829.10
-1.37%

Zensar Technologies (2QFY17): Strength in digital proposition. Maintain BUY

HDFC Securities
Zensars ongoing business restructuring and client pruning exercise is weighing on growth however margins are improving steadily with services (IMS) focus. We believe that the company?s digital capabilities (~27.8% of revenue, 3.6% QoQ) and strong relationship with Oracle (managed cloud partnership) will drive next phase of growth. Surge in deal pipeline to US$ 700mn (vs US$ 500mn in 1Q) and new deal wins of US$ 40mn in 2Q (100% digital) bolsters our confidence.
Zensar Technologies .. has an average target of 737.50 from 4 brokers.
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