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ZENSARTECH - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | ZENSARTECH | Market Cap | 13,172 Cr. | Current Price | 579 ₹ | High / Low | 895 ₹ |
| Stock P/E | 20.2 | Book Value | 141 ₹ | Dividend Yield | 2.24 % | ROCE | 24.6 % |
| ROE | 20.2 % | Face Value | 2.00 ₹ | DMA 50 | 613 ₹ | DMA 200 | 704 ₹ |
| Chg in FII Hold | -1.50 % | Chg in DII Hold | 0.88 % | PAT Qtr | 181 Cr. | PAT Prev Qtr | 153 Cr. |
| RSI | 49.5 | MACD | -15.2 | Volume | 10,48,234 | Avg Vol 1Wk | 5,15,401 |
| Low price | 528 ₹ | High price | 895 ₹ | PEG Ratio | 0.89 | Debt to equity | 0.02 |
| 52w Index | 13.9 % | Qtr Profit Var | 18.0 % | EPS | 27.9 ₹ | Industry PE | 20.9 |
📊 Financial Overview
- Revenue & Profitability: Quarterly PAT improved from 153 Cr. to 181 Cr., showing steady growth. EPS at 27.9 ₹ is strong.
- Margins & Returns: ROCE at 24.6% and ROE at 20.2% highlight excellent efficiency and shareholder returns.
- Debt: Debt-to-equity ratio of 0.02 indicates negligible leverage, ensuring financial stability.
- Cash Flow: Supported by profitability and low debt, enabling reinvestment capacity.
💹 Valuation
- P/E Ratio: 20.2 vs Industry PE of 20.9 → Fairly valued relative to peers.
- P/B Ratio: Current Price 579 ₹ vs Book Value 141 ₹ → Premium valuation.
- PEG Ratio: 0.89 → Attractive valuation relative to growth.
- Intrinsic Value: Current price offers fair value supported by strong fundamentals.
🏢 Business Model & Competitive Advantage
- IT services and digital solutions provider with global presence.
- Strong efficiency metrics (ROCE & ROE) reflect competitive advantage.
- Low debt enhances resilience and growth potential.
📈 Technicals & Entry Zone
- RSI at 49.5 → Neutral zone, neither oversold nor overbought.
- MACD negative (-15.2) → Weak momentum, short-term caution advised.
- Entry Zone: Attractive accumulation between 560–580 ₹.
- Long-Term Holding: Strong fundamentals make it a solid long-term hold despite short-term weakness.
✅ Positive
- High ROCE (24.6%) and ROE (20.2%) indicate excellent efficiency.
- Debt-to-equity ratio of 0.02 ensures financial resilience.
- PEG ratio of 0.89 suggests attractive valuation relative to growth.
- Dividend yield of 2.24% adds shareholder value.
⚠️ Limitation
- Stock trades at a premium to book value.
- MACD indicates weak momentum, short-term caution required.
- FII holdings decreased by 1.50%, showing reduced foreign investor confidence.
📉 Company Negative News
- FII holdings decreased by 1.50%, showing reduced foreign investor confidence.
- Stock has corrected from its 52-week high of 895 ₹ to current levels.
📈 Company Positive News
- Quarterly PAT improved from 153 Cr. to 181 Cr., showing earnings resilience.
- DII holdings increased by 0.88%, reflecting domestic institutional support.
- Dividend yield of 2.24% provides shareholder returns.
🏭 Industry
- Industry PE at 20.9 suggests sector trades at similar multiples.
- ZENSARTECH trades fairly valued, supported by strong fundamentals and efficiency metrics.
🔎 Conclusion
ZENSARTECH demonstrates strong fundamentals with excellent return ratios, low debt, and consistent profitability. Valuations are fair compared to industry peers, and the PEG ratio suggests attractive growth potential. Entry is favorable near 560–580 ₹ for long-term investors. Despite short-term technical weakness, the company remains a solid long-term hold backed by strong efficiency and operational resilience.