Zensar Tech - IDBI Capital Downgrades The Stock To 'Hold', Hikes Target Price After Q3 Results; Here's Why

Zensar Technologies’ newest acquisition would not be margin dilutive in this fiscal year. Management re-iterated on investing in capabilities and sales team whenever there is an opportunity..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..IDBI Capital Report.Despite the seasonality impact in banking, financial services and insurance (-1.3% QoQ) and shutting down impact of few clients in technology, media and telecommunications (-3.5% QoQ), Zensar Technologies Ltd. reported a revenue of $157 million, up by 0.7%/8.6% QoQ/YoY in CC terms. Seasonality was offset by growth in manufacturing (6.5% QoQ) and healthcare verticals (3.2% QoQ). Management is positive to grow in the next quarter backed by the highest order bookings in this quarter ($205.3 million; +2% QoQ) and their account mining efforts. However, management seem to be cautious on the demand environment with the prevailing uncertainty around global macros. Having said that, management also stated discretionary spend intensity to be nearing the pre-covid levels which indicates better spending environment on client’s side. We expect, company to continue its growth momentum backed by the revival (BFSI) in demand zone. However, with recent run up in the price, we downgrade the stock to Hold rolling into FY27 at target price of Rs 792 (22 times FY27E EPS) versus previous target price of Rs 760..Click on the attachment to read the full report:.Cyient DLM Q3 Results Review — Slowdown In Order Flows Dampens Growth Visibility; Motilal Oswal Retains 'Buy'.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Zensar Tech - IDBI Capital Downgrades The Stock To 'Hold', Hikes Target Price After Q3 Results; Here's Why

Zensar's management maintains the guidance range of mid-teens of Ebida margin (15-16%) going ahead, adds the brokerage.

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