Zensar Technologies Ltd - Stock Valuation and Financial Performance

BSE: 504067 | NSE: ZENSARTECH | IT - Software | Small Cap

Zensar Technologies Share Price

768.20 50.45 7.03%
as on 12-Jul'24 16:01

DeciZen - make an informed investing decision on Zensar Technologies

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Zensar Technologies stock performance -

mw4me loader
P/E Ratio (CD):
26.24
Market Cap:
17,450.3 Cr.
52-wk low:
397.3
52-wk high:
788

Is Zensar Technologies Ltd an attractive stock to invest in?

1. Is Zensar Technologies Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Zensar Technologies Ltd is a good quality company.

2. Is Zensar Technologies Ltd undervalued or overvalued?

The key valuation ratios of Zensar Technologies Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Zensar Technologies Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Zensar Technologies Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

10 Year X-Ray of Zensar Technologies:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Zensar Technologies Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 22.6%22.3%19.7%15.8%13.6%16.1%11.8%15.8%16.5%11.5%-
Value Creation
Index
0.60.60.40.10.00.2-0.20.20.2-0.2-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 2,3352,6562,9523,0563,1083,9664,1823,7814,2444,8484,902
Sales YoY Gr.-13.7%11.2%3.5%1.7%27.6%5.4%-9.6%12.2%14.2%-
Adj EPS 10.31211.810.49.31310.415.217.313.529.3
YoY Gr.-16.6%-0.9%-12.3%-10.7%39.9%-20%46.2%14%-22%-
BVPS (₹) 43.252.256.364.873.68591.2103.2117.9130.5157.1
Adj Net
Profit
224265264233209292234342391305665
Cash Flow from Ops. 209321255304206156686858336714-
Debt/CF from Ops. 0.80.60.60.40.11.90.5000-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 8.5%9.3%5.1%14.2%
Adj EPS 3.1%7.8%9.1%-22%
BVPS13.1%12.1%12.7%10.7%
Share Price 24.5% 25.4% 31.4% 80.2%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
26.825.221.81713.316.211.615.515.610.820.4
Op. Profit
Mgn %
15.415.514.912.210.711.710.6161511.317.8
Net Profit
Mgn %
9.61097.86.97.55.89.29.46.313.6
Debt to
Equity
0.20.20.10.100.20.20000
Working Cap
Days
1341401341261321301341181039795
Cash Conv.
Cycle
4041454448423729262664

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 20.40%

Sales growth has been subdued in last 3 years 5.05%

Net Profit has been subdued in last 3 years 9.13%

Sales growth is not so good in last 4 quarters at 1.11%

Latest Financials - Zensar Technologies Ltd.

Standalone Consolidated
TTM EPS (₹) 21 29.3
TTM Sales (₹ Cr.) 2,019 4,902
BVPS (₹.) 118.3 157.1
Reserves (₹ Cr.) 2,635 3,517
P/BV 6.51 4.90
PE 36.58 26.24
From the Market
52 Week Low / High (₹) 397.30 / 788.00
All Time Low / High (₹) 0.94 / 781.45
Market Cap (₹ Cr.) 17,450
Equity (₹ Cr.) 45.3
Face Value (₹) 2
Industry PE 35.1

Management X-Ray of Zensar Technologies:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.010.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Zensar Technologies

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales2,3352,6562,9523,0563,1083,9664,1823,7814,2444,848
Operating Expenses 1,9772,2642,5132,6842,7743,5213,7403,1893,6174,311
Manufacturing Costs16414012411911511511495109113
Material Costs-246-313784500
Employee Cost 1,1331,2941,4571,5961,7052,1532,3472,1532,5753,123
Other Costs 7058239359579471,2451,2749379331,076
Operating Profit 358392439371334446442592627537
Operating Profit Margin (%) 15.3%14.7%14.9%12.2%10.7%11.2%10.6%15.7%14.8%11.1%
Other Income 30275435106126154118168118
Interest 1011119233761543728
Depreciation 384265496589159175185183
Exceptional Items 0000000-4900
Profit Before Tax 340366417349352445376433574444
Tax 102101125110105127104126152117
Profit After Tax 238265292238246319272307422328
PAT Margin (%) 10.2%10.0%9.9%7.8%7.9%8.0%6.5%8.1%9.9%6.8%
Adjusted EPS (₹)10.911.913.010.510.713.911.713.318.414.5
Dividend Payout Ratio (%)18%18%19%23%22%20%24%27%27%35%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 9451,1571,2561,4531,6551,9142,0562,3282,6642,956
Share Capital 44444545454545454545
Reserves 9011,1121,2121,4081,6101,8692,0112,2822,6192,910
Minority Interest11471417242900
Debt96991481316258289000
Long Term Debt75110610265000
Short Term Debt21971471300156223000
Trade Payables142130166175184301265220316277
Others Liabilities 460568273322407555913808805792
Total Liabilities 1,6441,9551,8472,0882,2653,0453,5463,3843,7864,025

