ZENTEC - Fundamental Analysis: Financial Health & Valuation

📊 Financial Overview: Zensar Technologies Ltd displays excellent operational efficiency with a ROCE of 32.9% and ROE of 24.6%, well above industry norms. The company is debt-free, enhancing its financial stability. EPS stands at ₹22.9, though the quarterly profit declined by 29.2% to ₹46.2 Cr, indicating short-term pressure.

💰 Valuation Metrics: The stock trades at a P/E of 59.2, slightly below the industry average of 67.4, suggesting fair valuation. The P/B ratio of ~6.95 (₹1,356 / ₹195) is elevated, but justified by strong returns. The PEG ratio of 0.15 indicates undervaluation relative to growth. Dividend yield is modest at 0.15%.

🏢 Business Model & Competitive Edge: Zensar is a digital solutions and technology services company focused on cloud, data engineering, AI, and experience design. Its diversified client base across geographies and verticals, combined with a focus on innovation and automation, gives it a competitive edge. The company is part of the RPG Group, adding credibility and strategic backing.

📉 Entry Zone Recommendation: With an RSI of 40.6, the stock is nearing oversold territory. A favorable entry zone lies between ₹1,250–₹1,300, below both DMA levels (₹1,460 and ₹1,580). MACD at -32.3 signals bearish momentum, suggesting a potential accumulation phase.

📈 Long-Term Holding Guidance: Zensar Technologies is a strong long-term candidate for investors seeking exposure to digital transformation and IT services. Hold with a 5+ year horizon, focusing on margin recovery, client wins, and innovation-led growth.