Persistent Systems is a decent player in the IT industry with outsourced product development, testing and maintenance being their core business. It is a debt free company, operating in a niche segment within the IT space.
Recent valuations look in line with the market expectations and this is the reason PS will be range bound for the time being between 447 and 495. I do not see it breaking past this range in the next 3-6 months.
The recent spurt in TCS was primarily due to short covering and TCS with its strong presence Indian and African projects enjoy a certain amount of risk mitigation. In fact, the overall Indian IT space looks overbought and crowded. IT has long lost its status of being a multi bagger and with the recent rhetorics at US and elsewhere, it will be challenging for IT companies to meet the high growth expectations of the market.
Staying away from the IT space for now is advisable.
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