Tightly integrated product to add on functionality Focusing on new competencies.According to a study, Profitability is directly proportional to crashed time to market, number of release and indirectlyproportional to number of bugs. Product Profitability = K *(Shortened Time)*(Number of Release)/ (Number of error)By Outsourcing Product Development, companies are able to shorten time to market , increase number of releases,decrease bug. The value K is value factor (expertise) which outsourcing service provider further brings to the table.ISVs are able to get scalable delivery, mature project management practices, reduced management bandwidth andimproved reliability. Specialists in discovering Multibagger stocks 7. Indian ER&D Market Indias Engineering R&D outsourcing market is expected to grow at a fast pace and its estimated that by 2020, India cancapture 40% of the global ER&D spend due to a strong diverse service provider pool, large trained workforce andmoving up the value chain by Indian Service Providers. Persistent Systems focuses mainly on the three verticals of Telecom, Infrastructure & Systems and Life Sciences. Specialists in discovering Multibagger stocks 8. Phases Of Outsourcing1.) Labor Cost Efficiency- To reduce cost2.) Process Efficiency- To improve quality3.) Design Efficiency- Design formanufacturing (DFM)4.) Innovation Efficiency- Original Design& Manufacturing (ODM) Global Outsourcing of product development to TPVs have grown significantly after the economic downturnwhich forced the IPVs to look for efficient partners who add value to their product development. The four phases shown above are the trends seen in outsourcing of product development in Industries likesemi-conductors, automobile and electronics. Software development is probably between the 2 nd & 3rdphase of evolution and it is expected that within a decade it will reach the matured phase of original designand hence enable OPD companies to move up the value chain and create huge growth opportunities. Specialists in discovering Multibagger stocks 9. Disadvantage of Captives In a bid to leverage the cost advantages, better access to skillsand for catering to local markets, a number of large captiveshave been established in India by major product companies likeIBM, Oracle, Microsoft etc. It can be seen from the fig that the size is large enough toaccommodate both the TPVs and captives. Most of the top 25clients have a sizeable offshore presence in the form of captivesbut still find value with Persistent. Though , majority of the workis still done by the captives there is a strong case for it to change, TVPs like Persistent with their IP leveraged and process oriented delivery have an advantage overcaptives in decreasing the time to market of the product. Changing market scenario because of disruptive technologies like cloud computing, mobility, analytics& collaboration are driving product strategies which the TPVs are good at. Lack of flexibility among captives due to higher overheads as compared to scale advantages of largeTPVs which enables them significant cost savings. TPVs have a broad based and deep exposure to large number of clients which gives them experienceand knowledge when compared with captives and hence are able to perform effectively. Specialists in discovering Multibagger stocks 10. IT Service PlayersVs OPD PlayersTarget Customers : Broad Set of Enterprises like GE Independent Software Vendors (ISVs) like OracleEnd Customer: Clients themselvesClients customersValue Proposition: Reduces fixed costs and improves Reduces time to market, Variable costs and adds valueefficiencyEngagement Models:More AnnuityLess Annuitybased Business based business butin maintenance repeat Businesscontracts. from product upgrades.Customer Stickiness: Low due to non-core work and the High stickiness due to involvement of sensitive workscalability for a new player is relatively easy.and presence of high engineering skills & hencedifficult for a new player to develop the requisites.Scope: All Fig 2008 -09-10-11 - 12 A - 13 E Offshore 2008 -09 -10-11-12 A-13 Ein US $ BnR&D/ ProdDevelopIT SVCS Spend544541555578 606639Spend7.78 910.7 13 16.1YoY Growth % 5.4-0.6 2.64.1 4.85.4YoY %4.13.9 12.5 18.9 21.5 23.8 11. Technology Refresh Cycle An Overview Specialists in discovering Multibagger stocks 12. Shifts in Technology World is rapidly changing with increasing use of APPS across platforms like Ios, Android, Nokia-Windows, Blackberry etc. There has been a paradigm shift in the business of IT Products market due to the evolution of new technologies and the way the products are deployed to customers. The world is going through a technology refresh cycle after the global economic downturn and the first refresh cycle after the Y2K boom. This refresh essentially enables all the companies to upgrade their existing IT systems which run on old technologies to more efficient and better IT in order to drive business growth. This refresh cycle creates demand for new IT Products and embrace new technologies which is good forOPD players like Persistent Systems because of the