Zensar Technologies Q4 Review - Strategy Refresh, Investment In Sales To Aid Growth: Motilal Oswal
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Zensar Technologies Q4 Review - Strategy Refresh, Investment In Sales To Aid Growth: Motilal Oswal

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Motilal Oswal Report

While Zensar Technologies Ltd.’s revenue performance in FY21 (down 12% year-on-year in constant currency terms) was among the weakest in our IT Services coverage due to hit from both Covid-19 and restructuring in its top account (over 20% of revenue), it reported an impressive profit after tax growth (33% YoY), led by 6% Ebitda margin improvement.

The company’s low valuation (13 times FY23E price-to-earning) is on account of its weak topline performance over the last two years.

With a new leadership (Ajay Bhutoria took over in January 2021), refreshed strategy, and reinvestment of margin gains in sales, we expect it to return to sustainable growth from H2 FY22.

Click on the attachment to read the full report:

Motilal Oswal Zensar Technologies Q4FY21 Resutl Review.pdf

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