I would like to add my observations on Persistent.
IT is undergoing disruptive changes - where customers are demanding reduced prices on application development and maintenance services which has been long time revenue generator for Indian IT industry. Companies who are moving from this traditional model towards IP based and product model stand to gain in this changing scheme of things.
Coming to the point, Persistent is one of such company, which seems to have made good moves in right direction. Its tie up with IBM for AI based product offerings in terms of IBM Watson should gain better momentum going ahead. IBM Watson is a platform based on AI and cognitive science coupled with RPA (Robotic Process Automation) capabilities. Currently there is increasing demand for RPA, Cloud and AI capabilities and Persistent's alliance with IBM Watson - though with its own impact on OPM - would help it to gain more market in these areas.
In FY16-17-Q4, Digital revenues as identified by Persistent has gone up by about 9% QoQ and product based business (Accelerite) has demonstrated 7.7% QoQ growth. Some of these developments should help Persistent grow better than some of traditional IT companies.
We need to observe the margins carefully going forward. Margins (OPM) may take little longer time since company seems to be moving towards IP based revenue model which can affect OPM for some more quarters as per my experience in IT industry.
Disclosure: Invested at around 600 levels, and views could be biased.