Zensar's organic growth has slipped (~5% in FY20E vs. ~9% in FY19) due to high exposure to stressed verticals like Hi-Tech, Manufacturing and Retail. BSFI is doing well led by deals wins in Insurance and focus on large African banks. Retail performace has been disappointing and is taking longer than expected to recover. Deal pipeline is healthy at USD 1bn, ~50% of the pipeline are large deals (TCV >USD 5mn) but conversion and execution remains the key. Margin recovery target is aggressive considering the ongoing restructuring and higher onsite revenue mix. We build 7.1/6.1/6.4% Revenue/EBIT/PAT CAGR over FY19-22E. The stock trades at a P/E of 13.5/10.2x FY21/22E, which is reasonable but better growth and margin visibility will lead to re-rating. We downgrade Zensar to NEU (from BUY), post disappointing 3QFY20, growth challenges and weak execution. Deal pipeline is healthy and TCV wins have improved but not reflecting in growth. Margin recovery is slower than expected and Retail/Legacy drag is weighing on growth and margins. We cut FY22E Rev/EPS by 10.5/19.9% and reduce P/E multiple to 11x vs. 12x earlier. Our TP of Rs 177 is based on 11x (~14% discount to 5Y average) Dec-21E EPS.