ZENSARTECH - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:02 am

Swing Trade Rating: 4.0

📊 ZENSARTECH shows strong fundamentals with ROCE (24.6%) and ROE (20.2%), supported by low debt (0.02) and a healthy dividend yield (1.75%). Valuation is fair with a P/E of 27.0 compared to industry average of 26.4, and PEG ratio of 1.19 suggests growth is reasonably priced. Technically, the stock is trading close to both 50 DMA (747 ₹) and 200 DMA (766 ₹), indicating consolidation. RSI at 48.3 is neutral, leaving room for upside. Despite a slight sequential PAT decline (172 Cr. to 153 Cr.), quarterly profit variance (+31.5%) shows resilience. This makes ZENSARTECH a good candidate for swing trading.

✅ Optimal Entry Price: 735–745 ₹ (near DMA support)

🚪 Exit Strategy (if already holding): Consider exit near 780–800 ₹ (resistance zone), or if RSI rises above 60.

Positive

• 📈 Strong ROCE (24.6%) and ROE (20.2%) highlight efficient capital use.
• 💰 Low debt-to-equity (0.02) ensures financial stability.
• 💹 Dividend yield (1.75%) provides shareholder return.
• 📊 Quarterly profit variance (+31.5%) shows earnings resilience.

Limitation

• ⚠️ Sequential PAT decline from 172 Cr. to 153 Cr. raises caution.
• 📉 Trading near DMA 50 & DMA 200 indicates consolidation rather than strong momentum.
• 📊 52w Index at 45.4% shows moderate underperformance compared to broader market.
• 📉 MACD (-3.71) reflects weak short-term momentum.

Company Negative News

• 📉 FII holding decreased (-1.26%), showing reduced foreign investor confidence.

Company Positive News

• 📈 DII holding increased (+1.72%), reflecting strong domestic institutional support.
• 💹 EPS at 27.5 ₹ reflects solid earnings power.

Industry

• 🏭 Industry P/E at 26.4 is in line with ZENSARTECH’s valuation, suggesting fair pricing.
• 📊 IT services sector outlook remains positive, driven by digital transformation and global demand.

Conclusion

⚖️ ZENSARTECH is a good swing trade candidate with strong fundamentals and fair valuation. Entry near 735–745 ₹ offers tactical opportunity, while exit near 780–800 ₹ is prudent. Traders should maintain strict stop-loss discipline due to consolidation and short-term momentum weakness.

Would you like me to extend this into a peer benchmarking overlay so you can compare ZENSARTECH against other IT mid-cap peers like Coforge, Mphasis, and Persistent Systems for relative strength and valuation positioning?