Why Zensar offers margin of safety despite its outperformance
We expect Zensar’s valuation discount to mid-cap players to gradually narrow
September 08, 2021 / 03:36 PM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
We have been betting on the turnaround of Zensar (CMP: Rs 437 Market Cap: Rs 9,873 crore) — the mid-sized IT company from the RPG stable — for a while. Our last recommendation, at the price of Rs 293, has worked well with huge outperformance over both Nifty and the IT index. Despite the strong run, the stock has a long road to catch up as the turnaround fully plays out.
Signs of a turnaround …
After contracting in all the...