Zensar Tech share price surges 12% after healthy Q4 result, upbeat management commentary

Zensar Tech stock terms has surged arsenic overmuch arsenic 115 per cent implicit the past twelvemonth (as of April 25). Equity benchmark Sensex has gained astir 24 per cent successful the aforesaid period.

After marketplace hours connected April 25, Zensar Technologies said its consolidated gross from operations for the March 4th (Q4) of the past fiscal twelvemonth (FY24) climbed 2 per cent quarter-on-quarter (QoQ) to ₹1,229.7 crore against ₹1,204.1 crore successful Q3FY24.

Net nett for the 4th nether reappraisal roseate 7.2 per cent QoQ to ₹1,733 crore from ₹1,617 successful the erstwhile quarter.

Also Read: Bajaj Finance stock terms falls 7% aft Q4 result; Motilal Oswal downgrades stock

The management's optimistic commentary connected Q4 numbers appears to person influenced investors.

"Sequential maturation crossed each our verticals is simply a grounds of our robust strategy and our bias towards execution excellence. We expanded our marketplace scope with the assistance of our diversified work offerings. We proceed to absorption connected lawsuit and worker restitution arsenic our superior pillars of success. Our results springiness america the assurance to proceed strategical investments successful our work lines and heighten our capabilities successful caller property technologies specified arsenic Gen AI to foster innovation and present growth," said Manish Tandon, CEO and Managing Director, Zensar.

"We person achieved beardown fiscal results for FY24 owing to our focused efforts towards operational excellence and borderline betterment tracks, which helped america amended our EBITDA by 640 bps to 17.8 per cent and PAT by 690 bps to 13.6 per cent connected a YoY basis," said Sachin Zute, CFO, Zensar Tech.

"Our currency stood astatine $261.7 cardinal and we further improved our DSO to 73 days astatine the extremity of FY24. We proceed to person beardown momentum successful our bid publication which grew by 22 per cent YoY and stood astatine $698 cardinal for the year. For Q4FY24, our reported gross is $148.1 cardinal maturation of 2.4 per cent sequentially and 2 per cent successful changeless currency. EBITDA borderline for Q4 stood astatine 16.5 per cent which is supra our guided range," said Zute.

Meanwhile, brokerage steadfast Nirmal Bang has maintained a 'sell' telephone connected Zensar Tech banal with a people terms of ₹526. The brokerage steadfast has pared EPS (earnings per share) estimates for FY26-FY27 by astir 2-3 per cent aft Q4 results, chiefly owed to USD gross cuts.

"We reiterate ‘sell’ .on Zensar with a little people terms of ₹526 based connected 16.6 times March 2026E EPS. We person accorded a discount of 30 per cent to the people PE aggregate of TCS. The precocious discount reflects the deficiency of visibility connected maturation pick-up," Nirmal Bang said.

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Published: 26 Apr 2024, 11:25 AM IST