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Neutral Zensar; target of Rs 740: Motilal Oswal

Published on 28/04/2025 04:06 PM

Motilal Oswal's research report on Zensar

ZENT reported a decent 4QFY25, with revenue growth of 0.9% QoQ CC (est. decline 0.5% CC). BFSI/TMT grew 3.4%/1.7% QoQ CC, while HLS and Manufacturing declined 1.4%/2.6% QoQ CC. Deal TCV: bookings came in at USD213.5m (up 4.0% QoQ/17.6% YoY) and the book-to-bill was 1.4x. EBIT margin was 13.9% (est. 14.0%), up 10bp QoQ. PAT of INR1,764m (up 10.4% QoQ/1.7% YoY) beat our estimate of INR1,661m, led by other income. For FY25, revenue grew 5.4%, whereas EBIT/PAT declined 3.1%/2.3% YoY.

Outlook

For 1QFY26, we expect revenue/EBIT/PAT to grow by 7.0%/8.7%/9.1% YoY. Our TP of INR 740 is based on 21x FY27E EPS. Reiterate Neutral.

For all recommendations report, click here

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Zensar - 28042025 - moti

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