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Last Updated on: 19 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 504067 | NSE: ZENSARTECH

Zensar Technologies Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 15, 2024, 7:26 pm

Market Cap 16,008 Cr.
Current Price 706
High / Low840/512
Stock P/E24.7
Book Value 163
Dividend Yield1.28 %
ROCE25.2 %
ROE20.0 %
Face Value 2.00
PEG Ratio1.43

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Zensar Technologies Ltd

Competitors of Zensar Technologies Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
IDream Film Infrastructure Company Ltd 1.41 Cr. 93.899.0/85.0 2950.00 %%% 10.0
IB Infotech Enterprises Ltd 25.4 Cr. 198245/11033.4 16.80.50 %69.9 %50.5 % 10.0
Hit Kit Global Solutions Ltd 6.54 Cr. 1.411.41/0.5820.4 2.080.00 %1.92 %1.94 % 2.00
Globalspace Technologies Ltd 61.6 Cr. 17.927.0/16.2187 11.20.00 %%% 10.0
First Fintec Ltd 8.92 Cr. 8.5810.9/4.51 10.20.00 %2.41 %1.77 % 10.0
Industry Average28,322.25N/A71.50N/AN/A17.1417.09N/A

All Competitor Stocks of Zensar Technologies Ltd

Quarterly Result

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Sales1,0511,1021,1541,2031,2351,1981,2131,2271,2411,2041,2301,2881,308
Expenses8899449901,0671,1291,0631,0379971,0109961,0271,0921,107
Operating Profit161158164136105135176230231208203196201
OPM %15%14%14%11%9%11%14%19%19%17%17%15%15%
Other Income23247221282627283642524241
Interest9996886666344
Depreciation47474849495035423731242530
Profit before tax12912618010277104162210225212229210208
Tax %26%27%27%26%26%26%26%26%23%24%24%25%25%
Net Profit9692131755776119156174162173158156
EPS in Rs4.184.025.743.322.513.385.276.907.687.147.656.976.86

Last Updated: November 6, 2024, 7:29 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales2,1292,3352,6562,9523,0563,1083,9664,1823,7814,2444,8484,9024,963
Expenses1,8281,9772,2642,5132,6742,7433,4873,6753,0973,5874,2964,0304,125
Operating Profit300358392439382365479507685656552872838
OPM %14%15%15%15%12%12%12%12%18%15%11%18%17%
Other Income330275424749388-24138103159173
Interest1010111192337615435282119
Depreciation33384265496589159175185183134116
Profit before tax261340366417349352445376433574444876875
Tax %33%30%28%30%32%30%28%28%29%27%26%24%
Net Profit175238265292238246319272307422328665667
EPS in Rs8.0110.8611.9412.9710.4710.7413.9311.6913.3018.4014.4729.3429.44
Dividend Payout %20%18%18%18%23%22%20%24%27%27%35%31%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)36.00%11.34%10.19%-18.49%3.36%29.67%-14.73%12.87%37.46%-22.27%102.74%
Change in YoY Net Profit Growth (%)0.00%-24.66%-1.16%-28.68%21.85%26.31%-44.41%27.60%24.59%-59.73%125.02%

Zensar Technologies Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:8%
5 Years:4%
3 Years:9%
TTM:3%
Compounded Profit Growth
10 Years:11%
5 Years:17%
3 Years:25%
TTM:23%
Stock Price CAGR
10 Years:19%
5 Years:30%
3 Years:16%
1 Year:31%
Return on Equity
10 Years:17%
5 Years:15%
3 Years:16%
Last Year:20%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 6:32 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital44444445454545454545454545
Reserves6859021,1131,2201,4271,6241,8972,0452,2972,6422,9313,5173,660
Borrowings2001701761491349300332350335273186147
Other Liabilities3283704024555006188471,174742817872899970
Total Liabilities1,2571,4861,7341,8692,1062,2963,0903,5963,4333,8404,1214,6484,822
Fixed Assets3974225473864475929501,3231,1331,2541,1741,0341,169
CWIP221236121101056
Investments42149941342432751152785173248991,4081,564
Other Assets8159141,0921,3471,4131,4242,0131,9831,7832,2602,0492,2002,084
Total Assets1,2571,4861,7341,8692,1062,2963,0903,5963,4333,8404,1214,6484,822

