Zensar Technologies Limited
Zensar Technologies Limited Fundamental Analysis
Zensar Technologies Limited (ZENSARTECH.NS) shows moderate financial fundamentals with a PE ratio of 17.37, profit margin of 13.23%, and ROE of 18.37%. The company generates $55.9B in annual revenue with moderate year-over-year growth of 7.73%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 80.6/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze ZENSARTECH.NS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentZENSARTECH.NS demonstrates superior asset utilization.
Valuation Score
ModerateZENSARTECH.NS shows balanced valuation metrics.
Growth Score
ModerateZENSARTECH.NS shows steady but slowing expansion.
Financial Health Score
ExcellentZENSARTECH.NS maintains a strong and stable balance sheet.
Profitability Score
ModerateZENSARTECH.NS maintains healthy but balanced margins.
Key Financial Metrics
Is ZENSARTECH.NS Expensive or Cheap?
P/E Ratio
ZENSARTECH.NS trades at 17.37 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ZENSARTECH.NS's PEG of 3.04 indicates potential overvaluation.
Price to Book
The market values Zensar Technologies Limited at 3.01 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 13.00 times EBITDA. This signals the market has high growth expectations.
How Well Does ZENSARTECH.NS Make Money?
Net Profit Margin
For every $100 in sales, Zensar Technologies Limited keeps $13.23 as profit after all expenses.
Operating Margin
Core operations generate 22.78 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.37 in profit for every $100 of shareholder equity.
ROA
Zensar Technologies Limited generates $13.68 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Zensar Technologies Limited generates limited operating cash flow of $3.06B, signaling weaker underlying cash strength.
Free Cash Flow
Zensar Technologies Limited produces free cash flow of $2.84B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $12.51 in free cash annually.
FCF Yield
ZENSARTECH.NS converts 2.21% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.37
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.005
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.29
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.71
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.28
vs 25 benchmark
How ZENSARTECH.NS Stacks Against Its Sector Peers
| Metric | ZENSARTECH.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.37 | 34.49 | Better (Cheaper) |
| ROE | 18.37% | 1124.00% | Weak |
| Net Margin | 13.23% | -133673.00% (disorted) | Strong |
| Debt/Equity | 0.04 | 7.86 | Strong (Low Leverage) |
| Current Ratio | 3.71 | 5.81 | Strong Liquidity |
| ROA | 13.68% | -308769.00% (disorted) | Strong |
ZENSARTECH.NS outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Zensar Technologies Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
24.46%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
143.13%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
-18.85%
Industry Style: Growth, Innovation, High Beta
Declining