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Check Before You Invest : Zensar Technologies Ltd

BSE: 504067 NSE: ZENSARTECH ISIN: INE520A01027
  |   Sector:  IT & ITES   |   Industry:  IT - Software

Snapshot

Q.1 Which industry/sub-sector does Zensar Technologies Ltd belong to?
Zensar Technologies Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.
Q.2 Is Zensar Technologies Ltd a good quality company?
Zensar Technologies Ltd is a good quality company, based on a consistently good 10-year financial track record.
Q.3 Is Zensar Technologies Ltd undervalued or overvalued?
Zensar Technologies Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Zensar Technologies Ltd a good buy now?
Zensar Technologies Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Zensar Technologies Ltd?
Zensar Technologies Ltd revenue growth is 7.7% for FY-2025, which is above its 5-year CAGR of 4.78%, indicating faster growth.
Q.2 Return on capital employed (ROCE) of Zensar Technologies Ltd?
Zensar Technologies Ltd Return on capital employed is 22.93% for FY-2025, which is in line with its 5-year historical median of 22.93%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.
Q.3 Return on Asset of Zensar Technologies Ltd?
Zensar Technologies Ltd Return on Asset is 13.53%, which is above its 5-year historical median of 11.76%, indicating improved asset utilization efficiency.
Q.4 Return on Equity (ROE) of Zensar Technologies Ltd?
Zensar Technologies Ltd Return on equity is 17.23% for FY-2025, which is in line with its 5-year historical median of 16.9%, indicating the business is making similar use of its shareholders capital.
Q.5 Cash conversion cycle of Zensar Technologies Ltd?
Zensar Technologies Ltd Cash conversion cycle is 20 days, below its 5-year historical median of 26 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover 1.1 1.14
ROE 17.23 16.9
ROCE 22.93 22.93
Cash Conversion Cycle 20 days 26 days
Q.6 Gross Profit margin of Zensar Technologies Ltd?
Zensar Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 18.2% for FY-2025, which is in line with its 5-year median of 17.9%, indicating stable margins.
Q.7 Operating Profit Margin of Zensar Technologies Ltd?
Zensar Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 15.06% for FY-2025, which is in line with its 5-year median of 15.06% indicating stable margins.
Q.8 Net Profit Margin of Zensar Technologies Ltd?
Zensar Technologies Ltd Net Profit Margin is 12.31% for FY-2025, is above with its 5-year median of 9.94%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin 18.2 17.9
Operating Profit Margin 15.06 15.06
Net Profit Margin 12.31 9.94
Q.9 Debt to Equity ratio of Zensar Technologies Ltd?
Zensar Technologies Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.11, indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Zensar Technologies Ltd?
Zensar Technologies Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Zensar Technologies Ltd?
Promoters hold 49.00% of the Zensar Technologies Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Zensar Technologies Ltd vs industry peers?
Zensar Technologies Ltd revenue CAGR is 4.78%, compared to the industry median CAGR of 10.86%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth 7.7 10.9
Gross Profit Growth -5 19
Operating Profit Growth -10.9 NAN
Net Profit Growth -2.3 22
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover 1.1 0.5
ROE 17.23 5.83
ROCE 22.93 6.79
Cash Conversion Cycle (days) 19.75 47

Valuation & price assessment

Q.1 Stock return of Zensar Technologies Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 10.2% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price
CAGR
10.2% 14.3% 19.7% -28.4%
Q.3 Valuation ratios of Zensar Technologies Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 15.09 23.42 47.37
Price to Book 2.48 3.84 2.63
Price to Sales 2.06 2.74 4.79
EV to EBITDA 9.35 13.67 16.48

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