Company Snapshots

• Zensar Technologies is a leading digital solutions and technology services company.
• It is a part of the Mumbai-based RPG group and is headquartered in Pune, India.
• It operates in two segments: Application Management Service and Infrastructure management service.
• They have offices located in India, the USA, UK, Europe, and Africa.

Revenue Breakup

It is focused on industry verticals, such as Hitech & manufacturing, consumer services, and banking, financial services, and insurance.

1. Hitech : 27%
2. Manufacturing & Consumer Service: 25%
3. Banking & financial Services: 38%
4. Healthcare & Life Sciences: 10%

Fundamental Analysis

Key Ratios

Financial Trend

Revenue: 5  Year Comparison

• 2020: 4,182 crore
• 2024: 4,902 crore
• 5 Year Percentage change: 17.22 %
  

Net Profit: 5 Year Comparison

• 2020: 263 crore
• 2024: 665 crore
• 5 Year Percentage change: 152.85 %

Shareholding Pattern

Change in Shareholding Pattern

Promoters:

• 1 Year Change: -0.04%
• Analysis: The promoters’ shareholding has remained relatively stable with a negligible decrease of 0.04%.

Foreign Institutional Investors (FIIs):

• 1 Year Change: +5.21%
• Analysis: FIIs’ shareholding has increased significantly by 5.21%, indicating a strong increase in foreign investor interest.

Domestic Institutional Investors (DIIs):

• 1 Year Change: +3.27%
• Analysis: DIIs’ shareholding has also increased by 3.27%, showing a rise in domestic institutional investment.

Public:

• 1 Year Change: -8.42%
• Analysis: Public shareholding has decreased significantly by 8.42%, suggesting a considerable reduction in retail investor participation.

Stock Price Returns

1 Year Stock Returns

• Zensar Technologies has given 1 Year returns of 72.69 %
• 1 Lakh invested in July 2023 would have become 1.72 Lakhs in July 2024

5 Year Stock Returns

1Lakh turned into 3.31 lakh

• Zensar Technologies has given 1 Year returns of 231.64 %
• 1 Lakh invested in July 2020 would have become 3.31 Lakhs in July 2024

Company Valuation

• Current PE- 26.6
  
• Median PE- 20.8
  
• Company is Overvalued: As the Median PE is less than the Current PE, so we can say that company is company is  overvalued.
• So currently the IT sector is under-performing in the last 3 years so many stocks have not performed well despite having the increasing revenue & net profit.

Should you Invest ?

• Zensar Technologies is a leading & growing IT solution provider which have really strong fundamentals
• Company has no debt & the revenue are sitting at all time high so company is growing & it has the potential to grow
• At the current valuation company’s valuation seems to be bit overvalued but we we look at the Industry PE= 38.9 & Current PE= 26.6 then we can say that there is lot of potential to grow in the stock price in the near future.
• At current market price Rs 765 & Market Cap of just 17,331 Cr so being a small cap company it has potential to become the next Wipro/ TCS in next decade.
• If you are thinking of the long term then you can blindly invest in this company, do not go for the short term profit booking.

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Disclaimer

• Money Minded School is not a SEBI registered investment advisor, Please do your own research before investing
• This article is a complete guide about Zensar technologies.
• These information and forecasts are based on our analysis, research, company fundamentals and history, experiences, and various technical analyses.
• Also, We have talked in detail about the share’s future prospects and growth potential.
• Hopefully, this information will help you in your further investment.
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