Is Zensar Technologies a good quality company?

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

Is Zensar Technologies 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 .

What is Zensar Technologies share price return in the past 10 years?

Zensar Technologies Ltd share price has appreciated 20.8% annually (CAGR) over the past ten years.

Is Zensar Technologies a good buy now?

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

Zensar Technologies Ltd - Stock Valuation and Financial Performance

Name: Zensar Technologies
Brand: Zensar Technologies

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

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Zensar Technologies Share Price

₹766.70 -9.65 -1.24%
as on 20-Dec'24 16:59

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

Standalone Basis ^P Consolidated Basis ^P

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

Value Creation ⓘ

Value Creation Index Colour Code Guide ⓘ

	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24	TTM
ROCE % ⓘ	30.8%	31.1%	23.7%	22.8%	24.6%	18.7%	20.4%	24.3%	16.7%	27.4%	-
Value Creation Index ⓘ	1.2	1.2	0.7	0.6	0.8	0.3	0.5	0.8	0.2	1.0	-
Growth Parameters ⓘ Growth Parameters Colour Code Guide ⓘ
Sales ⓘ	2,656	2,952	3,056	3,108	3,966	4,182	3,781	4,244	4,848	4,902	5,030
Sales YoY Gr.	-	11.2%	3.5%	1.7%	27.6%	5.4%	-9.6%	12.2%	14.2%	1.1%	-
Adj EPS ⓘ	12	11.8	10.4	9.3	13	10.4	15.2	17.3	13.5	29.4	28.6
YoY Gr.	-	-0.9%	-12.3%	-10.7%	39.9%	-20%	46.2%	14%	-22%	118%	-
BVPS (₹) ⓘ	52.2	56.3	64.8	73.6	85	91.2	103.2	117.9	130.5	155.7	163.3
Adj Net Profit ⓘ	265	264	233	209	292	234	342	391	305	667	649
Cash Flow from Ops. ⓘ	321	255	304	206	156	686	858	336	714	642	-
Debt/CF from Ops. ⓘ	0.6	0.6	0.4	0.1	1.9	0.5	0	0	0	0	-

CAGR ⓘ

CAGR Colour Code Guide ⓘ

	9 Years	5 Years	3 Years	1 Years
Sales ⓘ	7.1%	4.3%	9%	1.1%
Adj EPS ⓘ	10.5%	17.8%	24.7%	118%
BVPSⓘ	12.9%	12.9%	14.7%	19.3%
Share Price	20.8%	34.5%	18.5%	22.5%

Key Financial Parameters ⓘ

Performance Ratio Colour Code Guide ⓘ

	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24	TTM
Return on Equity % ⓘ	25.2	21.8	17	13.3	16.2	11.6	15.5	15.6	10.8	20.4	17.9
Op. Profit Mgn % ⓘ	15.5	14.9	12.2	10.7	11.7	10.6	16	15	11.3	17.4	16.1
Net Profit Mgn % ⓘ	10	9	7.8	6.9	7.5	5.8	9.2	9.4	6.3	13.6	12.9
Debt to Equity ⓘ	0.2	0.1	0.1	0	0.2	0.2	0	0	0	0	0
Working Cap Days ⓘ	140	134	126	132	130	134	118	103	97	96	95
Cash Conv. Cycle ⓘ	41	45	44	48	42	37	29	26	26	22	65

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 17.90%

Net Profit is growing at healthy rate in last 3 years 24.66%

Sales growth has been subdued in last 3 years 9.04%

Sales growth is not so good in last 4 quarters at 3.08%

Latest Financials - Zensar Technologies Ltd.

	Standalone	Consolidated
TTM EPS (₹)	22.4	28.6
TTM Sales (₹ Cr.)	2,102	5,030
BVPS (₹.) ⓘ	122.3	163.3
Reserves (₹ Cr.) ⓘ	2,895	3,660
P/BV ⓘ	6.27	4.70
PE ⓘ	34.21	26.83

From the Market
52 Week Low / High (₹)	512.80 / 838.45
All Time Low / High (₹)	0.94 / 838.45
Market Cap (₹ Cr.)	17,402
Equity (₹ Cr.)	45.4
Face Value (₹)	2
Industry PE ⓘ	36

Management X-Ray of Zensar Technologies:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged ^*

0.00

0.01

0.00

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

Valuation of Zensar Technologies

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Price Chart

Price to Earnings

Enterprise Value to EBIT

Price to Book-Value

Price to Sales

Dividend History

Analyst's Notes

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Key Ratios of Zensar Technologies

Standalone Basis Consolidated Basis

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Sales	2,656	2,952	3,056	3,108	3,966	4,182	3,781	4,244	4,848	4,902
Operating Expenses ⓘ	2,264	2,513	2,684	2,774	3,521	3,740	3,189	3,617	4,311	4,050
Manufacturing Costs	140	124	119	115	115	114	95	109	113	95
Material Costs	6	-3	13	7	8	4	5	0	0	0
Employee Cost	1,294	1,457	1,596	1,705	2,153	2,347	2,153	2,575	3,123	3,102
Other Costs ⓘ	823	935	957	947	1,245	1,274	937	933	1,076	854
Operating Profit ⓘ	392	439	371	334	446	442	592	627	537	852
Operating Profit Margin (%)	14.7%	14.9%	12.2%	10.7%	11.2%	10.6%	15.7%	14.8%	11.1%	17.4%
Other Income ⓘ	27	54	35	106	126	154	118	168	118	178
Interest ⓘ	11	11	9	23	37	61	54	37	28	21
Depreciation ⓘ	42	65	49	65	89	159	175	185	183	134
Exceptional Items ⓘ	0	0	0	0	0	0	-49	0	0	0
Profit Before Tax ⓘ	366	417	349	352	445	376	433	574	444	876
Tax ⓘ	101	125	110	105	127	104	126	152	117	211
Profit After Tax	265	292	238	246	319	272	307	422	328	665
PAT Margin (%)	10.0%	9.9%	7.8%	7.9%	8.0%	6.5%	8.1%	9.9%	6.8%	13.6%
Adjusted EPS (₹)	11.9	13.0	10.5	10.7	13.9	11.7	13.3	18.4	14.5	29.4
Dividend Payout Ratio (%)	18%	19%	23%	22%	20%	24%	27%	27%	35%	31%

