NSE: ZENSARTECH | BSE: 504067

Mid-range Performer

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822.75 -8.75 (-1.05%)

53.54% Gain from 52W Low

130.7K NSE+BSE Volume

NSE 06 Jun, 2025 12:32 PM (IST)

18,689.7

Market Cap

High in industry

1.3

Beta 1Year

Very High Volatility

Zensar Technologies Ltd. share price target and research reports

Latest analyst research reports with target prices and PDF download for ZENSARTECH, BSE:504067 Zensar Technologies Ltd.

Zensar Technologies Ltd.

25 Jan 2020

822.75

-1.05%

Industry level growth and margins some time away

Neutral: Zensar Technologies Ltd.

Recommendation Target

Motilal Oswal

The sharp decline can be largely attributed to (1) one-time tail account ramp downs in retail, (2) furloughs, and (3) year-end volume discounts. Given the available margin levers and impending headwinds (e.g. wage hikes, etc.), we expect EBITDA margins to remain flat at ~11% in FY21 before Barring FY19 when overall revenue growth (including inorganic) came close to that of mid-cap peers (mostly organic), the stock always traded at a steep discount to the sector (in range of 8-10x one-year forward P/E). This was due to its inferior growth (organic revenue CAGR of 4% over FY15-20E v/s 12%+ for mid-cap peers), pay-out ratio (20% v/s average pay-out of 40%) and return profile (RoE of 18% v/s 30%+ for On our revised estimates, the stock is trading at an optically expensive multiple of ~17x FY21E EPS (depressed earnings though).

Zensar Technologies Ltd. has gained 35.76% in the last 1 Year

Zensar Technologies Ltd.

20 Dec 2019

822.75

-1.05%

Zensar Technologies

Buy: Zensar Technologies Ltd.

ICICI Securities Limited

Zensar Technologies Ltd. has gained 35.76% in the last 1 Year

Zensar Technologies Ltd.

25 Oct 2019

822.75

-1.05%

Zensar Technologies Ltd: Muted Performance

Hold: Zensar Technologies Ltd.

Target

Karvy

Blame it on Retail and delay in renewals: Growth momentum at Zensar slowed down in Q2F20 due to sustained weakness in Retail and delay in deal renewals post completion of a large deal in Cloud Infra Services.

Number of FII/FPI investors increased from 264 to 290 in Mar 2025 qtr.

Zensar Technologies Ltd.

22 Oct 2019

822.75

-1.05%

Zensar Technologies (2QFY20): Near term challenges. Maintain BUY

Buy: Zensar Technologies Ltd.

Target

HDFC Securities

Zensar's key vertical (~53% of rev) Hi-Tech and Manufacturing are exposed to macro uncertainity and can get impacted if trade war risk accelerate. BSFI is doing well led by ramp-up of large deals in Insurance. Retail performace has been disappointing and is taking longer than expected to recover. Overall the growth engine will have near term challenges and will recover with large deal wins. Deal pipeline is healthy at USD 1bn and ~52% of the pipeline are large deals (TCV >USD 5mn). Margin recovery is slow but will recover gradually with growth. We build 11/16/15% Revenue/EBIT/PAT CAGR over FY19-22E. We maintain our positive view based on (1) High exposure to Digital, (2) Robust deal pipeline, (3) Scope for margin expansion and (4) Reasonable valuation. Risks include delay in decision making, trade wars and deterioration of US/Europe macro environment. We maintain BUY on Zensar despite muted performance in 2QFY20. Deal pipeline remains strong but TCV wins have slowed down due to macro uncertainty. Margin recovery is slower than expected and Retail weakness is weighing on growth. We cut FY21E Rev/EPS by 3.7/5.4% and reduce P/E multiple to 12x from 14x. Our TP of Rs 240 is based on 12x Sep-21E EPS.

Number of FII/FPI investors increased from 264 to 290 in Mar 2025 qtr.

Zensar Technologies Ltd.

22 Oct 2019

822.75

-1.05%

Revenue growth takes a pause

Buy: Zensar Technologies Ltd.

