Synopsis: The article discusses the remarkable 12% surge in Zensar Technologies' stock price following the announcement of its healthy Q4 results and positive commentary from company management. It highlights the key factors contributing to the stock's rise, including the Q4 performance metrics and management's optimistic outlook. Additionally, it briefly mentions the market reaction and provides an overview of brokerage firm recommendations regarding the stock.
Zensar Technologies experienced a significant surge in its stock price, rallying by nearly 12% during trading on April 26, following the release of its Q4 financial results.
This surge was particularly noteworthy given that it occurred just a day after the company announced its quarterly performance.
The stock opened at INR 596.65, showing a strong upward momentum from the previous closing price of INR 575.20, and peaked at INR 641.75 on the BSE.
Even by mid-morning, it continued to trade impressively at INR 630.65, while the broader market index, Sensex, experienced a slight decline of 0.21% to 74,179.63.
Over the past year, Zensar Tech's stock has exhibited exceptional growth, skyrocketing by an astonishing 115%, significantly outpacing the 24% increase seen in the Sensex during the same period.
The Q4 FY24 financial report revealed positive trends for Zensar Technologies, with a 2% quarter-on-quarter increase in consolidated revenue to INR 1,229.7 crore and a notable 7.2% quarter-on-quarter rise in net profit to INR 1,733 crore.
The management's optimistic commentary on the quarterly performance resonated well with investors, reflecting confidence in the company's strategic direction and operational execution.
CEO and Managing Director, Manish Tandon, attributed the growth to the company's robust strategy, diversified service offerings, and unwavering focus on client and employee satisfaction. Meanwhile, CFO, Sachin Zute, emphasized the company's commitment to operational excellence, margin improvement efforts, and the achievement of strong financial results for FY24.
Despite the positive performance and outlook, brokerage firm Nirmal Bang maintains a cautious stance on Zensar Tech's stock, retaining a 'sell' rating with a target price of INR 526.
The firm adjusted its earnings per share (EPS) estimates for FY26-FY27 downwards due to USD revenue adjustments and cited concerns about the visibility of future growth prospects as the basis for its recommendation.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies. We advise investors to check with certified experts before making any investment decisions.