increased product development. Some of the major changes have been the shift from Capex to Opex model and viewing Software as aService (SaaS). Last refresh cycle enabled businesses to move to the web platform and this refresh cycle isdriven by the increasing mobility and cloud based services. Specialists in discovering Multibagger stocks 13. New Technology Trends Cloud ComputingEnterprise Mobility AnalyticsEnterprise CollaborationCloud Computing: It encompasses a general shift of computer processing, storage and software delivery away from thedesktop and local servers to next generation common data centers maintained by infrastructure companies like Google, IBM& Microsoft. Cloud computing offers end-customers the chance to consume services on pay per use basis. It ensures betterresource utilization through resource sharing and lower costs due to economies of scale.Enterprise Mobility: With the proliferation of smart phones and advanced mobile devices like IPods, Tablets etc, there is aconstant demand for new/ upgraded applications running on these devices. Businesses are changing to take advantage ofthis large growing space.Analytics: Global data has been growing exponentially with the advent of large users entering the web. Hence, there is astrong need for processing and managing large volumes of data which is driving analytics. Big Data is a new phenomenon.Enterprise Collaboration: Collaboration involves designing applications or products that use web as a participationplatform leading to highly active user-centric environment with a lot of user-generated content and interaction amongst itsusers. Corporates across the globe are latching on to these tools for better productivity. Specialists in discovering Multibagger stocks 14. Persistent Systems Business Overview Specialists in discovering Multibagger stocks 15. Key Highlights Differentiated Play with Strong Growth Drivers Persistent Systems is an end to endplayer in the outsourced product development space. Company has strong growth driversStrong Balance Sheetand business demand is buoyant.Robust Clientele Persistent has a strong balancePersistent has a robust clientele ofsheet with little debt and enough both large marquee names andleverage for new investments. start-ups to the tune of about 300customers with the top 10 It has done good acquisitions in Persistent customers contributing to nearlythe past and can expect this cash 50% of its revenues.to be spent judiciously. Systems Thought Leadership in Non-Linear Revenues Emerging Technologies Persistent has invested and created Persistents investment in newa large number of IP products which emerging technologies like cloud,have higher margins and generate mobility, analytics & collaboration non-linear revenues.during the slowdown has started toyield results with nearly 40% of It is expected to generate more than revenue from these technologies. 20% from IP led business in FY15 Specialists in discovering Multibagger stocks 16. Product Development SkillsPersistent is present across the entire value chain of product engineering business and helps clients to build productsefficiently at a low cost in a short period of time.Persistent helps web 2.0 companies to architect their products on a scalable and efficient platform. Persistent end to endservices provides clients bandwidth to focus on product ideation and their sales/ distribution.Nearly , 40-45% of Persistents revenues comes from new technologies like Enterprise mobility, Analytics, Cloud computingand Enterprise collaboration. Persistent Systems recently developed Exploriments Mobile learning Apps for the global Ipad community which shows theflexibility of the organization and being on top of new trends. Specialists in discovering Multibagger stocks 17. Focus Verticals & TechnologiesCloud Computing (% of total Revenues: 10 %): Software companies are re-designing their products to operate with highdegree of multi-tenancy. Persistent systems is partnering with leading vendors to enable software companies to migratetheir products to the cloud platform. Persistent helps companies like IBM, Microsoft who sell cloud based products/platforms to build the requisite infrastructure.Analytics (10%): Persistents expertise of processing and managing large volumes of data through data mining, statisticaltechniques and virtualization is used to deliver domain specific insights to customers.Enterprise Collaboration (15%): Persistent has been working with companies to build products that leverage technologiesacross e-mail and messaging, text mining and analytics, social networking and web 2.0. Persistent builds frameworks tointegrate diverse collaboration tools.Enterprise Mobility (7%): Persistent has been working with handset manufacturers, wireless network equipmentcompanies to build solutions like enterprise wide mobility platform which helps their clients to come on-board mobileplatforms. Companys early focus has enabled it to reap rich rewards. Specialists in discovering Multibagger stocks 18. Selling ModelsTime & Expense Model Fixed Price (FPP) TurnkeyRevenue Sharing/ Risk Reward(Offshore