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You are here : IndiaNotes >> Research & Analysis >> Companies >> Zensar Technologies Ltd. >> Research

Zensar Technologies Q3FY17: Firstcall are overweight for medium term investment

Firstcall India Equity | 31 Jan, 2017  | Follow Author | Add to my Favourites 
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SYNOPSIS

  • Zensar Technologies Ltd. is a globally renowned software services company that specializes in providing a complete range of Software Services and Solutions.
  • During Q3 FY17, consolidated net profit stood at Rs. 818.00 mn against Rs. 713.50 mn in Q3 FY16, higher by 14.65%.
  • Consolidated revenue for the quarter rose by 4.22% to Rs. 7877.20 mn from Rs. 7558.10 mn, when compared with the prior year period.
  • During the quarter, consolidated EBIDTA is Rs. 1285.70 mn as against Rs. 1195.60 mn in Q3 FY16, grew by 7.54%.
  • During Q3 F Y17, consolidated PBT up by 9.95% to Rs. 1165.40 mn from Rs. 1059.90 mn in Q3 F Y16.
  • EPS of the company stood at Rs. 18.26 a share during the quarter, as against Rs. 16.02 per share over previous year period.
  • Zensar Technologies has recommended payment of Interim Dividend at the rate of Rs. 5/- per Equity Share of Rs.10/- each (50%) of the Company for the FY 2016-17.
  • For the nine months ended December 31, 2016, Net Sales stood at Rs. 2316600 mn from Rs. 22204.30 mn in the corresponding period of last year.
  • Net Profit during 9M FY17 stood at Rs. 2297.80 mn as compared to Rs. 2387.70 mn for the nine months ended 31st December 2015.
  • Net Sales and PAT of the company are expected to grow at a CAGR of 9% and 10% each over 2015 to 2018E, respectively.


OUTLOOK AND CONCLUSION

  • At the current market price of Rs. 906.10, the stock P/E ratio is at 13.09 x FY17E and 11.73 x FY18E respectively.
  • Earning per share (EPS) of the company for the earnings for F Y17E and FY18E is seen at Rs. 69.24 and Rs. 77.23 respectively.
  • Net Sales and PAT of the company are expected to grow at a CAGR of 9% and 10% each over 2015 to 2018E, respectively.
  • On the basis of EV/EBITDA, the stock trades at 7.83 x for FY17E and 6.98 x for FY18E.
  • Price to Book Value of the stock is expected to be at 2.40 x and 2.03 x for FY17E and FY18E respectively.
  • Hence, we say that, we are Overweight in this particular scrip for Medium term investment.

 


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About Firstcall India Equity

Firstcall India Equity of Firstcall India Equity Advisors Pvt. Limited (FIEA), is a leading financial services provider in India and a SEBI Registered Category-I Merchant Banker. FIEA is a culmination of a credible Equity Research Capabilities, Long Standing Relationship with leading FIIs, DFIs, MFs, Overseas Pension Funds etc. The company’s research caters to the needs of the largest news wire and media houses of the world namely Reuters, Thomson, Capital IQ, Themarkets.com, Emerging Markets Euro money Publications-UK. The Company is among the major players in the Debt and Equity markets.


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Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor IndiaNotes.com accept any liability whatsoever arising from the use of any of the above contents.




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