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Last Updated on: 23 April, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 504067 | NSE: ZENSARTECH

Fundamental Analysis of Zensar Technologies Ltd

Basic Stock Data

Last Updated: April 23, 2024, 11:32 am

Market Cap 12,937 Cr.
Current Price 572
High / Low646/267
Stock P/E21.2
Book Value 144
Dividend Yield0.87 %
ROCE14.5 %
ROE11.2 %
Face Value 2.00

Data Source: screener.in

Competitors of Zensar Technologies Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Mindpool Technologies Ltd 36.0 Cr. 85.098.0/45.6 42.40.00 %3.25 %1.67 % 10.0
Aurionpro Solutions Ltd 5,931 Cr. 2,3902,450/31946.6 2330.10 %24.9 %21.8 % 10.0
IZMO Ltd 404 Cr. 300363/11216.0 2110.00 %8.06 %7.62 % 10.0
RS Software (India) Ltd 692 Cr. 275299/25.738.2 18.90.00 %44.3 %45.8 % 5.00
ASM Technologies Ltd 1,244 Cr. 1,1341,149/366 67.40.62 %13.4 %9.81 % 10.0
Industry Average1,661.40 Cr836.8020.16114.540.14%18.78%17.34%9.00

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales9348769371,0511,1021,1541,2031,2351,1981,2131,2271,2411,204
Expenses7497047648899449901,0671,1291,0631,0379971,010996
Operating Profit185172173161158164136105135176230231208
OPM %20%20%18%15%14%14%11%9%11%14%19%19%17%
Other Income4561823247221282627283642
Interest131299996886666
Depreciation43444347474849495035423731
Profit before tax17512214012912618010277104162210225212
Tax %20%25%26%26%27%27%26%26%26%26%26%23%24%
Net Profit139911039692131755776119156174162
EPS in Rs6.123.914.484.184.025.743.322.513.385.276.907.687.14

Last Updated: April 10, 2024, 5:24 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: April 5, 2024, 11:44 am

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,7942,1292,3352,6562,9523,0563,1083,9664,1823,7814,2444,8484,885
Expenses1,5451,8281,9772,2642,5132,6742,7433,4873,6753,0973,5874,2964,040
Operating Profit249300358392439382365479507685656552844
OPM %14%14%15%15%15%12%12%12%12%18%15%11%17%
Other Income30330275424749388-24138103134
Interest910101111923376154352824
Depreciation3333384265496589159175185183145
Profit before tax236261340366417349352445376433574444809
Tax %33%33%30%28%30%32%30%28%28%29%27%26%
Net Profit159175238265292238246319272307422328611
EPS in Rs7.318.0110.8611.9412.9710.4710.7413.9311.6913.3018.4014.4726.99
Dividend Payout %19%20%18%18%18%23%22%20%24%27%27%35%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)10.06%36.00%11.34%10.19%-18.49%3.36%29.67%-14.73%12.87%37.46%-22.27%
Change in YoY Net Profit Growth (%)0.00%25.94%-24.66%-1.16%-28.68%21.85%26.31%-44.41%27.60%24.59%-59.73%

Growth

Compounded Sales Growth
10 Years:9%
5 Years:9%
3 Years:5%
TTM:2%
Compounded Profit Growth
10 Years:6%
5 Years:6%
3 Years:8%
TTM:81%
Stock Price CAGR
10 Years:23%
5 Years:20%
3 Years:30%
1 Year:125%
Return on Equity
10 Years:16%
5 Years:14%
3 Years:14%
Last Year:11%

Last Updated: April 17, 2024, 10:08 am

Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital43444444454545454545454545
Reserves5336859021,1131,2201,4271,6241,8972,0452,2972,6422,9313,207
Borrowings2482001701761491349300332350335273243
Other Liabilities4023283704024555006188471,174742817872906
Total Liabilities1,2261,2571,4861,7341,8692,1062,2963,0903,5963,4333,8404,1214,401
Fixed Assets3783974225473864475929501,3231,1331,2541,1741,107
CWIP322123612110100
Investments4842149941342432751152785173248991,013
Other Assets7978159141,0921,3471,4131,4242,0131,9831,7832,2602,0492,282
Total Assets1,2261,2571,4861,7341,8692,1062,2963,0903,5963,4333,8404,1214,401

Reserves and Borrowings Chart

Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 174106209321255304206156686858336714
Cash from Investing Activity -45-25-128-182-41-204-142-229-315-5303-527
Cash from Financing Activity -64-114-77-87-129-50-204201-197-467-183-219
Net Cash Flow64-334518550-140128175-139156-31

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow1.00100.00188.00216.00290.00248.00356.00179.00175.00335.00321.00279.00

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 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days595856626764758158576955
Inventory Days199198272266304
Days Payable280200300283400
Cash Conversion Cycle-22562845-2964758158576955
Working Capital Days304547557465707140284427
ROCE %33%31%34%30%31%24%23%23%18%21%21%15%

Financial Efficiency Indicators Chart

Zensar Technologies Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters49.19%49.18%49.12%49.10%49.09%49.16%49.16%49.15%49.21%49.21%49.20%49.20%
FIIs16.02%17.10%15.75%17.81%16.55%15.95%9.18%10.75%10.53%12.59%16.66%17.12%
DIIs24.58%21.13%20.95%14.09%14.83%13.91%12.52%11.45%15.77%17.30%16.55%16.45%
Public10.22%12.59%14.18%18.99%19.54%20.99%29.13%28.63%24.48%20.89%17.59%17.23%
No. of Shareholders38,86162,00388,5421,18,3811,71,0731,86,5592,22,9742,24,5112,11,7541,97,8262,17,6992,25,657