DevelopmentProjectsCenter Model)Dedicated Teams extend Clear Requirements andComplete product ownershipcustomer engineering.change management process. for maintenance, road map ownership and upgrades.Onsite team with primary Initial Onsite presence for Onsite and offshore presenceoffshore execution.requirements phase. as appropriate.Flexible ramp-up and Flexible in on-tap experts Launching new productsramp-down suitable for available on short termtogether in new markets, Roadongoing co-development assignment. Suitable for map extensions etc.and quality analysis. (QA) performance/ Usability engineering, POCs, QA automation and fixed requirement projects.Revenue % : 79.7 11.5 8.8 Specialists in discovering Multibagger stocks 19. Non- Linear Revenues IP (Intellectual Property) led revenues are non- Growth of High Margin IP Business linear where there is no co-relation of its growth25 with manpower growth or expense growth.20 Persistent having a product development15 culture has invested significant amount of10 energy and time in building IP based products % IP in total like connectors and these have high margin of ~ 5 60% which will lead to higher ROEs. revenues 0 IP share in overall revenues is consistently Fy Fy Fy Fy Fy Fy Fy increasing and is expected to touch 20% before 07 08 09 10 11 12 152015. These IPs also help in differentiating(E) (E)Persistent with other TPVs.Persistent has been constantly spending approximately 5% of the technical time of building IP basedproducts and also investing 5% of its revenue for research.Persistent has a Sell With strategy where it ties-up with large ISVs and cross sells its IPs with the largecustomer base of the ISVs thus creating value. Persistent also helps the customers of ISVs likesalesforce.com to get on to its cloud platform.Persistent has Sell With tie-ups with Nokia and Salesforce.com vindicating its strong relationship. It hasalso re-selling partnerships where it adds value/ customizes the current product of client and re-sells it. Specialists in discovering Multibagger stocks 20. Inorganic GrowthDateAcquired Company RationaleOctober, 2005 Control NetDomain Based SkillsJuly, 2007Metrikus (Certain Assets)Domain Based SkillsOctober, 2009 Paxonix (Certain Assets) Exposure to their brand management solutions productFebruary, 2011Infospectrum Footprint in Europe, New clients, Exposure to newer domains like imageryMay, 2011 Agilent Technologies Increase presence in Life Sciences market and geographic expansion in EuropeFeb, 2012 Openwave Systems High Growth Location Business Persistent Management has been pragmatic in spending cash on acquisitions and at the same time hasbeen active in acquiring good assets which provide either technology skills, expansion to new geography ornew clients. Persistent has a very strong balance sheet with nearly 400 Crs of Cash & Equivalents + Net Current Assets.This cash can be used positively for acquiring good companies thus providing for inorganic growth. Specialists in discovering Multibagger stocks 21. Strong Clientele Clients with 5+ > 45% RevenueIn %Client Engagement SizeNosyears of Concentration relationshipLarge > $3 Mn 11 Top 1 16.1 Medium >$1 Mn & < $3 Mn 26 Repeat~ 91% Top 5 37.4 Small upto $1 Mn314Business Top 1048.6 Total 351% Of Revenues ~25% from Start-Ups Persistent over the years has built strong relationships with its customers and thus established a sense oftrust which will help it to scale the work done for clients and hence grow the clients accounts. Persistents quality of clients can be seen from all parameters like client diversification, relationshiptimeline and the percentage of repeat business. Persistent has nearly 40 clients who have a revenue of > 1 Bn $ and spend 10% of their revenue in R&D.These accounts can be mined strongly to grow the business and we are seeing indications of increasedmining from the inductions seen in Sales & Marketing areas which will help to farm the existing large clients. Persistent has increased the > $10 Mn clients from 1 in FY-10 to 5 in FY-12. Specialists in discovering Multibagger stocks 22. Investment Rationale Specialists in discovering Multibagger stocks 23. Competitive Advantage Independent SoftwareStart -Ups Vendors ( ISVs) PersistentPrivate Equity players Systems System Integrators Venture Capitalists Research InstitutionsPersistent has a very strong moat in the form of client stickiness which is very important in this businessbecause of the high level of sensitive work involved. The OPD Provider must have the trust of the client tomove up the value chain and get high engineered work.Persistents focus on OPD segment for the past two decades has enabled it build a strong relationship withseveral players involved in the segment which can be seen in the diagram above. A new player entering thespace cant build it easily and companies which intend to enter this space will have to make an acquisition ofthe existing player.Persistents work with start-ups help it to be at the forefront of emerging technology trends which help inbuilding quality IP products which can be leveraged while working