Buy Zensar Technologies; target of Rs 1130: Choice Equity Broking

Buy

Choice Equity Broking's report on Zensar Technologies

We believe Zensar is a new turnaround story unfolding at RPG group led by its new leadership team. This is evident from strategic changes undertaken like: . CEO Manish Tandon leading Zensar’s story to bring in stability and agility. Large deal wins fueled by incentivizing sales team structure. Client centricity reflected in improved customer experience scores The new initiatives are getting reflected on company’s industry lowest attrition rates, better customer experience scores and improving profitability, which has witnessed 40% CAGR from FY23-25.

Outlook

Given its strategic long-term growth plan, we expect Zensar to deliver Revenue/ EBITDA/ PAT CAGR of 9.8%/ 10.4%/ 15.4% from FY25-FY27E on organic basis. Thus, we initiate coverage on Zensar with a BUY recommendation and Target Price of INR 1,130 which is an upside of 34%, by valuing the company at a PE of ~30x based on FY27E EPS of INR 37.7.

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Zensar Technologies - 02072025 - choice