Zensar Technologies Ltd (ZENSARTECH) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Netweb Technol.

Sagility

Sonata Software

Zensar Tech.

KPIT Technologi.

Birlasoft Ltd

Intellect Design

Affle 3i

Cyient

Black Box

Tata Technolog.

Why is Zensar Technologies Ltd ?

High Management Efficiency with a high ROE of 15.69%

Company has a low Debt to Equity ratio (avg) at 0 times

Poor long term growth as Net Sales has grown by an annual rate of 7.36% over the last 5 years

Positive results in Dec 25

NET SALES(Q) Highest at Rs 1,430.70 cr
PBDIT(Q) Highest at Rs 249.90 cr.
OPERATING PROFIT TO NET SALES(Q) Highest at 17.47%

With ROE of 16.4, it has a Fair valuation with a 2.9 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -21.91%, its profits have risen by 17.5% ; the PEG ratio of the company is 1

High Institutional Holdings at 34.92%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Underperformed the market in the last 1 year

Even though the market (BSE500) generated negative returns of -2.67% in the last 1 year, its fall in the stock was much higher with a return of -21.91%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zensar Tech. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Zensar Tech. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zensar Tech.

-21.91%

-0.69

31.64%

Sensex

-5.02%

-0.39

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.36%

EBIT Growth (5y)

10.66%

EBIT to Interest (avg)

30.82

Debt to EBITDA (avg)

0.35

Net Debt to Equity (avg)

-0.44

Sales to Capital Employed (avg)

1.37

Tax Ratio

24.11%

Dividend Payout Ratio

45.41%

Pledged Shares

Institutional Holding

34.92%

ROCE (avg)

27.67%

ROE (avg)

15.69%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.91

EV to EBIT

13.17

EV to EBITDA

11.80

EV to Capital Employed

4.43

EV to Sales

1.88

PEG Ratio

0.95

Dividend Yield

0.44%

ROCE (Latest)

31.74%

ROE (Latest)

16.37%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

16What is working for the Company

NET SALES(Q)

Highest at Rs 1,430.70 cr

PBDIT(Q)

Highest at Rs 249.90 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 17.47%

PBT LESS OI(Q)

At Rs 227.30 cr has Grown at 26.56%

PAT(Q)

At Rs 218.95 cr has Grown at 37.0%

EPS(Q)

Highest at Rs 8.82

-1What is not working for the Company

NO KEY NEGATIVE TRIGGERS

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Here's what is working for Zensar Tech.

Net Sales - Quarterly

Highest at Rs 1,430.70 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 227.30 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 218.95 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 249.90 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 17.47%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 227.30 cr has Grown at 26.56%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 218.95 cr has Grown at 37.0%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 8.82

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for Zensar Tech.

Non Operating Income - Quarterly

Highest at Rs 63.10 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income