ZENSARTECH - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.0

Zensar Technologies (ZENSARTECH) presents a compelling case for long-term investors seeking high-margin exposure in IT services. With healthy return ratios, clean debt metrics, and stable profitability, it strikes a balance between quality and growth — though valuation hints at a near-full pricing.

🧾 Core Financial Health

Return Ratios

ROCE: 21.3%, ROE: 16.4% — strong capital efficiency; top-quartile performance in IT mid-caps

EPS: ₹29.7 — consistent profit generation reflects business stability

Quarterly Performance

PAT Q-o-Q: ₹176 Cr → ₹182 Cr — steady rise in earnings

Profit Variation: +15.3% — growth trajectory intact

Balance Sheet

Debt-to-Equity: 0.03 — virtually debt-free, enables resilience during cyclical downturns

Dividend Yield: 1.61% — modest shareholder rewards

📊 Valuation Snapshot

Metric Value Perspective

P/E Ratio 27.2 Slightly below industry average (29.1); fair valuation

P/B Ratio ~4.51 Reflects premium for ROE and earnings strength

PEG Ratio 1.81 A bit stretched — price exceeds growth pace

The PEG ratio signals cautious optimism. Valuation isn’t extreme, but upside is somewhat capped without acceleration in earnings.

🖥️ Business Model & Competitive Edge

Core Segment: Digital transformation, cloud services, enterprise automation

Clients: Mix of US, Europe, BFSI, retail, and manufacturing verticals

Strengths

Investment in experience-led engineering (CX + tech fusion)

Stable margins across geographies

Risks

High attrition in tech sector

Sluggish global IT demand can slow deal flows

📉 Technical Trends

RSI: 43.9 — neutral zone, weak momentum

MACD: -7.69 — bearish signal; near-term weakness

DMA Overview

CMP below 50-DMA (₹819) but above 200-DMA (₹769) — consolidation phase

52W Index: 60.7% — recovered well from ₹536 lows, but shy of ₹985 highs

🎯 Entry Zone & Outlook

Suggested Entry: ₹780–₹800 — slightly below CMP, near technical support

Outlook (12–18 months): ₹920–₹980 if macro tailwinds and margin preservation hold

Investor Profile

Fit for steady-growth seekers with tech appetite

Conservative investors should look for dips near ₹770 for stronger risk-reward

Watch for quarterly order book and hiring trends

If you'd like to pit Zensar against peers like Coforge, LTI Mindtree, or Persistent Systems on metrics like revenue growth, margin profile, or deal wins — I can run a side-by-side match-up too. Ready when you are 💡📊🖱️.

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