Metrics TCS Persistent
P/E 25.00 22.00
Pr/BV 11.00 5.00
Div Yield 1.28 1.65
Gross Margin 31.62 25.74
Net profit Margin 27.25 20.35
ROCE 53.39 28.38
5 Year Sales Growth 24.08 17.90
5 Year Profit Growth 26.00 11.14
3 Year Sales Growth 29.00 24.00
3 years Profit Growth 28.00 29.00
Above is some comparison that i had done between TCS and Persistent.
Persistent being a small company definitely has reliance on its top clients and has 35 % of its revenue from its top client based on the reports that i have read. On the industries contribution majority of their revenue comes from Infrastructures and systems.
The reason i invested in persistent is because of the third question you asked me. The SMAC is the happening thing in the IT industry and as per gartner this is next billion dollar opportunity in the IT Space. Persistent from the beginning has been a company which was working with many product companies like Saleforce etc to enhance thier product and started investing in SMAC capabilities from 2007. It has also acquired 2 companies in Clould Space in last couple of years .Peristent as company has done this whole digitization within their company for thier employees itself which i fell even bigger company like Infosys has done to that exent, which proves it defiantly has execution capabiltiies
Persistent sales is around 310 millions and with the growth in SMAC sector it will have a good growth rate. The question i asked myself was with TCS around 16 Bn revenue and persistent with 310 million revenue who can double itself revenue faster. I feel because of the investment in SMAC persistent will be able to grow faster than TCS in next 3- 5 Years because of sheer size .
I would like to know your thoughts or any other parameters that we would have to look at