with large enterprises.The time and energy invested by Persistent in creating IP based products which help in reducing the Time toMarket for developing products in certain focused verticals serve as a moat which is difficult to replicate. Specialists in discovering Multibagger stocks 24. Strong Volume Growth & Accolades Persistent System has seen very strong growth sequentially on the top line with average > 5% growth(Q0Q) for the past 10 quarters indicating strong demand. Persistent has been growing faster than theindustry at a very healthy pace for the past 5 years. Persistents management had been able to meet their guidance for FY-12 in spite of tough environmentconditions where almost every IT major missed their guidance or revised them downwards. Zinnov Management consulting, a leading globalization advisory firm in its global R&D service providerratings for the year 2010-11 has recognized Persistent as one of the leading service provide in two keyZinnov Zones of cloud computing and Software/ ISV R&D which recognizes the work of Persistent. Persistent in-line with its strategy of working with large enterprises has recently tied up with Nextel &Realcom to assist their product development. It has also tied up with IBM on Big Insights. Company isworking several high tech projects like robotics, Instrumentation etc.Persistent is a part of 1M/1M initiative which aims at helping 1 million entrepreneurs reach 1 million $revenue and this provides it a good platform for collaborating with small new age start-ups. Specialists in discovering Multibagger stocks 25. ConcernsMargins & Growth in Bottom Line: Bottom line growth lagging the top line growth has been a strong concern along with a dip in EBIDTA margin of around 390 bps. There are concerns on margins going forward but we still expect the company to maintain a healthy EBDITA of around 20% for next 3 yrs.Tax Rate: The big hit on the PAT margins this year came from the increase in tax rate from about 7% in Fy-11 to about 30% in Fy-12 due to the withdrawal of tax concessions on software exports. This is not a surprise and the management has been guiding it for a long time.Small Client Accounts: Another concern has been the small client account in spite of having strong clients and the management actions on this can be seen from the appointment of Mr. Hariharan, Mr. Ramnath Puranik, Mr. Micheal Kerr, Mr. Bradley Scott and Dr. Jorg Turmhoff over the past 3 years to improve the client relations and mine more business and the results have been encouraging.Wage Inflation: Wage Inflation has been witnessed by everyone in the Industry and we expect salary increments to come in the next 3 months which will have a small effect on margins.No Pan- Indian Presence: Persistent is more localized in Pune and is expanding in Nagpur and Goa. We expect the company to spread its geographical presence as the company grows.Attrition: It has been a very serious concern for the entire industry and Persistents salary increments will help it in at least maintaining the attrition rate at the current 19%. India with a large base of employees will be able to meet the demand arising out of hiring.H1 B Visa Issue: Persistent doesnt have a short term problem as it has enough visas but can be a problem in the future if the scenario doesnt change.Currency Risk: Foreign exchange change will have an impact on Persistent but over a period time it should able to manage the risk by proper hedging. Specialists in discovering Multibagger stocks 26. Margin Levers Persistent has sufficient margin levers to maintain the EBIDTA margins at around 20% in the form of, IP based products which have a margin of more than 60% are expected to increase which will enablebetter margins. Though IP revenue may be volatile on QoQ basis, it has tremendous potential in long run. Employee pyramid is broadening at the base and is expected to have higher utilization over the next fewquarters. This will accrue after the training of freshers. Yield from work will increase gradually in the long term as the company gets more high end work. DTC which can be expected to get implemented within the next 2 years will help in getting the tax ratedown by about 200 bps which will directly flow into the bottom line and boost the PAT margin. We are notconsidering it in our financial projections. Specialists in discovering Multibagger stocks 27. Financials Specialists in discovering Multibagger stocks 28. Earnings ProjectionY/E March ( Rs Cr)20102011 2012 2013 (E) 2014 (E)Revenue 601.2 7761006 1158.6 1309.2EBIDTA146 158196263.8301.7Pre-Tax Profit124 150195234.8268.7Profit after Tax (PAT) 115140141169.1196.1EPS (Rs)32.134.9 35.4542.2649.03Cash Profits149 182191232264Free Cash Flow47(95.3) 82.4 68.3 119.9EV/ EBIDTA7.8 7.26.44.43.7ROCE (%)17.519.3 23.2 24.3 23.5ROIC (%)45.734.1 26.6 27.3 30.5Book Value178.1 186.8216.7239.7284.2 Specialists in discovering Multibagger stocks 29. Management QualityShare JuneMar Dec Sep June Persistent is promoted by firstHolding % 20112011201020102010 generation technocrat entrepreneur Dr. Anand Deshpande who is an activePromoters 