Consumer services

“BUY” this Multibagger computer stock with a target price of Rs. 613: HDFC Titles

Zensar Technologies Ltd result T2FY22

HDFC Securities said in its latest report that “Zensar’s consolidated revenue grew 12.1% quarter-on-quarter and 7.3% year-on-year to reach Rs 1,051 crore in fiscal year 22 The company reported sales of US $ 141.9 million, sequential constant currency growth of 12.3% in the quarter. EBIT was down 12% QoQ and 18.9% YoY to Rs 114 crore. Adjusted net profit amounted to Rs 94 crore at T2FY22, it was down 6.4% QoQ but rose 5.8% YoY. On operating parameters, the contribution to digital revenues was 71.1% in T2FY22 versus 68% of revenues in T1FY22 versus 63.8% in T2FY21. On QoQ, the US region grew 11.9%, the UK region grew 11.2%, and South Africa grew 10.0%. “

According to the brokerage firm “From a vertical point of view, on a QoQ basis, the banking vertical showed growth of 37.0%, while insurance grew by 12.2%. Hi-Tech customer revenues grew 3.9% sequentially, while manufacturing posted 6.8 QoQ growth.The consumer services industry posted 18.1% QoQ growth. The total number of active customers stood at 143 as of September 30, 2021 versus 135 as of June 30, 2021. The company has 10,375 employees as of September 30, 2021 versus 9,512 employees. until June 30, 2021. “

The brokerage's perspective on Zensar Technologies Ltd

The brokerage’s perspective on Zensar Technologies Ltd

The brokerage noted in its report that “Zensar has seen a recovery in the high-tech and manufacturing sectors, after mixed performance in recent quarters. Zensar rethought the vertical of high tech, manufacturing and emergence with an emphasis on the new logo. Hunt. There is strong traction in Supply Chain 4.0, Connected Supply Chain, and Connected Experiences. The company is optimistic about the demand for digital services. Zensar continues to strengthen its marketing and the declared areas of intervention. With this in mind, the company has completed the acquisition of M3bi, which expands and strengthens advanced engineering and data analysis capabilities. We expect strong revenue growth going forward and expect 15.7% / 17% / 12.4% revenue growth over FY22E / FY23E / FY24E, respectively. “

HDFC Securities asserted that “Zensar’s strong organic growth of over ~ 5% QoQ in terms of USD for two consecutive quarters indicates that its renewed strategy is on the right track. Growth in S1FY22 was widespread and strong revenue growth momentum is expected to continue in S2FY22, however, there may be a marginal impact due to holidays in T3FY22. We expect Zensar to focus on winning market share, which will help them accelerate revenues in the future. Given the outlook for healthy growth and the expectation of a solid set of numbers going forward, we now have revised earnings and an increase in the target share price. “

Buy Zensar Technologies Ltd declares HDFC Securities

Buy Zensar Technologies Ltd declares HDFC Securities

The brokerage said in its latest report that Zensar reported an addition of healthy clients to T2FY22. Customer exploration and the addition of new logos are expected to further increase revenue. We believe Zensar Tech will generate long-term, sustainable growth driven by a healthy transaction pipeline and strong execution. Zensar has experienced organic and inorganic growth over the years. Boosting transactions, income from annuities, increased investment in sales and talent, leadership and integrated acquisition to build capacity bodes well for long-term revenue growth. The company has established an EBITDA margin in the range of 17-18%, which will be a key control. “

HDFC Securities further stated that “we believe the fair value of the stock’s benchmark case is Rs 575 (23x EPS Dec. Investors can buy in the Rs 514-524 band and add further declines in the band Rs 458-468 (18.5x December BPA FY23E). At LTP of Rs 518.7, the stock is trading at 20.7x December BPA FY23E. “

Warning

Warning

The stock was featured in the HDFC Securities brokerage report. Investing in stocks presents a risk of financial loss. Investors should therefore exercise caution. Greynium Information Technologies, the author and the brokerage are not responsible for any losses caused as a result of decisions based on the article.