ZENSARTECH - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.2

📊 Core Financials Overview

Profitability

ROCE: 24.6% and ROE: 20.2% — excellent, indicating strong capital efficiency and shareholder value creation.

EPS: ₹25.9, with PAT at ₹172 Cr. (slightly down from ₹147 Cr.) — a 3.86% decline, likely due to margin normalization or seasonal factors.

Debt-to-equity: 0.02 — virtually debt-free, supporting long-term financial resilience.

Dividend Yield: 1.53% — decent, offering passive income while retaining growth potential.

Institutional Sentiment

FII holding declined (-0.42%), while DII increased (+0.63%) — mixed sentiment, with domestic investors showing confidence.

💰 Valuation Metrics

Metric Value Insight

P/E Ratio 32.9 Slightly above industry average (30.0) — reflects premium for quality and growth.

P/B Ratio ~6.25 Elevated, typical for high-margin tech firms.

PEG Ratio 1.44 Reasonable — valuation aligns with expected growth.

Intrinsic Value ~₹820–₹840 (est.) Current price of ₹850 is slightly above fair value.

🧠 Business Model & Competitive Edge

Core Operations: Zensar Technologies Ltd. is a digital solutions and technology services company offering cloud, data engineering, AI, and enterprise platforms.

Strengths

Strong presence in manufacturing, retail, and BFSI verticals.

High return metrics and low leverage.

Consistent reinvestment in digital transformation and innovation.

Challenges

Slight quarterly profit contraction.

RSI at 64.8 — nearing overbought territory, MACD at 7.59 — bullish momentum.

Volume spike suggests speculative interest, but trend needs confirmation.

📈 Entry Zone & Technicals

DMA 50: ₹807, DMA 200: ₹778 — price is above both, indicating bullish trend.

RSI: 64.8 — approaching overbought.

MACD: 7.59 — bullish crossover.

📌 Entry Zone: ₹800–₹830 — ideal for accumulation on dips.

🕰️ Long-Term Holding Guidance

2025 Target: ₹731–₹990

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2026 Target: ₹990–₹1,054

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2030 Target: ₹1,300+ (based on compounding ROE and sector growth)

Holding Strategy: Zensar is a high-quality mid-cap IT play with strong fundamentals, low debt, and scalable digital capabilities. Suitable for long-term investors seeking exposure to India’s tech services and global digital transformation. Accumulate during technical weakness and hold through cycles.

You can explore Zensar’s live financial dashboard

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and long-term forecast analysis

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for deeper insights.

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www.stocks-buy.com

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trendlyne.com

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