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Last Updated : May 20, 2020 04:24 PM IST | Source:

Buy Zensar Technologies; target of Rs 112: Cholamandalam securities

Cholamandalam securities is bullish on Zensar Technologies has recommended buy rating on the stock with a target price of Rs 112 in its research report dated May 20, 2020.

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Cholamandalam securities' research report on Zensar Technologies

In 4QFY20 Zensar’s consolidated revenues declined by 3.7% YoY to ₹ 10,178mn (-0.3% QoQ in CC terms) mainly due to a decline across verticals except retail (due to lower base). EBIDTA declined by ~4% YoY while margin for the quarter stood at ~12%. All three regions registered revenue growth in FY20 compared to FY19, US +3.3% and Europe +10.4% while Africa region registered growth of 26.9% YoY; within Africa region SA accounted for 10% of total revenue.


At CMP, the stock is trading at a P/E of 6.6x/5.9x over F21/22 EPS. Given the challenging medium term outlook, we revise our target price to INR 112 based on P/E of 7.5x on FY22 EPS and upgrade the stock to a Buy given compelling valuations.

For all recommendations report, click here

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First Published on May 20, 2020 04:24 pm
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