ZENTEC - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 2.5

📊 Analysis Summary

Zensar Technologies Ltd (ZENTEC) is currently not a favorable candidate for swing trading due to extremely weak technical indicators and a sharp decline in quarterly profits. While the company has excellent long-term fundamentals and attractive valuation metrics, the short-term setup is bearish and lacks momentum.

✅ Strengths

Fundamentals

ROCE: 36.7% & ROE: 26.1% — outstanding operational efficiency.

EPS: ₹27.8 — strong earnings base.

Debt to Equity: 0.04 — virtually debt-free.

Valuation

PEG Ratio: 0.14 — highly attractive relative to growth.

P/E: 57.8 vs Industry PE: 68.0 — slightly undervalued.

FII Holding ↑ 0.09%

Mild foreign investor interest.

⚠️ Weaknesses

Technical Indicators

RSI: 24.5 — deeply oversold, no signs of reversal.

MACD: –48.3 — strong bearish momentum.

Price below DMA 50 (₹1,844) and DMA 200 (₹1,698) — clear downtrend.

Earnings Decline

PAT Qtr: ₹47.8 Cr. vs ₹101 Cr. — significant drop.

Qtr Profit Var: –37.8% — weak earnings momentum.

Volume Weakness

Current volume (80.8K) < Avg volume (1.77L) — low trading interest.

DII Holding ↓ 0.72%

Domestic institutions reducing exposure — bearish sentiment.

52W Index: 39.3%

Underperforming relative to 52-week high — weak relative strength.

🎯 Optimal Entry Price

Entry Zone: ₹1,550–₹1,580

Near recent support — only for speculative bounce.

Wait for Confirmation

RSI > 35 and MACD flattening with volume recovery.

🚪 Exit Strategy (If Already Holding)

Exit Target: ₹1,700–₹1,750

Near DMA 200 — short-term resistance zone.

Stop Loss: ₹1,500

Below recent support — risk control.

Would you like to explore other mid-cap IT stocks with stronger technical setups and consistent earnings growth for safer swing trades?

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