Angel Broking has given a accumulate rating to Zensar Technologies with a target price of Rs 204. The share price moved up by 0.36 per cent from its previous close of Rs 179.45. The stock’s last traded price is Rs 180.10. Zensar Technologies Ltd., incorporated in the year 1963, is a Mid Cap company (having a market cap of Rs 4071.19 Crore) operating in IT Software sector.

Zensar Technologies Ltd. key Products/Revenue Segments include Software Development Charges & Other Services which contributed Rs 1370.08 Crore to Sales Value (100.00 % of Total Sales)for the year ending 31-Mar-2019.

Financials
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 991.24 Crore, down 2.61 % from last quarter Sales of Rs 1017.79 Crore and down -7.45 % from last year same quarter Sales of Rs 1071.02 Crore Company has reported net profit after tax of Rs 74.89 Crore in latest quarter.

Investment Rationale
The company was adversely impacted in FY2020 due to ramp down in the retail and consumer group segment. However company has won deals worth USD 150mn during the quarter and management has said that the deal pipeline is very strong at USD 1.5bn as compared to USD 1.0bn a quarter ago. The brokerage expects the company to post revenue/EBITDA/PAT growth of 4.5%/17.8%/19.7% between FY20-FY22 given that the worst is over for the company in terms of client ramp downs.


Promoter/FII Holdings
Promoters held 49.23 per cent stake in the company as of March 31, 2020, while FIIs held 17.65 per cent, DIIs 24.66 and public and others 8.46 per cent.