Stock Price Movement and Market Context
On 24 Feb 2026, Zensar Technologies Ltd’s share price fell sharply, hitting an intraday low of Rs.546.85, representing a 4.18% drop from the previous close. The stock underperformed its sector, which itself declined by 3.06%, with Zensar lagging by an additional 0.97%. The day’s overall change for the stock was a negative 3.10%, reflecting investor caution.
The broader market also faced headwinds, with the Sensex opening 242.12 points lower and closing down by 510.81 points at 82,541.73, a 0.9% decline. Despite this, the Sensex remains within 4.38% of its 52-week high of 86,159.02, indicating that the market downturn was more pronounced for Zensar Technologies relative to the benchmark index.
Zensar’s stock is currently trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a sustained downtrend. This technical positioning suggests that the stock has struggled to regain momentum over multiple time frames.
Long-Term Performance and Valuation Metrics
Over the past year, Zensar Technologies Ltd has delivered a total return of -27.16%, a stark contrast to the Sensex’s positive 10.90% return and the BSE500’s 13.60% gain. This underperformance highlights the stock’s relative weakness within the broader market context.
The stock’s 52-week high was Rs.894.75, indicating a substantial decline of nearly 39% from that peak. This drop reflects a combination of factors including subdued growth and valuation pressures.
Despite the price decline, the company’s financial fundamentals present a mixed picture. Net sales have grown at a modest annual rate of 7.36% over the last five years, which is considered moderate growth within the IT software sector. Profitability metrics show strength, with a return on equity (ROE) of 15.69%, indicating efficient use of shareholder capital.
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Financial Highlights from Recent Quarterly Results
The company reported its highest quarterly net sales of Rs.1,430.70 crores in the December 2025 quarter. Profit before tax excluding other income (PBT less OI) reached Rs.227.30 crores, also a record high for the quarter. Net profit after tax (PAT) stood at Rs.218.95 crores, marking the highest quarterly profit to date.
These figures indicate that while the stock price has declined, the company’s earnings have shown resilience and growth, with profits rising by 17.5% over the past year. The price-to-book value ratio stands at 3, suggesting the stock is trading at a premium relative to its book value, which is higher than the average historical valuations of its peers.
Capital Structure and Institutional Ownership
Zensar Technologies maintains a conservative capital structure with an average debt-to-equity ratio of zero, reflecting a debt-free balance sheet. This low leverage reduces financial risk and provides flexibility in capital allocation.
Institutional investors hold a significant 34.92% stake in the company, indicating confidence from entities with extensive resources and analytical capabilities. This level of institutional ownership often correlates with thorough fundamental analysis and long-term investment horizons.
Sectoral and Market Comparisons
Within the IT - Software sector, Zensar Technologies has underperformed relative to peers and the broader market indices. The sector itself declined by 3.06% on the day, while Zensar’s stock fell by 4.18%, underscoring its relative weakness.
The Sensex’s technical indicators show it trading below its 50-day moving average, though the 50-day average remains above the 200-day average, suggesting the broader market is in a cautious but not fully bearish phase. In contrast, Zensar’s stock is below all major moving averages, highlighting its more pronounced downtrend.
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Mojo Score and Analyst Ratings
Zensar Technologies currently holds a Mojo Score of 47.0, categorised as a Sell grade. This rating was downgraded from Hold on 12 Jan 2026, reflecting a reassessment of the company’s growth prospects and market performance. The market capitalisation grade is rated at 3, indicating a mid-tier valuation relative to market peers.
The downgrade aligns with the stock’s recent price action and relative underperformance, despite the company’s positive earnings growth and strong return on equity.
Summary of Key Metrics
To summarise, Zensar Technologies Ltd’s stock has reached a 52-week low of Rs.546.85, down significantly from its 52-week high of Rs.894.75. The stock’s one-year return of -27.16% contrasts sharply with the Sensex’s 10.90% gain. While the company demonstrates solid profitability with an ROE of 15.69% and a debt-free balance sheet, its sales growth remains moderate at 7.36% annually over five years.
The stock trades at a premium price-to-book ratio of 3 and has a PEG ratio of 1, indicating valuation in line with earnings growth. Institutional ownership at nearly 35% reflects confidence from professional investors despite the recent price decline.
Overall, the stock’s current valuation and technical indicators reflect a cautious market stance amid broader sectoral and market pressures.
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