ZENT has been taking several transformation measures post the recent investor and leadership change. The key ingredients of its strategy are: [1] Focus on Digital, [2] Attention towards 65 key accounts, and [3] Rejigging presence in Infrastructure Management (IM) towards Services and Cloud. While the first two are revenue drivers, the third leg of its strategy is a driver of margins. Progress in these areas has been substantial, but simultaneous pruning of low-yield accounts and trimming of the Product business is likely to limit revenue growth at 5% in FY17. The churn in the portfolio lays a better foundation for growth beyond FY17, driving our estimate of 12% revenue growth in FY18. This should be seconded by margin expansion from scaling up of newer areas and reconstitution of IM portfolio.They see potential for growth acceleration and stock re-rating. Maintain Buy, with a price target of INR1,300, which discounts forward earnings by 13x.