HDFC Securities downgrades Zensar Technologies to neutral, target price Rs 177

HDFC Securities has a neutral call on Zensar Technologies Ltd. with a target price of Rs 177.0 . The current price of Zensar Technologies Ltd. is Rs 176.6 Time period given by the analyst is Long Term when Zensar Technologies Ltd. price can reach defined target. . .

Zensar Technologies Ltd., incorporated in 1963, has a market cap of Rs 3979.62 crore.

Company Financials

For the quarter ended 31-12-2019, the company has reported a Consolidated sales of Rs 1020.59 Crore, down -4.82 % from last quarter Sales of Rs 1072.28 Crore and down -1.44 % from last year same quarter Sales of Rs 1035.55 Crore Company has reported net profit after tax of Rs 41.18 Crore in latest quarter.

The company’s top management includes Mr.A T Vaswani, Mr.Anant Goenka, Mr.Arvind Agarwal, Mr.Ben Druskin, Mr.H V Goenka, Mr.Harsh Mariwala, Mr.Ketan Dalal, Mr.Sandeep Kishore, Mr.Shashank Singh, Mr.Venkatesh Kasturirangan, Ms.Radha Rajappa, Ms.Tanuja Randery. Company has Deloitte Haskins & Sells LLP as its auditors .As on 31-12-2019, the company has a total of 225,346,690 shares outstanding.

Investment Rationale

The brokerage downgraded the stock following disappointing third quarter results, growth challenges and weak execution. Deal pipeline is healthy and TCV wins have improved but not reflecting in growth, said HDFC Securities. Margin recovery is slower than expected and retail/legacy drag is weighing on growth and margins, the brokerage said.