38.95 38.95 38.95 38.89 38.88member of CII.FII 2.676.286.126.959.40 It is a professionally run organization with high focus on corporate governanceDII 30.31 26.54 25.99 24.60 21.71and strong board processes. More than 29% of its employees areNotable Investors Sharepost-graduates with strong track record.Holding % Investors like Intel have been with the company for more thanNorwest Venture 13.51 10 years and the employees are rewarded well with ESOPs.Partners (NVP)Existing investors holding to the stock for several years speaksEmployees ESOP8.95for the quality of the company.Trust Management wants to surpass the guidance given by themGabriel Ventures4.86and earn investors respect as it is a newly listed company.Intel Capital 2.29 Company has been profitable since its inception and has beendoing CSR activities for the past several years. Specialists in discovering Multibagger stocks 30. Attractive Valuations Hexaware Patni Polaris Mindtree PersistentTop-line growth for past 3 7.99 4.6 1326.8218.8years % CAGREBIDTA Margins ( FY 11) %13.4 16.66 17.113.4 27.2P/E (TTM)11.5810.25.4 11.9 10.52 Since, there are not any pure-play OPD companies in the listed space we are comparing Persistent with themidcap IT space. It can be seen from the table that Persistent has been quoting at wonderful valuations inspite of having better parameters than the mid-cap IT space. Persistent has a healthy dividend payout ratio of 18% and the stock is currently quoting at a dividend yieldof 2.4% and P/B of 1.15 which is very cheap. Mindtree acquired Aztecsoft, a struggling pure play OPD player in 2008 at a valuation of around 360 Crwhich had a top line of 60 Million $ and even posted quarterly losses just before its acquisition. Business competitors of Persistent includes the captives of large ISVs and pure play OPD players which areheld privately like Global Logic which is backed by Sequoia Capital. Specialists in discovering Multibagger stocks 31. Conclusion Specialists in discovering Multibagger stocks 32. Price chart Persistent Systems came out with an IPO on Mar, 2010 at 310/ share and was subscribed by over 93 timesand the demand was very high in the Qualified Institutional Buyer (QIB) with over 144 times subscription.The share opened in the market at a price of over 400 Rs. It soon went onto touch new highs of over 480 but started to decrease because of the margin pressuresfaced by the company and the general market conditions after Nov, 2010. After the correction, Persistent is available at wonderful valuations and an Investor can expect to generategood returns by adding Persistent to his portfolio. Persistent is the best pick in the mid-cap IT space and willoutperform the sector returns. Specialists in discovering Multibagger stocks 33. ConclusionPersistent Systems is a niche IT play on the growing OPD market. The trends are pretty strong andpersistent will continue to grow at a healthy pace considering its strong clientele and thought leadership inemerging technologies. Moreover, with the increased dependence on Technology across Industries anddisruptive trends is resulting in good business prospects for Persistent Systems.OPD growth is expected to be higher than the IT services growth for at least the next three years andconsidering the competitive advantage of Persistent, it must be able to seize the opportunities which arecoming along its way in a profitable manner. Persistent Systems benefits from Mobile Revolution, IPAD/Tablets penetration and huge grow of analytics using data like Social Media including Facebook and Twitter.Considering the quality of earnings, niche space, strong management, good clientele and healthy balancesheet, we feel that the company must trade at a premium to other mid-cap IT players. The company is alsoquoting at a valuation discount of more than 45% with the bigger IT players which can be expected todecrease by at least a few percentage points.The company is presently quoting at a forward P/E of 5.89 and considering the earnings growth thecompany can easily command a valuation of at least 14 on forward P/E and this re-rating will lead to goodgains on the counter which can be expected in coming months. Moreover the continuous pressure on Rupeewill benefit in expanding its margins further and we may revise estimated based on Rupee movement.A Quality company whose ROCE is over 20% is available at around 1X forward Book which is cheap byany parameters in spite of above average fundamentals and growth prospects. But considering the qualityof the company, it can be held as a long term holding in ones portfolio. Persistent can deliver consistentgrowth and is definitely a blue chip stock in the making. Specialists in discovering Multibagger stocks 34. Sit back and Relax while your Moneyworks Hard for you A Fund which isbacked by the Best Equity ResearchA Fund which invests in Strong secular growthcompanies which will be HBJ Capital Ventures LLP the leaders of the NextBull Market ! - Your Partner in Wealth Creation For additional Details, Call us - +91-9886736791 35. THANK YOU Specialists in discovering Multibagger stocks