Jainee’s Coffee Can Portfolio on 12 January 2026
Persistent Systems – Coffee Can Matrix
About the Company
Persistent Systems Ltd is a global digital engineering and cloud transformation specialist with deep expertise in software product engineering, cloud, data & AI, and enterprise modernisation. Over the years, Persistent has successfully transitioned from a traditional IT services player to a high-growth, IP-led digital services company, catering largely to BFSI, healthcare, ISVs and technology-led enterprises.
The company’s business model is platform-centric, high-value and execution-driven, enabling it to deliver superior growth with healthy capital efficiency. Persistent is widely regarded as one of the best mid-cap IT compounders in India, combining strong client mining, repeat revenues, and disciplined capital allocation.
Coffee Can Matrix – Persistent Systems
| Parameter | Data / Interpretation |
|---|---|
| CMP (Rs.) | 6,417.00 |
| P/E Ratio | 60.84 → Premium valuation, reflects sustained high-growth visibility |
| Quarterly Net Profit (Rs. Cr.) | 471.47 |
| Quarterly Profit Growth (%) | 45.07% → Strong earnings momentum |
| Quarterly Sales (Rs. Cr.) | 3,580.72 |
| Quarterly Sales Growth (%) | 23.59% → Healthy demand across digital services |
| Sales CAGR (5 Years) | 27.34% → Excellent consistency in topline compounding |
| Profit CAGR (5 Years) | 32.77% → Superior earnings compounding |
| ROCE (%) | 30.44% → Very strong capital efficiency |
| All-Time High (Rs.) | 6,788.90 |
| RSI | 55.48 → Neutral, not overheated |
| 1-Week Return (%) | 2.03% |
| Volume Trend | Volumes broadly in line with 1-month average |
| MACD | 39.91 (vs 36.08) → Positive crossover, momentum intact |
Coffee Can Interpretation
👍 Positives (Coffee Can Strengths)
✔ Strong 5-year Sales CAGR of ~27% and Profit CAGR of ~33%, indicating high-quality growth
✔ ROCE above 30%, highlighting efficient capital deployment
✔ Digital engineering focus provides pricing power and sticky client relationships
✔ Healthy quarterly growth with profit growing faster than revenues, signalling operating leverage
✔ Balance of growth and margin sustainability makes it a rare IT compounder
⚠️ Considerations (Coffee Can Risks)
✖ Valuation remains optically expensive on P/E basis
✖ IT spending cycles and global macro can cause near-term volatility
✖ High expectations leave limited room for execution missteps
✖ Stock tends to correct sharply during sector-wide risk-off phases
Chanakya’s Coffee Can Conclusion
Persistent Systems fits the Coffee Can framework exceptionally well—strong and consistent growth, high ROCE, scalable digital business model, and proven execution over multiple cycles.
While near-term valuation may appear rich, judging Persistent purely on P/E is misleading. The company’s earnings compounding, margin resilience and capital efficiency justify premium multiples over long periods.
For investors with a 5–10 year horizon, Persistent Systems is best suited for Coffee Can portfolios, ideally accumulated during market corrections or periods of IT-sector pessimism rather than chased aggressively at peaks.
A high-quality “Buy-and-Hold Digital Compounder” for long-term portfolios.
For long-term study only. Not a buy/sell recommendation.
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