Broker's call: Persistent Systems (Buy) | Updated on CMP: ₹1961.10 Persistent Systems Ltd is on track to reach the $1 billion revenue milestone by FY25 (implies nearly 15.4 per cent CAGR over FY21-25) on the back of continued strong traction in the Technology Services business, anticipated recovery in the Alliance business and M&A. The Technology Services business is likely to sustain a 3.5-5 per cent CQGR in the medium term (4.4 per cent in last 6 qtrs), aided by strong deal wins (2.1x book-to-bill in Q3), healthy deal pipeline, growing annuity revenue (3/4th of revenue) and cross-selling opportunities across the client base. PSYS has over $250 million cash on the books and is actively pursuing M&A to augment its domain capabilities, digital offerings and expand presence in Europe. It aims to drive Europe revenue to 15-18 per cent of total revenue in 3-4 years from less than 10 per cent currently.