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +106209321255304206156686858336714642
Cash from Investing Activity +-25-128-182-41-204-142-229-315-5303-527-476
Cash from Financing Activity +-114-77-87-129-50-204201-197-467-183-219-197
Net Cash Flow-334518550-140128175-139156-31-31

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow100.00188.00216.00290.00248.00356.00179.00175.00335.00321.00279.00686.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days585662676475815857695555
Inventory Days198272266304
Days Payable200300283400
Cash Conversion Cycle562845-296475815857695555
Working Capital Days454755746570714028442732
ROCE %31%34%30%31%24%23%23%18%21%21%15%25%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters49.12%49.10%49.09%49.16%49.16%49.15%49.21%49.21%49.20%49.20%49.18%49.17%
FIIs15.75%17.81%16.55%15.95%9.18%10.75%10.53%12.59%16.66%17.12%16.53%15.74%
DIIs20.95%14.09%14.83%13.91%12.52%11.45%15.77%17.30%16.55%16.45%17.53%19.04%
Public14.18%18.99%19.54%20.99%29.13%28.63%24.48%20.89%17.59%17.23%16.77%16.06%
No. of Shareholders88,5421,18,3811,71,0731,86,5592,22,9742,24,5112,11,7541,97,8262,17,6992,25,6572,16,9352,01,777

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Hybrid Equity Fund - Regular Plan5,750,7311.47330.241,965,1232024-11-16192.64%
Nippon India Small Cap Fund4,039,1760.51231.951,965,1232024-11-16105.54%
HSBC Value Fund3,524,0001.8202.371,965,1232024-11-1679.33%
ICICI Prudential Technology Fund3,334,4921.56191.481,965,1232024-11-1669.68%
Franklin India Smaller Companies Fund2,532,0331.23145.41,965,1232024-11-1628.85%
Tata Digital India Fund1,965,1231.16112.851,965,1232024-11-160%
HSBC Aggressive Hybrid Fund1,910,0002.13109.681,965,1232024-11-16-2.81%
HDFC Childrens Gift Fund - Regular Plan1,423,8210.9781.761,965,1232024-11-16-27.55%
Nippon India Flexi Cap Fund989,7330.9556.841,965,1232024-11-16-49.64%
Franklin India Technology Fund963,2164.3255.311,965,1232024-11-16-50.98%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)29.3614.4718.4313.3111.69
Diluted EPS (Rs.)29.1314.4018.2713.1811.69
Cash EPS (Rs.)35.2722.5426.8421.3519.11
Book Value[Excl.RevalReserv]/Share (Rs.)157.26131.40118.89105.1093.78
Book Value[Incl.RevalReserv]/Share (Rs.)157.26131.40118.89105.1093.78
Revenue From Operations / Share (Rs.)216.42214.05187.78167.61185.52
PBDIT / Share (Rs.)45.5028.9235.1431.4826.42
PBIT / Share (Rs.)39.5920.8426.9623.7419.36
PBT / Share (Rs.)38.6719.6125.4019.1916.67
Net Profit / Share (Rs.)29.3614.4618.6613.6112.05
NP After MI And SOA / Share (Rs.)29.3614.4618.4213.3011.69
PBDIT Margin (%)21.0213.5118.7118.7814.24
PBIT Margin (%)18.299.7314.3514.1610.43
PBT Margin (%)17.869.1613.5211.448.98
Net Profit Margin (%)13.566.759.938.116.49
NP After MI And SOA Margin (%)13.566.759.807.936.29
Return on Networth / Equity (%)18.6611.0015.4912.8012.60
Return on Capital Employeed (%)23.6314.4620.0319.8717.06
Return On Assets (%)14.307.9410.758.737.32
Long Term Debt / Equity (X)0.000.000.080.000.03
Total Debt / Equity (X)0.000.000.080.000.13
Asset Turnover Ratio (%)1.121.210.540.460.53
Current Ratio (X)3.042.702.732.701.98
Quick Ratio (X)3.042.702.732.701.89
Dividend Payout Ratio (NP) (%)18.7334.5521.169.0145.45
Dividend Payout Ratio (CP) (%)15.5922.1614.655.6928.33
Earning Retention Ratio (%)81.2765.4578.8490.9954.55
Cash Earning Retention Ratio (%)84.4177.8485.3594.3171.67
Interest Coverage Ratio (X)49.3123.4822.5013.279.84
Interest Coverage Ratio (Post Tax) (X)32.8212.7412.957.655.49
Enterprise Value (Cr.)12988.215476.977684.405517.201745.42
EV / Net Operating Revenue (X)2.651.131.811.460.41
EV / EBITDA (X)12.608.369.687.772.93
MarketCap / Net Operating Revenue (X)2.801.281.961.640.46
Retention Ratios (%)81.2665.4478.8390.9854.54
Price / BV (X)3.852.083.092.640.93
Price / Net Operating Revenue (X)2.801.281.961.640.46
EarningsYield0.040.050.050.040.13

