Before TCS Results, CLSA Places a High-Conviction Bet on

PERSISTENT

with TP of Rs 5659

As investors await the start of the IT earnings season with TCS results, global brokerage CLSA has expressed exceptional confidence in

, reiterating its High Conviction Outperform rating with a target price of ₹5,659. The brokerage believes that Persistent's proposed acquisition of Nagarro could become a major growth catalyst over the coming years. ##Why Is CLSA So Bullish? According to CLSA, Nagarro appears to be a strong strategic fit for 's long-term growth ambitions. The brokerage highlighted that management has provided multiple reasons supporting the acquisition and believes the combined entity could unlock significant growth opportunities. ##Margin Expansion Story CLSA expects the company to achieve: EBITDA Margins of 16–17% within the next 6–8 quarters. Improving margins are particularly important in the IT sector because they directly support earnings growth and valuation expansion. ##IT Stocks to Watch • • • • • Investors will closely monitor management commentary from upcoming IT earnings for signs of improving demand and deal wins. ##Bottom Line Ahead of TCS results, CLSA's strongest message in the IT space is clear: Persistent Systems remains a high-conviction idea. With expectations of mid-teens revenue growth, improving margins and earnings accretion from the Nagarro acquisition, the brokerage believes the company is well positioned for the next phase of growth.