Is Zensar Tech. overvalued or undervalued?

Jul 22 2025 08:01 AM IST
share
Share Via
As of July 21, 2025, Zensar Technologies is considered overvalued with a PE ratio of 29.53 and an EV to EBITDA of 21.21, significantly higher than its peers TCS and Infosys, despite a strong year-to-date return of 12.63%.
As of 21 July 2025, Zensar Technologies has moved from a fair to an expensive valuation grade, indicating that the company is overvalued. The current PE ratio stands at 29.53, with a price-to-book value of 4.72 and an EV to EBITDA ratio of 21.21. These metrics suggest that the stock is priced higher relative to its earnings and book value compared to its peers.

In comparison, TCS, which is considered attractive, has a PE ratio of 23.19 and an EV to EBITDA of 16.36, while Infosys, rated as fair, has a PE of 24.64 and an EV to EBITDA of 16.05. This highlights that Zensar's valuation is significantly higher than that of its peers, reinforcing the conclusion of overvaluation. Despite a strong return of 12.63% year-to-date compared to the Sensex's 5.20%, the valuation metrics suggest that investors should exercise caution.
{{stockdata.stock.stock_name.value}} Live

{{stockdata.stock.price.value}} {{stockdata.stock.price_difference.value}} ({{stockdata.stock.price_percentage.value}}%)

{{stockdata.stock.date.value}} | BSE+NSE Vol: {{stockdata.index_name}} Vol: {{stockdata.stock.bse_nse_vol.value}} ({{stockdata.stock.bse_nse_vol_per.value}}%)


Our weekly and monthly stock recommendations are here
Loading...
{{!sm.blur ? sm.comp_name : ''}}
Industry
{{sm.old_ind_name }}
Market Cap
{{sm.mcapsizerank }}
Date of Entry
{{sm.date }}
Entry Price
Target Price
{{sm.target_price }} ({{sm.performance_target }}%)
Holding Duration
{{sm.target_duration }}
Last 1 Year Return
{{sm.performance_1y}}%
{{sm.comp_name}} price as on {{sm.todays_date}}
{{sm.price_as_on}} ({{sm.performance}}%)
Industry
{{sm.old_ind_name}}
Market Cap
{{sm.mcapsizerank}}
Date of Entry
{{sm.date}}
Entry Price
{{sm.opening_price}}
Last 1 Year Return
{{sm.performance_1y}}%
Related News