Balance Sheet

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Equity and Liabilities
Shareholders Fund	1,157	1,256	1,453	1,655	1,914	2,056	2,328	2,664	2,956	3,526
Share Capital ⓘ	44	45	45	45	45	45	45	45	45	45
Reserves ⓘ	1,112	1,212	1,408	1,610	1,869	2,011	2,282	2,619	2,910	3,481
Minority Interest	1	4	7	14	17	24	29	0	0	0
Debt	99	148	131	6	258	289	0	0	0	0
Long Term Debt	1	1	0	6	102	65	0	0	0	0
Short Term Debt	97	147	130	0	156	223	0	0	0	0
Trade Payables	130	166	175	184	301	265	220	316	277	310
Others Liabilities ⓘ	568	273	322	407	555	913	808	805	792	702
Total Liabilities ⓘ	1,955	1,847	2,088	2,265	3,045	3,546	3,384	3,786	4,025	4,538
Fixed Assets
Gross Block	823	457	574	786	1,206	1,696	1,572	1,815	1,999	1,972
Accumulated Depreciation	275	71	127	195	256	373	439	561	826	938
Net Fixed Assetsⓘ	547	386	447	592	950	1,323	1,133	1,254	1,174	1,034
CWIP ⓘ	1	2	3	6	12	11	0	1	0	5
Investmentsⓘ	94	134	243	275	115	278	517	324	899	1,408
Inventories	123	126	113	106	98	94	0	0	0	0
Trade Receivables	454	540	533	642	876	666	589	797	730	732
Cash Equivalents	197	277	329	207	326	517	699	856	728	724
Others Assetsⓘ	538	383	421	438	668	657	447	554	495	634
Total Assets ⓘ	1,955	1,847	2,088	2,265	3,045	3,546	3,384	3,786	4,025	4,538

Cash Flow

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Cash Flow From Operating Activity ⓘ	321	255	304	206	156	686	858	336	714	642
PBT ⓘ	366	417	349	352	445	376	433	574	444	876
Adjustment ⓘ	15	83	78	96	112	190	250	155	151	47
Changes in Working Capital ⓘ	38	-141	-20	-138	-262	235	315	-242	211	-48
Tax Paid ⓘ	-99	-105	-102	-104	-139	-115	-140	-152	-93	-233
Cash Flow From Investing Activity ⓘ	-182	-41	-190	-157	-241	-315	-528	-18	-528	-475
Capex	-245	-43	-35	-52	-52	-78	-39	-57	-33	-15
Net Investments	58	-5	-158	-111	-179	-183	-490	33	-482	-529
Others ⓘ	5	7	3	6	-10	-54	1	6	-12	69
Cash Flow From Financing Activityⓘ	-87	-129	-50	-204	201	-197	-467	-183	-219	-197
Net Proceeds from Shares ⓘ	6	4	5	3	1	2	2	3	0	0
Net Proceeds from Borrowing ⓘ	-75	-1	-1	-4	128	-42	-106	0	0	0
Interest Paid ⓘ	-12	-11	-9	-10	-13	-12	-4	-1	-4	-3
Dividend Paid ⓘ	-54	-97	-26	-63	-61	-112	-27	-88	-113	-125
Others ⓘ	48	-25	-19	-130	146	-32	-332	-97	-102	-70
Net Cash Flow ⓘ	51	85	64	-155	116	174	-137	135	-32	-30

Finance Ratio

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Ratios
ROE (%)	25.18	24.23	17.6	15.86	17.86	13.68	14.01	16.9	11.66	20.52
ROCE (%)	30.8	31.13	23.67	22.79	24.62	18.71	20.42	24.29	16.67	27.43
Asset Turnover Ratio	1.48	1.55	1.55	1.43	1.49	1.27	1.09	1.18	1.24	1.14
PAT to CFO Conversion(x)	1.21	0.87	1.28	0.84	0.49	2.52	2.79	0.8	2.18	0.97
Working Capital Days
Receivable Days	56	61	64	69	70	67	61	60	57	54
Inventory Days	17	15	14	13	9	8	0	0	0	0
Payable Days	8,077	0	4,718	9,813	0	0	0	0	0	0

Zensar Technologies Ltd Stock News

Zensar Technologies Ltd FAQs

What is the share price of Zensar Technologies?

Company share prices are keep on changing according to the market conditions. The closing price of Zensar Technologies on 20-Dec-2024 16:59 is ₹766.7.

What is the market cap of Zensar Technologies?

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 20-Dec-2024 16:59 the market cap of Zensar Technologies stood at ₹17,402.

What is the P/E ratio of Zensar Technologies?

The latest P/E ratio of Zensar Technologies as of 20-Dec-2024 16:59 is 34.21.

What is the P/B ratio of Zensar Technologies?

The latest P/B ratio of Zensar Technologies as of 20-Dec-2024 16:59 is 6.27.

What is the 52-week high and low of Zensar Technologies?

The 52-week high of Zensar Technologies is ₹838.5 and the 52-week low is ₹512.8.

What is the TTM revenue of Zensar Technologies?

The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Zensar Technologies is ₹2,102 ( 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.