Shareholding Pattern Chart

No. of Shareholders

Zensar Technologies Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
HDFC Hybrid Equity Fund - Regular Plan57507311.47330.24
Nippon India Small Cap Fund40391760.51231.95
HSBC Value Fund35240001.8202.37
ICICI Prudential Technology Fund33344921.56191.48
Franklin India Smaller Companies Fund25320331.23145.4
Tata Digital India Fund19651231.16112.85
HSBC Aggressive Hybrid Fund19100002.13109.68
HDFC Childrens Gift Fund - Regular Plan14238210.9781.76
Nippon India Flexi Cap Fund9897330.9556.84
Franklin India Technology Fund9632164.3255.31

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)14.4718.4313.3111.6913.93
Diluted EPS (Rs.)14.4018.2713.1811.6913.70
Cash EPS (Rs.)22.5426.8421.3519.1118.12
Book Value[Excl.RevalReserv]/Share (Rs.)131.40118.89105.1093.7887.00
Book Value[Incl.RevalReserv]/Share (Rs.)131.40118.89105.1093.7887.00
Revenue From Operations / Share (Rs.)214.05187.78167.61185.52176.12
PBDIT / Share (Rs.)28.9235.1431.4826.4225.40
PBIT / Share (Rs.)20.8426.9623.7419.3621.43
PBT / Share (Rs.)19.6125.4019.1916.6719.78
Net Profit / Share (Rs.)14.4618.6613.6112.0514.15
NP After MI And SOA / Share (Rs.)14.4618.4213.3011.6913.92
PBDIT Margin (%)13.5118.7118.7814.2414.42
PBIT Margin (%)9.7314.3514.1610.4312.16
PBT Margin (%)9.1613.5211.448.9811.22
Net Profit Margin (%)6.759.938.116.498.03
NP After MI And SOA Margin (%)6.759.807.936.297.90
Return on Networth / Equity (%)11.0015.4912.8012.6016.14
Return on Capital Employeed (%)14.4620.0319.8717.0622.56
Return On Assets (%)7.9410.758.737.3210.14
Long Term Debt / Equity (X)0.000.080.000.030.05
Total Debt / Equity (X)0.000.080.000.130.13
Asset Turnover Ratio (%)0.540.540.460.530.67
Current Ratio (X)2.702.732.701.982.04
Quick Ratio (X)2.702.732.701.891.94
Dividend Payout Ratio (NP) (%)34.5521.169.0145.4520.10
Dividend Payout Ratio (CP) (%)22.1614.655.6928.3315.64
Earning Retention Ratio (%)65.4578.8490.9954.5579.90
Cash Earning Retention Ratio (%)77.8485.3594.3171.6784.36
Interest Coverage Ratio (X)23.4822.5013.279.8415.34
Interest Coverage Ratio (Post Tax) (X)12.7412.957.655.499.55
Enterprise Value (Cr.)5476.977684.405517.201745.425165.65
EV / Net Operating Revenue (X)1.131.811.460.411.30
EV / EBITDA (X)8.369.687.772.939.03
MarketCap / Net Operating Revenue (X)1.281.961.640.461.32
Retention Ratios (%)65.4478.8390.9854.5479.89
Price / BV (X)2.083.092.640.932.69
Price / Net Operating Revenue (X)1.281.961.640.461.32
EarningsYield0.050.050.040.130.06

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 344.89

The stock is overvalued by 39.70% compared to the current price ₹572

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.

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 25.33%, which is a positive sign.
  2. The company has higher reserves (1,732.54 cr) compared to borrowings (224.54 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (2.85 cr) and profit (415.54 cr) over the years.
  1. The stock has a high average Working Capital Days of 49.67, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 44.75, 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: 6.75%
      • 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: 14.46% (Industry Average ROCE: 18.78%)
      • 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%: 11.00% (Industry Average ROE: 17.34%)
      • 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): 12.74
      • 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: 2.70
      • 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: 21.2 (Industry average Stock P/E: 20.16)
      • 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: 0.00
      • 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

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. Harsh MariwalaInd. Non-Executive Director
Mr. A T VaswaniInd. Non-Executive Director
Mr. Venkatesh KasturiranganInd. Non-Executive Director
Mr. Ben DruskinInd. Non-Executive Director
Ms. Radha RajappaInd. Non-Executive Director
Mr. U B Pravin RaoInd. Non-Executive Director
Mr. Ketan DalalInd. Non-Executive Director

Zensar Technologies Ltd. Share Price Update

Share PriceValue
Today₹571.00
Previous Day₹574.05

FAQ

What is the latest fair value of Zensar Technologies Ltd?

The latest fair value of Zensar Technologies Ltd is ₹344.89.

What is the Market Cap of Zensar Technologies Ltd?

The Market Cap of Zensar Technologies Ltd is 12,937 Cr..

What is the current Stock Price of Zensar Technologies Ltd as on 23 April 2024?

The current stock price of Zensar Technologies Ltd as on 23 April 2024 is 572.

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 ₹646/267.

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

The Stock P/E of Zensar Technologies Ltd is 21.2.

What is the Book Value of Zensar Technologies Ltd?

The Book Value of Zensar Technologies Ltd is 144.

What is the Dividend Yield of Zensar Technologies Ltd?

The Dividend Yield of Zensar Technologies Ltd is 0.87 %.

What is the ROCE of Zensar Technologies Ltd?

The ROCE of Zensar Technologies Ltd is 14.5 %.

What is the ROE of Zensar Technologies Ltd?

The ROE of Zensar Technologies Ltd is 11.2 %.

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