Dec 14, 2012 11:18 AM IST | Source:

Hold Zensar Tech; target of Rs 302: Firstcall Research

Firstcall Research has recommended hold rating on Zensar Technologies with a target of Rs 302, in its December 12, 2012 research report.

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Firstcall Research has recommended hold rating on Zensar Technologies with a target of Rs 302, in its December 12, 2012 research report.

“Zensar Technologies (Zensar) is a globally renowned software services company that specializes in providing a complete range of Software Services and Solutions. Zensar is ranked amongst India's Top 20 Software Services Companies by National Association of Software and Services Companies (NASSCOM) and is also recognized by the Department of Scientific and Industrial Research (DSIR) for its robust in-house Research and Development practices and an acknowledged leader in Innovation. Zensar is the world's first enterprise-wide SEI CMM Level 5 Company and enjoys a strong presence in the United States, Europe, Africa, Middle East and Asia-Pacific regions. To service Global Customers, Zensar has Delivery Centers in Pune and Hyderabad in India, China, Japan & the UK. With 6000+ associates, 400+ customers and 14 nationalities operating in more than 20 global locations, Zensar helps transform Global Corporations.”

“The company’s net profit decreased to Rs.321.70 million against Rs.400.50 million in the corresponding quarter ending of previous year, a decrease of 19.68%. Revenue for the quarter rose 27.46% to Rs.5450.50 million from Rs.4276.30 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.7.39 a share during the quarter. Profit before interest, depreciation and tax is Rs.605.60 millions as against Rs.714.40 millions in the corresponding period of the previous year.”

“At the current market price of Rs 265, the stock P/E ratio is at 6.18 x FY13E and 5.28 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.42.88 and Rs.50.22 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 32% and 18% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 3.34 x for FY13E and 2.66 x for FY14E. Price to Book Value of the stock is expected to be at 1.51 x and 1.18 x respectively for FY13E and FY14E. We recommend ‘HOLD’ in this particular scrip with a target price of Rs 302 for medium to long term investment,” says Firstcall Research report.  

FIIs holding more than 30% in Indian cos

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