Zensarâ€“ Why it deserves long-term attention now

1 month ago

With decent progress on order inflows, the company’s revenue trajectory is set to look up

March 26, 2024 / 10:44 AM IST

Zensar– Why it deserves long-term attention now

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PRO Only Highlights
- Quarterly performance largely backed by improved realisations
- Medium-term triggers China plus and protectionist measures for tyre industry
- Valuations not inexpensive; but improved medium-term outlook

Highlights

Revenue trajectory to revive graduallySharp margin gains, stability expected going forwardOrder bookings lend confidenceGood progress on client farmingStable management teamValuation has room for long-term upside

We were cautious on Zensar (CMP: Rs 590, Market Cap: Rs 13,374 crore, Rating: Overweight) after the steep jump in the stock price in 2023 as we saw speed-breakers in a seasonally weak Q3. In the past five months, however, with gains of little over 7 percent, the stock of Zensar has