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“Two Indian IT stocks, Aurion Pro & Persistent Systems, are 25-30% below 52-week highs but show strong growth, AI focus, and solid financials. Learn more.”
2 Indian IT Stocks Trading 25% Below 52-Week Highs But Showing Strong Fundamentals
The Indian IT sector has been under pressure recently due to global demand slowdown, spending cuts, and macroeconomic headwinds. However, some companies still have solid balance sheets, strong growth pipelines, and are trading well below their 52-week highs — potentially offering long-term opportunities for investors.
Today, we will look at two such IT companies — Aurion Pro Solutions and Persistent Systems — that are currently available at attractive valuations but have a robust business model, impressive order books, and a focus on emerging areas like AI, automation, and digital transformation.
1️⃣ Aurion Pro Solutions – Building AI-Native Banking & Fintech Products
Founded in 1997, Aurion Pro Solutions is a global tech player that focuses on software products and consulting for the BFSI (Banking, Financial Services & Insurance) sector. The stock is currently down 29.4% from its 52-week high, making it an attractive candidate for investors looking for potential value plays.
Business Verticals & Revenue Mix
Aurion Pro operates primarily in two verticals:
- Banking & Fintech (57% Revenue Contribution): Provides automation tools for retail and wholesale banking, capital markets, and treasury — including transaction banking platforms, queue management systems, and self-service tools.
- Technology Innovation Group (43% Revenue Contribution): Offers smart mobility, digital supply chain financing, and data center services.
The company serves 350+ clients across 14 countries, with over 90% of its revenue coming from India and the Asia-Pacific region.
Financial Performance – FY26 Q1
- Revenue: ₹336.8 Cr (up 28.7% YoY from ₹261.6 Cr)
- Banking Segment: ₹192 Cr, growing 31% YoY, driven by strong order book execution and new customer wins.
- Operating Profit: ₹68.16 Cr, up 22.8% YoY (OPM at 20.24%, slightly lower due to higher expenses).
- Net Profit: ₹50.6 Cr, up 13.5% YoY.
Management has guided for 20–22% EBITDA margin and 15–16% PAT margin going forward. A key driver is its integration with Arya.AI, allowing Aurion Pro to deliver AI-native enterprise solutions rather than simple API-based integrations.
Growth Outlook
- FY26 Revenue Growth Target: Over 30% YoY.
- Order Book: ₹1,400 Cr, providing strong visibility.
- Focus Areas: AI-led origination systems, loan management platforms, and expansion of transaction banking offerings.
Key Risks
- Short-term margin pressure due to heavy investment in sales and R&D.
- Execution risk as new sales teams in Europe, North Asia, and Africa may take 12–18 months to deliver meaningful revenue.
- High attrition (30.48% for employees with <4 years tenure) vs industry average of 15%.
- Working capital intensive model with DSO still higher than industry median.
2️⃣ Persistent Systems – Riding the AI & Digital Transformation Wave
Persistent Systems is a leading IT services company that helps enterprises modernize, automate, and embed AI into their workflows. The stock is down 25% from its 52-week high, offering investors a chance to accumulate a high-quality midcap IT stock at a reasonable valuation.
Business Vertical & Client Mix
- BFSI (33.9% Revenue): Cloud banking, loan management, insurance claims processing.
- Healthcare & Life Sciences (25.3% Revenue): Mobile health solutions, revenue cycle management.
- Software, High-Tech & Emerging Industries (40.8% Revenue): Product engineering and platform development.
Persistent has a strong global presence in 21+ countries, with 80% of revenue coming from North America. Its client list includes five of the top five global tech companies, four of the top five US & India banks, and 20 Fortune 50 companies.
Financial Performance – FY26 Q1
- Revenue: ₹3,334 Cr (up 21.8% YoY).
- Operating Profit: ₹612 Cr (up 34.5% YoY), OPM improved to 18.4%.
- Net Profit: Grew 38.8% YoY, with NPM improving to 12.75%.
- Bookings: Total Contract Value (TCV) ~₹45,000 Cr; new bookings ~₹3,000 Cr.
The management aims for ₹17,000 Cr revenue by FY27, implying a 19% CAGR — a feasible target considering the last three-year CAGR has been 28%.
Strategic Strengths
- AI & Data Partnerships: With Snowflake, DataBricks, and other hyperscalers to create cross-sell opportunities.
- Platform-Led Growth: SS 3.0 initiative aims to boost productivity and digital trust.
- Client Growth: Top 100 clients grew 22.4% YoY, indicating deeper penetration.
Risks
- Dependence on North America (80% Revenue): Currency fluctuations or taxation policy changes could impact performance.
- Rising Attrition: 13.9% in Q1 FY26, up from 11.9% a year ago.
- Cash Flow Softness: CFO declined 11.1% despite profit growth, mainly due to working capital changes.
Final Words
Both Aurion Pro Solutions and Persistent Systems are trading significantly below their 52-week highs but have robust business models, strong order books, and a clear focus on AI, automation, and platform-led growth.
- Aurion Pro is a differentiated play in the BFSI tech automation space, with a focus on building enterprise-grade AI-native solutions.
- Persistent Systems is a proven execution-driven company with strong global client relationships and a solid pipeline.
However, investors must consider execution risks, attrition levels, working capital cycles, and valuation multiplesbefore investing.
These two companies can be a good fit for long-term investors seeking midcap IT exposure and willing to ride through short-term volatility for potentially strong compounding returns.
Disclaimer: This article is for educational purposes only and should not be considered financial advice. Please consult your financial advisor before making investment decisions.
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