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Zensar Technologies Ltd as of November 19, 2024 is: 815.53

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 19, 2024, Zensar Technologies Ltd is Undervalued by 15.51% compared to the current share price 706.00

Intrinsic Value of Zensar Technologies Ltd as of November 19, 2024 is: 956.00

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 19, 2024, Zensar Technologies Ltd is Undervalued by 35.41% compared to the current share price 706.00

Last 5 Year EPS CAGR: 17.22%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 24.67%, which is a positive sign.
  2. The company has higher reserves (1,996.92 cr) compared to borrowings (212.38 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (3.08 cr) and profit (469.85 cr) over the years.
  1. The stock has a high average Working Capital Days of 49.83, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 51.17, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Zensar Technologies Ltd:
    1. Net Profit Margin: 13.56%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 23.63% (Industry Average ROCE: 17.14%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 18.66% (Industry Average ROE: 17.09%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 32.82
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 3.04
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 24.7 (Industry average Stock P/E: 71.5)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Zensar Technologies Ltd. is a Public Limited Listed company incorporated on 29/03/1963 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L72200PN1963PLC012621 and registration number is 012621. Currently Company is involved in the business activities of Computer programming, consultancy and related activities. Company’s Total Operating Revenue is Rs. 1628.90 Cr. and Equity Capital is Rs. 45.20 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Consulting & SoftwareZensar Knowledge Park, Kharadi, Plot # 4, MIDC, Pune Maharashtra 411014investor@zensar.com
http://www.zensar.com
Management
NamePosition Held
Mr. H V GoenkaChairman & Non-Exe.Director
Mr. Anant GoenkaVice Chairman & Non Exe.Dire
Mr. Manish TandonManaging Director & CEO
Mr. Ketan DalalInd. Non-Executive Director
Mr. A T VaswaniInd. Non-Executive Director
Mr. Ben DruskinInd. Non-Executive Director
Ms. Radha RajappaInd. Non-Executive Director
Mr. U B Pravin RaoInd. Non-Executive Director
Mr. Harsh MariwalaInd. Non-Executive Director

FAQ

What is the latest intrinsic value of Zensar Technologies Ltd?

The latest intrinsic value of Zensar Technologies Ltd as on 18 November 2024 is ₹815.53, which is 15.51% higher than the current market price of ₹706.00.

What is the Market Cap of Zensar Technologies Ltd?

The Market Cap of Zensar Technologies Ltd is 16,008 Cr..

What is the current Stock Price of Zensar Technologies Ltd as on 18 November 2024?

The current stock price of Zensar Technologies Ltd as on 18 November 2024 is ₹706.

What is the High / Low of Zensar Technologies Ltd stocks in FY 2024?

In FY 2024, the High / Low of Zensar Technologies Ltd stocks is 840/512.

What is the Stock P/E of Zensar Technologies Ltd?

The Stock P/E of Zensar Technologies Ltd is 24.7.

What is the Book Value of Zensar Technologies Ltd?

The Book Value of Zensar Technologies Ltd is 163.

What is the Dividend Yield of Zensar Technologies Ltd?

The Dividend Yield of Zensar Technologies Ltd is 1.28 %.

What is the ROCE of Zensar Technologies Ltd?

The ROCE of Zensar Technologies Ltd is 25.2 %.

What is the ROE of Zensar Technologies Ltd?

The ROE of Zensar Technologies Ltd is 20.0 %.

What is the Face Value of Zensar Technologies Ltd?

The Face Value of Zensar Technologies Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Zensar Technologies Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE