Moneycontrol PRO
Upcoming Event:Attend Algo Convention Live, 2 Days & 12+ Speakers at best offer Rs.999/-, exclusive for Moneycontrol Pro subscribers. Register now!

Buy Zensar Technologies; target of Rs 371: Prabhudas Lilladher

Prabhudas Lilladher is bullish on Zensar Technologies has recommended buy rating on the stock with a target price of Rs 371 in its research report dated May 12, 2022.

May 14, 2022 / 01:19 PM IST

"India’s specialty chemicals industry is a decadal growth opportunity and it is still not too late to participate in the value creation process. We prefer CRAMS/CSM players Navin Fluorine (Navin) and PI Industries (PI) as they provide long-term earnings visibility. We also like UPL due to robust growth outlook and reducing debt concerns and SRF due to rising contribution from the chemicals business," JM Financial research report.

  • bselive
  • nselive
Todays L/H

Prabhudas Lilladher's research report on Zensar Technologies

Zensar reported strong revenue beat of USD153.2mn, 4.2% QoQ CC, +4.1% QoQ USD (Ple: 2%, Cons: 2%), thereby consistently delivering healthy revenue growth for four consecutive quarters. It is on-track in management’s aspiration of delivering sustainable, consistent and predictable growth. Revenue growth momentum is expected to sustain, given strong headcount addition (11% QoQ, 45% YoY) and deal wins (+32% QoQ, +66% YoY) in Q4. However, margins are expected to remain under pressure in FY23 due to weak exit margins (flat QoQ, -474bps YoY), very high attrition levels (LTM attrition at 27.9%, Quarterly attrition down QoQ) and investments for growth. Our EPS estimates decrease by 8%/3% for FY23/24, led by decrease in margin estimates.


We value Zensar at earnings multiple of 16x (earlier:19x) factoring in sharp decline in margin profile, lower than industry growth and increased risk free rates. With FY24EPS of INR 23.2, we arrive at a changed TP of INR 371 (earlier: 453). Zensar is currently trading at attractive multiples of 16x/13x on FY23/24 EPS of 18.7/23.2 with revenue and EPS CAGR of 16% and 12% over FY22-24E. Maintain ‘BUY’.

For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Download your money calendar for 2022-23 here and keep your dates with your moneybox, investments, taxes

Broker Research
first published: May 14, 2022 01:19 pm
ISO 27001 - BSI Assurance Mark