Prabhudas Lilladher Recommends 'BUY' on Persistent Systems; Sets Target at Rs 7360

• Prabhudas Lilladher recommends a 'BUY' rating for Persistent Systems with a target price of Rs 7360.
• Persistent Systems' Q3 revenue performance (+4.1% QoQ CC) exceeded estimates, driven by broad-based growth across verticals.
• The company's focus on data and AI-led product engineering, along with early investments in IPs like Sasva, is yielding better growth opportunities and productivity.
• Management aims for revenue milestones of USD2 billion by FY27E and USD5 billion by FY30E.
• Despite a Q3 wage hike, margins were maintained due to an IP-led deal with upfront revenue recognition.

Why It Matters: Prabhudas Lilladher maintains a 'BUY' on Persistent Systems, citing strong growth and strategic investments.