ZENSARTECH - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.4
| Stock Code | ZENSARTECH | Market Cap | 12,703 Cr. | Current Price | 558 ₹ | High / Low | 895 ₹ |
| Stock P/E | 19.5 | Book Value | 141 ₹ | Dividend Yield | 2.33 % | ROCE | 24.6 % |
| ROE | 20.2 % | Face Value | 2.00 ₹ | DMA 50 | 611 ₹ | DMA 200 | 703 ₹ |
| Chg in FII Hold | -1.50 % | Chg in DII Hold | 0.88 % | PAT Qtr | 181 Cr. | PAT Prev Qtr | 153 Cr. |
| RSI | 42.7 | MACD | -14.5 | Volume | 2,34,315 | Avg Vol 1Wk | 5,12,886 |
| Low price | 528 ₹ | High price | 895 ₹ | PEG Ratio | 0.86 | Debt to equity | 0.02 |
| 52w Index | 8.23 % | Qtr Profit Var | 18.0 % | EPS | 27.9 ₹ | Industry PE | 20.8 |
📊 ZENSARTECH shows moderate potential for swing trading. The RSI at 42.7 indicates neutral momentum, while the MACD is negative (-14.5), reflecting bearish signals. The stock is trading below both its 50 DMA (611 ₹) and 200 DMA (703 ₹), showing technical weakness. Valuation is fair (P/E 19.5 vs industry 20.8), and fundamentals are strong with ROCE at 24.6% and ROE at 20.2%. Quarterly profits improved (181 Cr. vs 153 Cr.), and EPS at 27.9 ₹ supports valuation. Institutional activity is mixed, with FIIs reducing (-1.50%) and DIIs increasing (+0.88%). Overall, this is a cautious swing candidate with potential upside if momentum stabilizes.
💡 Optimal Entry Price: Around 545–560 ₹ (near support zone above 528 ₹).
📈 Exit Strategy if Holding: Consider exiting near 610–620 ₹ (close to 50 DMA resistance) unless momentum strengthens further.
Positive
- Strong ROCE (24.6%) and ROE (20.2%) show excellent efficiency.
- Quarterly PAT improved (181 Cr. vs 153 Cr.).
- EPS at 27.9 ₹ supports valuation stability.
- Dividend yield of 2.33% provides shareholder returns.
- Low debt-to-equity ratio (0.02) ensures financial stability.
Limitation
- Stock trading below DMA 50 and DMA 200, showing bearish technicals.
- MACD negative (-14.5), reflecting weak momentum.
- Volumes below weekly average, showing reduced trader interest.
Company Negative News
- FII holdings reduced (-1.50%), showing weaker foreign investor confidence.
- Weak 52-week performance (Index only 8.23%).
Company Positive News
- DII holdings increased (+0.88%), showing domestic institutional support.
- Quarterly profits improved steadily.
Industry
- Industry P/E at 20.8 is slightly higher than ZENSARTECH’s, suggesting fair valuation.
- IT sector remains stable with moderate growth outlook.
Conclusion
⚖️ ZENSARTECH is fundamentally strong with improving profits and fair valuation, but technically weak with bearish signals. While a short-term bounce is possible, risk remains due to weak momentum and reduced foreign support. Entry near 545–560 ₹ with an exit around 610–620 ₹ is advisable, but strict risk management is essential.