Zensar Technolgies Ltd.
NSE: ZENSARTECHZensar Technolgies Ltd.: A 30-second snapshot
Zensar Technologies (₹488.40) is a mid-cap IT services company trading 44.46% below its 52-week high and 35.25% lower over one year, with price below both SMA-50 (₹545.07) and SMA-200 (₹687.33). The most recent quarter showed a 23% sequential PAT increase and a 122.9% sequential surge in order book, alongside the company declaring its highest-ever dividend of ₹12.60 per share. Five-year earnings growth of 19.2% and a debt-to-equity ratio declining over time contrast with thin profit margins (7.27%) and below-peer qualityScore (51 of 100) relative to large-cap IT names.
P/E
14.5
Forward P/E
12.5
ROE
—
Debt / Equity
1.68
Profit Margin
+7.3%
Div. Yield
+2.7%
5Y ROE > 15%
3/5
5Y FCF > 0
4/5
Quality
58/100
News
6 headlines · 4 positive · 1 negative
Zensar Technologies Approves Highest-Ever Dividend — Check Details Here - NDTV Profit
NDTV Profit
Zensar Tech Q4 EBIT Falls to ₹2.10B, Margin Drops to 14.70% Quarter-on-Quarter - scanx.trade
scanx.trade
Zensar Tech Q4 Profit Jumps 23% Sequentially; Board Declares ₹12.60 Dividend - Trade Brains
Trade Brains
ZENSARTECH: Q4 FY26 revenue up 1.0% YoY, PAT margin rises, and order book surges 122.9% sequentially - TradingView
TradingView
Despite negative returns for up to two years, Zensar Tech stock may rise 23%- check rationale - Business Today
Business Today
Recent context
- ·Q4 FY26 results (reported April 24, 2026) showed PAT up 23% sequentially and revenue up 1.0% YoY, with order book surging 122.9% sequentially — the strongest reported operational quarter in recent history — alongside a record ₹12.60 dividend declaration.
- ·Q4 FY26 EBIT fell to ₹2.10B with margin compressing quarter-on-quarter, tempering the headline PAT growth and pointing to cost or mix headwinds that offset revenue gains.
- ·A Business Today article (April 28, 2026) noted the stock had delivered negative returns for up to two years and cited an analyst price target implying 23% upside; analyst count stands at 12 with no mean rating available in the dataset.
Strengths
- +Five-year earnings CAGR of 19.2% alongside a consistency score of 79, with free cash flow positive in 4 of available years and a falling debt trend (D/E at 1.68).
- +Dividend yield of 2.74% supported by a record ₹12.60 per share declaration in April 2026, indicating management confidence in near-term cash generation.
- +Q4 FY26 order book grew 122.9% sequentially, the largest reported sequential jump in recent periods; Q4 PAT rose 23% sequentially.
- +Trailing PE of 14.54 and forward PE of 12.55 position the stock at the lowest PE among 6 IT peers tracked (ranked 1st of 6), with sector peers ranging from ~14.6x (Infosys) to 25.3x (Tech Mahindra).
Weaknesses
- −Price is 44.46% below the 52-week high, has declined 35.25% over 12 months and 20.42% over 3 months; the technical model identifies no support levels, with the nearest resistance at ₹537 (10.0% above current price).
- −ROE data is unavailable for the current period; roeYearsAbove15 is 3 of available years compared to TCS at 48.4% ROE and Infosys at 31.44% ROE, pointing to a structural gap in capital efficiency versus large-cap peers.
- −Profit margin of 7.27% and 5-year revenue growth of 6.7% are below the large-cap IT peer range; Q4 FY26 EBIT margin fell quarter-on-quarter to 14.70%, indicating near-term margin pressure.
- −QualityScore of 51 ranks 3rd of 6 in the IT peer group; only HCLTECH (40) ranks lower on this metric among the five named comparables.
Open questions
- ?Does the 122.9% sequential order book surge reflect a genuine step-change in deal win momentum, or could it partly reflect rescheduling or bundling of previously deferred contracts?
- ?How does the gap between 19.2% five-year earnings growth and only 6.7% five-year revenue growth decompose — what margin or cost levers have driven earnings ahead of revenue, and are those levers sustainable?
- ?Given that the stock is 44.46% below its 52-week high while the company just declared its highest-ever dividend, what factors does the market appear to be pricing in that the reported financials do not yet capture?
- ?How does Zensar's 7.27% profit margin compare to its own historical range, and at what revenue scale or client mix would the company need to operate to reach margins comparable to Infosys (which carries a meaningfully higher ROE at 31.44%)?
Peer comparison: IT
Ranks 3 of 6 on qualityTechnical state
Current price
₹488.40
SMA 50
₹545.07
SMA 200
₹687.33
RSI (14)
33.4 (neutral)
From 52w high
-44.5%
1Y return
-35.3%
3M return
-20.4%
50-DMA
Below
200-DMA
Below
Algorithmic resistance levels
Risk flags
- highPrice is 44.46% below its 52-week high and has declined 35.25% over the past year; trades below both SMA-50 (₹545.07) and SMA-200 (₹687.33), with the current price at ₹488.40. No support levels are identified by the technical model, while resistance sits at ₹537, ₹574.65, and ₹583.
- mediumROE data is unavailable for the current period; roeYearsAbove15 covers only 3 of available years, and qualityScore of 51 ranks 3rd of 6 IT peers. For comparison, TCS ROE is 48.4% and Infosys ROE is 31.44%.
- mediumProfit margin of 7.27% and 5-year revenue growth of 6.7% both lag the large-cap IT peer set. Q4 FY26 EBIT fell to ₹2.10B with margin compressing quarter-on-quarter, indicating near-term profitability pressure.
- lowNews sample is sparse at 6 articles total; sentiment data rests on a small base, limiting confidence in the positive (4/6) overallLabel.
Cross-section contradictions
- Earnings growth of 19.2% over 5 years, a consistency score of 79, falling debt trend, and a record dividend declared in April 2026 co-exist with a 35.25% price decline over 12 months and a position 44.46% below the 52-week high — a marked divergence between improving operating metrics and sustained negative price action with no identified negative news catalyst.
- Q4 FY26 PAT jumped 23% sequentially and the order book surged 122.9% sequentially, yet the 3-month price change is −20.42%, suggesting the market has not reflected these reported operational improvements in price.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days