Buy Zensar Technologies; target of Rs 193: IIFL

“Zensar has been witnessing a smart pick-up in order bookings over the past few quarters. It has been especially strong in the insurance vertical where the company has bagged deals worth USD 60 million in the past 18 months. The current order book (Rs 4-5 billion) and robust deal pipeline makes company confident of booking entire revenues for the year by October. Improved revenue performance (3% volume growth after two quarter of decline) in Q1 FY11 is a reflection of execution on some of the orders won recently. Revenues from Cisco, the Top client (~35% contribution), is expected to grow strongly at 27% in the current year to USD 70 million. Management is hopeful of issuing formal revenue guidance for FY11 in October with enhanced business visibility. We estimate modest 13.5% revenue CAGR for Zensar over FY10-12,” says IIFL research report.

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