Rs 20 Payout: January 31 Record Date; The Best IT Dividend Stock To Buy Now?

Global services and solutions provider Persistent Systems (BSE & NSE: PERSISTENT) offers enterprise modernisation and digital engineering to companies in a variety of sectors. The IT company, which employs more than 23,900 individuals across 19 countries, is a part of the MSCI India Index and is listed in several BSE indices, such as the S&P BSE 100 and S&P BSE SENSEX Next 50, as well as key indices of the National Stock Exchange of India, such as the Nifty Midcap 50, Nifty IT, and Nifty MidCap Liquid 15. The Dow Jones Sustainability World Index also includes persistent. According to the 2024 Brand Finance India 100 Report, Persistent is the IT services brand with the quickest rate of growth.

Persistent Systems Dividend

"We wish to inform you that the Board of Directors at its meeting held on Wednesday, January 22, 2025, has approved the payment of an Interim Dividend of INR 20 (INR Twenty) per Equity Share of INR 5 (Five) each for the Financial Year 2024-25," said Persistent Systems in a stock exchange filing.

For the purpose of the above-said dividend, the company has fixed Friday, January 31, 2025 as the record date.

Persistent Systems Financials

The December quarter performance of Persistent Systems, an information technology (IT) company, showed a 30.35% year-on-year (YoY) increase in its consolidated profit after tax (PAT) for the December 2024 quarter (Q3 FY25) to Rs 373 crore. The business declared a net profit of Rs 286 crore for the same quarter of the prior fiscal year. Operational revenue increased by 22.6% to Rs 3,062 crore during the quarter under review from Rs 2,498 crore during the same period last year. The EBIT for the quarter was Rs 455 crore, representing a 25% YoY growth.

The total contract value (TCV) and annual contract value (ACV) of the order booking for the quarter that concluded on December 31, 2024, were $594.1 million and $428.3 million, respectively.

Persistent Systems Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said, "Persistent Systems has shown a strong bullish move today, surging 11.89% and gaining 650 points intraday, forming a bullish engulfing pattern on the daily chart. This breakout from a falling trendline, accompanied by a significant surge in volume, indicates potential for further upside. With immediate support near 6,300, any pullback to this level can be seen as a buying opportunity, with a stop-loss at 5,700. The stock has set targets of 7,200 and 7,500 in the near future, driven by the positive technical setup."

"From a technical perspective, Persistent is trading above all key 20-EMA, 50-EMA, 100-EMA, and 200-EMA, which reinforces the strength of the bullish trend. The RSI stands at 54.54, showing upward momentum, while the Stochastic RSI has displayed a positive crossover from the oversold region, indicating further potential for price appreciation," the analyst said.

"On the fundamental side, the company has posted strong Dec-Quarter results, with a consolidated profit of 3.73 billion and revenue from operations at 30.62 billion. Additionally, Persistent has declared a 20 rupees per share dividend, adding further appeal to investors. The broader IT sector is also outperforming, providing additional tailwinds to Persistent's growth. With strong technicals and robust fundamentals, Persistent Systems presents a compelling case for both short-term traders and long-term investors, particularly with the ongoing strength in the IT sector," Mandar Bhojane commented.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns. in advises users to consult with certified experts before making any investment decision.