Zensar technologies

On 5th Sep, Zensar closed above 471 with above average volume.

The result of breakout was seen **yesterday **with rising fresh demand. Price rise +7.74% with 131% rise in volume.

Sine last few months Zensar is aggressive on growth with Acquisition, Tie ups, new orders etc. Recently secured multi-million orders from Europe.

Kunal
Invested long with 7%


Buying continues for Zensar with further 10%

However 5 days avg delivery is 40%.

Hi Hitesh,

Can you please elaborate on the promoter quality (Goenka’s)? I tried to search for some evidence to see if there has been any malpractice but could not find any. May be I missed something. I am already invested and looking to add more and hence want to make sure that I am not missing something big. Are Goenka’s bad because of taking shareholders for a ride or due to their capital allocation capability?

Your response would be highly appreciated.

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Dear Boarders,

Funds advised by Apax Partners acquires 23.2% stake in Zensar Technologies Limited.

Anybody tracking this Company?? Views invited…

Disc - Invested for more than 1 year and forms approx 10% of the portfolio.

This thread has been dead for quite a while now.

Recent correction & deals in digital space signed by the company & accolades & recognition, definitely make it a case for core long term holdings.

Views invited. Any old timers who are still holding this gem.

Disclosure: Invested & significant holding.

Promoters have been buying shares from the secondary market lately.

Zensar tech look poise for digital offering…Acquired new company keystone to boost digital supply chain and omni channel offering…

Almost no debt and good dividend yield, Profit growth is decent qoq basis, sales qoq is in mid single digits…

They are moving away from Infrastructure management, Application Management to digital solutions and digital commerce solution. Currently, suffering from the curse of IT pack but overall looks to be a value buy.

Any views ? It is small firm and has a small base effect. It does not need to pay for 50-100k no of employees, so has better cost structure fundamentally than other IT blue chip providers . It looks to have good cost structure and ROE, ROIC.

Views invited? Does anyone know there historical Average PE ratio ?

Disc: Thinking of investing here. Not invested yet.

my 2 cents here. I am not invested in this company. But, the profile, I am working now, has a huge business in Zensar, that is Oracle cloud SCM implementation.
Zensar’s direct competitors are KPIT and Inspirage, Zensar is doing good in this sector, they have good number of new cloud based project under their belt.
As Oracle is moving from On premise based softwares to cloud based softwares, they are pushing their partners to adopt to this new technologies…
Zensar is a early adopter in this field. and I feel they are doing a good job.
I do not have the numbers to prove. bcz I am not working there, but I know some people who are consultants over there, company is doing good business, paying them well, and hiring new folks every quarter,

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Disc: Invested

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Zensar signs a new deal for 79 million USD for managing the netwrok services for the city of San Diego.

Zensar AR 18 notes
• 100 % digital company , a rare feat
• Have innovation labs in Pune and Hyd
• The Zenlabs team is currently involved in multiple initiatives across Artificial Intelligence, Machine Learning, Augmented Reality, Virtual Reality, Blockchain etc
• Filled 25 + patents
• During the year under review, Zensar helped 15 of its largest clients implement the digital engagement platforms currently in use at our Company.
• Had 2 largest deal wins in history of company, 100 million TCV AND 75 million TCV.
• Digital forms 38.2 % on revenues now. Looking to make it 50-55% in next 3 years
• n FY2017-18, Company has 2 customers in the USD 20 million segment, followed by 2 customers in the USD 10 million, 13 customers in the USD 5 million segment and an encouraging 63 customers in the USD 1 million segment
• Revenue from operations 3182cr vs 3079 cr last year( growth of 3.3 %)
• PBT 351 cr vs 348.57 cr last year (almost flat)
• Almost done with smaller client account pruning till now, hence more focus on growth In the coming years.
• Cynosure, a Guidewire Partner in the area of Property and Casualty Insurance, was acquired in FY18, increasing our opportunities in the insurance sector. Our earlier acquisitions of Keystone and Foolproof have been integrated into the larger strategy, bringing in new customer relationships.


investor presentation explaining the rational behind the new acquistion. Zensar is becoming more and more stronger in dgital capabilities growing organically and inorganically . Seems like an interesting digital story developing.

Disc- Invested

Being a small size company Zensar has an edge to acquire good companies in digital space and cross sell their products to existing clients.
zensar has revenues of around 3100crs /year but the industry legends like TCS, Infosys, HCL, Wipro has revenues from 50000 crs to 1lakh crs so my Logic here is zensar can acquire good digital companies at a range of 50 to 200crs revenue, like they did excellently in case of Fool proof (one of the top design agency in europe). While the legends can only target acquisitions at a range of 5000 crs revenue and above, since digital is an emerging trend so there is very less possibility of getting companies at that huge size. According to my view that’s why all the legends are concentrating on buybacks.
Disc - Invested since 2016

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Zensar partners with PTC ThingWorx to deliver next-generation IoT capabilities
seems like the digital story of zensar seems to be growing stronger and better day by day.
Disc - Invested


zensar is now valued at 24 PE , which is the average valuation in the midcap IT space.
can expect the revenu, profits to compund at 30 % CAGR for next 3 years , but current valuation seems to have priced that in.
Disc- Invested


Analyst/Institutional Meet on 30th August with Zensar Management. Seems like the company is getting a lot of analyst coverage these days.