Zensar Technologies shares hit record high; buy, sell or hold ?

Zensar Technologies Q3 earnings: Shares of IT firm Zensar Technologies zoomed 15% to a record high in early deals today after the firm reported its Q3 earnings. Zensar Technologies stock gained 14.88% to Rs 862.20 against the previous close of Rs 750.50 on BSE. Market cap of the firm climbed to Rs 19,449.25 crore.   

The firm posted a 10% rise in revenue in the last quarter. Revenue climbed to Rs 1325.6 crore in Q3 from Rs 1204.1 crore in the year ago period. 

Net profit fell 1.2% year-on-year (YoY) in net profit at Rs 159.8 crore for the third quarter against Rs 161.7 crore in the corresponding quarter of the previous fiscal. 

EBITDA fell 0.3% to Rs 207 crore in Q3 of this fiscal against Rs 207.6 crore in the corresponding period in the previous fiscal. EBITDA margin slipped to 15.6% in Q3 as compared to 17.2% in Q3 of the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.

Brokerage Nuvama has a hold call on the Zensar stock. It said it posted a decent Q3FY25 earnings–beating the brokerage's estimates.

"Zensar delivered a decent Q3 on an organic basis even as furlough hurt growth in key verticals. It is now trading at 24x FY26E PE—significantly higher than its historical average (13x, 10 year)—rendering the risk-reward unfavourable. We believe Zensar needs to show superior consistent revenue and earnings growth to justify its current valuation; Retain ‘HOLD/SU’ on relatively lower earnings growth profile," said Nuvama. 

Motilal Oswal said Q3 earnings beat estimates. It has a neutral call on the stock  and sees a 13% upside 

"We expect the firm to deliver EBITDA margin of 15.6%/15.9%/16.3% in FY25/ FY26/FY27. This will result in an PAT CAGR of 8.0% over FY24-27E. We have raised our FY25/FY26/FY27 estimates by ~5%, supported by a decent 3Q print in a seasonally weak quarter and a robust order book. Our target price of Rs 850 is based on 23x FY27E EPS. Retain Neutral," said the brokerage. 

Antique Broking has assigned a price target of Rs 850, an upside of 4% to the price of Rs 750. 

The brokerage said Q3 performance was decent with better growth expected in Q4. 

"We maintain BUY rating and increase the target price to Rs 850 (from Rs 820) as we increase our EPS estimates marginally. We continue to value the Zensar stock at 22x on FY27 EPS, which is at 25% discount compared to the average multiple for other large-caps mid-cap peers in its league," said Antique.

With today's rally, Zensar Technologies stock has risen 57% in a year. The stock has delivered 14.45% returns in 2025.  

Total 3.28 lakh shares changed hands amounting to a turnover of Rs  28.18 crore on BSE. Zensar Technologies stock hit a 52-week low of Rs 512.80 on March 14, 2024. 

In terms of technicals, the relative strength index (RSI) of Zensar Technologies stands at 46.7, signaling it's trading neither in the overbought nor in the oversold zone. Zensar Technologies stock has a one-year beta of 1.1, indicating average volatility during the period. Zensar Technologies shares are trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day and 200 day moving averages.