Zensar Technologies Share Price Hits Life High After Strong Q3 Results

Shares of Zensar Technologies Ltd. rose over 12% on Thursday to hit a fresh life high, after it reported strong third quarter results. The software and services company reported a 2.6% rise in net profit to Rs 160 crore in the third quarter of the current financial year, compared to Rs 156 crore in the same quarter last year.

Revenue increased by 1.3% year-on-year for the three months ended December 2024, reaching Rs 1,326 crore. Operating income, or earnings before interest, taxes rose 7% year-on-year to Rs 183 crore. The Ebitda margin expanded by 70 basis points to 13.8% from 13.1% in the same period the previous year.

The rise in revenue was on the back of 24% year-on-year growth in revenue in the healthcare and life sciences segment. While manufacturing and consumer services reported a 15.2% year-on-year revenue growth, banking and financial services showed a 12.9% year-on-year growth in revenue growth. On the other hand, the telecommunications, media, and technology sector struggled with a 10.2% year-on-year revenue decline.

The company on Wednesday announced an interim dividend of Rs 2 per share that will be paid before Feb. 10. The record date for the dividend has been fixed as Jan. 28.

"Our strategic business approach and focus on execution and AI translate positively into the company’s overall performance," added Manish Tandon, chief executive officer and managing director at Zensar Technologies.

The shares of Zensar Technologies rose as much as 14.88% to Rs 861.65 apiece to hit fresh life high. It pared gains to trade 12.82% higher at Rs 846.20 apiece, as of 10:42 a.m. This compares to a 0.32% advance in the NSE Nifty 50.

The stock has risen 55.49% in the last 12 months. Total traded volume so far in the day stood at 25 times its 30-day average. The relative strength index was at 66.

Out of 12 analysts tracking the company, seven maintain a 'buy' rating, four recommend a 'hold' and one suggests 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies a downside of 1.9%.