Mr. Jyoti Roy – DVP – Equity Strategist, Angel Broking Ltd

Zensar Technologies (Target Rs. 238)

Zensar Technologies Ltd. has a very strong presence in Hi tech and manufacturing which were amongst the least impacted sectors due to Covid-19. Company was adversely impacted in FY2020 due to ramp down in the retail and consumer group segment. The retail and consumer group segment has gone down substantially from 27.1% of revenues in FY2018 to 20.7% of revenues in FY2020. The consumer group segment further degrew to 12.0% of revenues in Q1FY2021. The company has posted a decent set of numbers for Q1FY2021 and has won deals worth USD 150mn during the quarter. Management also sounded upbeat n demand given that deal pipeline is very strong at USD 1.5bn as compared to USD 1.0bn a quarter ago. We expect 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.

Shares of ZENSAR TECHNOLOGIES LTD. was last trading in BSE at Rs.198.35 as compared to the previous close of Rs. 205.9. The total number of shares traded during the day was 51018 in over 1835 trades.

The stock hit an intraday high of Rs. 210.75 and intraday low of 194.45. The net turnover during the day was Rs. 10286832.