Target

Motilal Oswal

22 October 2019 2QFY20 revenue increased 12.8% YoY (v/s est. EBIT increased 6.2% YoY to INR1,115m (margin of 10.4%) v/s our expectation of 5.2% decline YoY. Despite higher operational income, PAT declined 16% YoY to INR799m (v/s est. of INR843m) led by higher interest expense at INR139m (v/s est. of INR39m) and lower other income at INR9m (v/s est. ZENT reported 15.8% QoQ drop in the CIS business, 7.7% drop in Retail vertical and 3.

Zensar Technologies .. has an average target of 737.50 from 4 brokers.

Zensar Technologies Ltd.

19 Aug 2019

822.75

-1.05%

Initiating Coverage:Zensar Tech.

Buy: Zensar Technologies Ltd.

Target

Axis Direct

Zensar Technologies Ltd, is a specialized IT Service provider headquartered in Pune, India. We initiate coverage with BUY rating and a target price of Rs. 270 i.e. 23% upside.

Zensar Technologies .. has an average target of 737.50 from 4 brokers.

Zensar Technologies Ltd.

09 Aug 2019

822.75

-1.05%

Zensar Technologies Ltd: Good Set of Numbers

Hold: Zensar Technologies Ltd.

Target

Karvy

Good Set of Numbers: Zensar reported a revenue growth of 18% YoY to Rs. 10661 Mn. In $ terms Zensar reported a revenue of $153.3 Mn up 3% QoQ. Revenues were up 16.4% in Q1FY19.

Zensar Technologies Ltd. has gained 35.76% in the last 1 Year

Zensar Technologies Ltd.

08 Aug 2019

822.75

-1.05%

Zensar Technologies (1QFY20): Revenue visibility intact. Maintain BUY

Buy: Zensar Technologies Ltd.

Target

HDFC Securities

Zensar's organic growth has improved led by robust deal wins but the margin recovery is lagging. Higher on-site revenue mix, slowdown in Retail, drop in utilisation (fresher's hiring) and investments in the business are impacting margins. We expect gradual recovery in EBIT margins (10.7/11.0% in FY20/21E). Deal pipe-line is healthy at USD 1bn, ~60% of the pipeline is large deals (TCV >USD 10mn). TCV for the quarter stood at USD 160mn (including renewals) and USD 750mn (~50% net new) for FY19. We maintain our positive view based on (1) Focus on POC led Digital sales, (2) Robust deal pipeline and (3) Growth visibility in the core business. We build 12/16/15% Revenue/EBIT/PAT CAGR over FY19-22E. Risks include delay in execution of large deals, onsite wage inflation and deterioration in US/Europe macros. We maintain BUY on Zensar post an in-line 1QFY20. Strong deal pipeline, ramp-up of large deals and improving win-ratio provides revenue visibility. Margins are not showing signs of improvement despite revenue up-tick. We cut multiple to 14x from 16x on slow margin recovery and rising on-site cost. Our TP of Rs 265 is based on 14x June-21E EPS.

Zensar Technologies Ltd. is trading above all available SMAs

Zensar Technologies Ltd.

07 Aug 2019

822.75

-1.05%

Zensar Tech

Buy: Zensar Technologies Ltd.

Target

Dolat Capital

View: Healthy deal win to aid revenue growth momentum Zensar's Q1FY20 revenue was lower than our estimate, due to conscious exit from its low-margin ROW business stream and muted growth in digital application services (adjusted revenues inline). The management remained confident on its deal wins (TCV of USD 160mn in Q1FY20) and its pipeline and expects it to exceed the previous year record deal wins of about USD 700mn. We believe that healthy deal wins and higher demand in digital services are likely to lead to strong revenue growth in the next few...

Zensar Technologies Ltd. has gained 35.76% in the last 1 Year

Zensar Technologies Ltd.

12 Jun 2019

822.75

-1.05%

Traction in growth and margins despite tight supply

Buy: Zensar Technologies Ltd.

Target

Motilal Oswal

Hi-Tech remains the key vertical, which is expected to drive this digital growth. Customers from Independent Software Vendors (ISVs) and Internet/Social/Mobile (ISM) sub-segments are spending heavily on digital which needs to be tapped. Acquisition of Indigo Slate and Foolproof has helped add more clients in this segment.

Number of FII/FPI investors increased from 264 to 290 in Mar 2025 qtr.

Is Zensar Technologies Ltd. worth buying?

433 Votes:

Buy 84.99%

Sell 7.39%

Hold 7.62%

RESEARCH REPORTS

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