Fixed Assets

Gross Block6548234575747861,2061,6961,5721,8151,822
Accumulated Depreciation23227571127195256373439561648
Net Fixed Assets4225473864475929501,3231,1331,2541,174
CWIP 212361211010
Investments 14994134243275115278517324899
Inventories1291231261131069894000
Trade Receivables358454540533642876666589797730
Cash Equivalents 146197277329207326517699856728
Others Assets439538383421438668657447554495
Total Assets 1,6441,9551,8472,0882,2653,0453,5463,3843,7864,025

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 209321255304206156686858336714
PBT 340366417349352445376433574444
Adjustment 3715837896112190250155151
Changes in Working Capital -6338-141-20-138-262235315-242211
Tax Paid -105-99-105-102-104-139-115-140-152-93
Cash Flow From Investing Activity -128-182-41-190-157-241-315-528-18-528
Capex -32-245-43-35-52-52-78-39-57-33
Net Investments -10558-5-158-111-179-183-49033-482
Others 85736-10-5416-12
Cash Flow From Financing Activity -77-87-129-50-204201-197-467-183-219
Net Proceeds from Shares 6645312230
Net Proceeds from Borrowing -52-75-1-1-4128-42-10600
Interest Paid -12-12-11-9-10-13-12-4-1-4
Dividend Paid -41-54-97-26-63-61-112-27-88-113
Others 2148-25-19-130146-32-332-97-102
Net Cash Flow 4518564-155116174-137135-32
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)28.3925.1824.2317.615.8617.8613.6814.0116.911.66
ROCE (%)34.2530.831.1323.6722.7924.6218.7120.4224.2916.67
Asset Turnover Ratio1.551.481.551.551.431.491.271.091.181.24
PAT to CFO Conversion(x)0.881.210.871.280.840.492.522.790.82.18
Working Capital Days
Receivable Days54566164697067616057
Inventory Days181715141398000
Payable Days-1,8948,07704,7189,81300000

Zensar Technologies Ltd Stock News

Zensar Technologies Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Zensar Technologies on 12-Jul-2024 16:01 is ₹768.2.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 12-Jul-2024 16:01 the market cap of Zensar Technologies stood at ₹17,450.3.
The latest P/E ratio of Zensar Technologies as of 12-Jul-2024 16:01 is 36.58.
The latest P/B ratio of Zensar Technologies as of 12-Jul-2024 16:01 is 6.51.
The 52-week high of Zensar Technologies is ₹788.0 and the 52-week low is ₹397.3.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Zensar Technologies is ₹2,019 ( Cr.) .

About Zensar Technologies Ltd

Zensar Technologies, formerly known as ICIL was acquired by the RPG group in 1989. It is a globally focused software and services company spread across eighteen countries across the world. Zensar provides end-to-end services from IT development to Business Process Outsourcing, from consulting to implementation.

It is a leading digital solutions and technology services company that specializes in partnering with global organizations across industries on their digital transformation journey. A technology partner of choice, backed by a strong  track  record  of  innovation; credible investment in digital solutions; and unwavering commitment to client  success, Zensar’s comprehensive range of digital and technology services and solutions enables its clients achieve new thresholds of business performance.

Zensar, with its experience in delivering excellence and superior client satisfaction through myriad technology solutions, is uniquely positioned to help its clients surpass challenges they face running their existing business most efficiently, helping in their legacy transformation, and planning for business expansion and growth through innovative and digital ways.

Business area of the company

The Company is engaged in the business of software development and allied services.

Services offered by the company

  • Consulting-IT process Consulting-Impact sourcing-Information architecture services
  • Business case development 
  • Business Solution Map 
  • Information needs analysis 
  • Information structure and page layouts 
  • Creating controlled vocabularies and metadata 
  • Search engine optimization 
  • Enhancing content management systems 
  • Best Fit Technology Implementation-Information Storage, Access & Delivery Platform 
  • Software services-Application Development-Application Support & Maintenance-Usability Engineering-Application Migration & Modernization-Embedded Software-Product Engineering-Testing Package solutions-ORACLE -SAP-Sharepoint
  • Implementation Tracks OOB Implementation 
  • Documentation Developing new Content Centric applications - Capture (Imaging & Form Based), Collaboration & Workflow, Publishing, Records Management, Storage and Archival Preconfigured Solution Offerings for Pharmaceuticals Cos. 
  • Regulated Document Management Framework for Banks
  • Collaboration services
  • Enterprise Content Management Services
  • ECM Consulting/Workshop/Assessment Services 
  • ECM Implementation Services 
  • Portal services
  • Learning Solutions
  • Business Process Management
  • BPM Consulting Services BPM Execution Services BPO services- Retail BPO Services- Customer Interaction Services.
  • Zensar's Customer Interaction services have expertise in industry verticals such as telecom, insurance, banking and technology and includes service suite that includes- Finance and Accounting- Knowledge Process Outsourcing (KPO).
  • Infrastructure services- IM Consulting- Data Center Management- Remote Infrastructure Management-Hosting services- IT Help Desk Services.

It caters to different industries viz:

  • Retail
  • Insurance
  • Banking
  • Energy & Utilities
  • Manufacturing

Different divisions of the company:

  • Consulting
  • Software services
  • Package solutions
  • Collaboration services
  • BPO services
  • Infrastructure services and Industries

Milestones & Achievements

  • Zensar is the world's first enterprise-wide SEI CMM Level 5 Company and now a CMMI Level 5 Company.
  • Trailblazer of the Year Award from NHRD for Best HR Practices for 2006.
  • Zensar has also been recognized for its unique HR practices by the Madhya Pradesh government.
  • Zensar won the Corporate Governance Business for Social Responsibility Award for 2006, which was presented by Bombay Stock Exchange in association with Times Now.
  • CNBC-TV 18 has honored Zensar with The Exporter of the Year Award for 2007 for wealth creation in India's international trade community.
  • Zensar has been awarded the 'Special Jury Commendation' Award by the President of India, Dr. A.P.J Abdul Kalam for the outstanding commitment and contribution to Nation Building through CSR efforts. 
  • Zensar has been recognized as an organization that has reacted well to changing demands and markets via their career development strategies and has implemented change management initiatives at its best. 
  • Zensar Technologies was recognized by the International Association of Outsourcing Professionals (IAOP) as one of The Global Outsourcing 100 in 2008 in a special advertising feature in the April 3, 2008 issue of FORTUNE® magazine. 
  • Zensar has been recognised by the BBB and has received the BBB online reliability seal. Zensar is now part of core group of businesses that support ethical business practices and integrity in the market place.
  • Named in Global Services 100 list. ISO 9001:2008: Basic system for defining its QMS and to assess QMS effectiveness.
  • SEI CMM/CMMI: Best practices for software engineering and continuous process improvement.
  • Total Quality Management (TQM): Used to bring about overall improvement and business excellence.
  • Six sigma: Used as a tool for systematic analysis and process improvement.
  • Zensar wins Oracle UK Partner Award for Emerging Business Application.

2010

  • Zensar Technologies, the leading global IT and BPO services provider announced the completion of a major systems integration project with Priceline.com. -Zensar Technologies is now a Platinum Partner in the Oracle -Zensar expands Global presence with launch of Shanghal Development Centre in China-Zensar acquires Akibia Inc.-Zensar rated among Top 100 Global Outsourcing Companies by International Association of Outsourcing Professionals-Recipient of the Green CSR award from the Green Energy Foundation in association with UNESCO (2010)-Asia Responsible Entrepreneurship Award 2010 in recognition of employee-friendly initiatives

2011

  • Zensar's Enterprise Application Practice bags multi-million dollar deals in key Geographies-Zensar Akibla launch Global IM Services-Cisco Awards Zensar Technologies Ltd Service Excellence Award-Zensar announces an agreement with Google to provide Google Apps solutions to the large retail and manufacturing customers-Zensar rated among Top 100 Global Outsourcing Companies by International Association of Outsourcing Professionals-Winner of CNBC’s International Trade Award in appreciation of the company’s outstanding contribution to Indian trade-Good Corporate Citizen Award 2011 by the Bombay Chamber of Commerce and Industry-The `Golden Peacock Award for Corporate Social Responsibility’ (2011).

2012

  • Zensar enters Top 10 Best IT employers Ranking.-Zensar won the Porter Prize for the Best Strategic Management practices in the Information, Media and Telecom Industry. -Zensar ranked among top 13 software companies in India by NASSCOM (2012)-Asia Pacific HRM Congress Award 2012-National Award in IT Excellence and Excellence in Global HR Strategy at the World HRD Congress 2012'.

2013

  • Assurant Health and Zensar Announce Multi-year Information Technology Support Agreement.
  • 'Zensar Technologies Launches Enhanced End-to-End Suite of Multivendor Support Service Offerings'- Microsoft Gold Partner for Application Development & Application Integration Competencies and status of Silver Partner for Business Intelligence, Collaboration and Content, Mobility and Data Platform competencies.
  • Zensar Technologies signs large multiplayer contracts in the US.
  • Zensar Technologies launches Insourcing Services Division.
  • Zensar Technologies Ltd has entered into an agreement with Kapela Fund 1 and The Tomorrow Trust to set up a new Broad Based Black Economic Empowerment company in South Africa.

2014

  • Zensar signs significant deals of near 100 crore.
  • IT firm, Zensar Technologies said that it has won a contract worth USD 6.7 million (approx 40.10 cr) from UK-based services provider Morrison Utility Services for cloud based application services.
  • Zensar Launches First Ever Employability Skills Development Program.
  • Zensar Technologies and Agile Financial Technologies partner to expand BFSI focused services globally.
  • Zensar Technologies Inc. acquires Professional Access Inc.
  • Zensar Technologies announces large multimillion dollar deal with leading UK high street retailer.
  • Zensar has signed significant multimillion dollar deals in the US in its infrastructure management business.

2015

  • The Company won new orders of about Rs 190 crore in its Application Management Services business. 
  • Zensar’s newly acquired entity, Professional Access Launches 'PARADE' to Accelerate Oracle eCommerce Deployment. 
  • Zensar to launch first digital literacy bus in Pune. 
  • Zensar Foundation launches its fourth Digital Literacy Centre, in Sudumbre.

2016

  • Zensar Technologies named as Digital Transformation Partner for leading East African Retailer, Nakumatt. 
  • Zensar Technologies enables South Africa's largest online retail store, NetFlorist to enhance customer shopping experience. 
  • Zensar Technologies wins Service Excellence award from Check Point Software Technologies Ltd. 
  • 'Zensar partners with Unicomer Group, a leading retailer in 24 countries in Latin America For Financial and Procurement process Transformation'. 
  • Zensar Technologies signs multi-million dollar Development deal with AVIS Fleet in South Africa. 
  • Zensar Technologies acquires Foolproof Ltd. 
  • Zensar to partner with FULLBEAUTY Brands in the transformation of its Financial Processes.

2018

  • The Company entered into a Share Purchase Agreement dated March 21, 2018 to acquire 100% equity in Cynosure Interface Solutions Private Limited, an Indian IT company for a purchase consideration not exceeding Rs. 1,300 lakhs, subject to certain conditions, payable upfront.

2019

  • iInspire award for Best Practices in Gender Diversity in 2019
  • Zensar featured in the 100 Best Company for Women in 2019 Working Mother & Avtar Best Companies for Women in India and  ‘Exemplar  of  Inclusion’  in  the  Working  Mother  &  Avtar  Most Inclusive Companies in India (MICI) in 2018 and 2019.
  • Participated McKinsey’s Women in Workplace study in 2019.

2020

  • Zensar’s ‘Women in Workplace’ case study won UN Global Compact’s 3rd Best Innovative Practices Awards in March 2020.
  • Zensar Woman Leader awarded ‘Tech Beacon’ in WEQUITY Awards in February 2020.
  • Hosted Round Table in partnership with WILL Forum in February 2020.
  • Zensar Technologies has been positioned as a Major Contender in the Everest Group Digital Workplace Services PEAK Matrix Assessment 2020.
  • Zensar Technologies has entered into an agreement with Service Express LLC to divest its global Third Party Maintenance (TPM) business.
  • Zensar Technologies has launched its blockchain based contract management solutions for enterprises.
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