Zensar Tech share price surges 12% after healthy Q4 result, upbeat management commentary

Zensar Tech share price: Shares of Zensar Technologies witnessed strong buying interest, surging as much as almost 12 per cent, in intraday trade on Friday, April 26, a day after the company reported its March quarter scorecard. Zensar Tech share price opened at ₹596.65 against its previous close of ₹575.20 and surged 11.6 per cent to the level of ₹641.75 on BSE. Around 11 am, Zensar Tech share price traded 9.64 per cent higher at ₹630.65 apiece. Equity benchmark Sensex was 0.21 per cent down at 74,179.63 at that time.

Zensar Tech share price has surged as much as 115 per cent over the last year (as of April 25). Equity benchmark Sensex has gained about 24 per cent in the same period.

After market hours on April 25, Zensar Technologies said its consolidated revenue from operations for the March quarter (Q4) of the last financial year (FY24) climbed 2 per cent quarter-on-quarter (QoQ) to ₹1,229.7 crore against ₹1,204.1 crore in Q3FY24.

Net profit for the quarter under review rose 7.2 per cent QoQ to ₹1,733 crore from ₹1,617 in the previous quarter.

Also Read: Bajaj Finance share price falls 7% after Q4 result; Motilal Oswal downgrades stock

The management's optimistic commentary on Q4 numbers appears to have influenced investors.

"Sequential growth across all our verticals is a testimony of our robust strategy and our bias towards execution excellence. We expanded our market reach with the help of our diversified service offerings. We continue to focus on client and employee satisfaction as our primary pillars of success. Our results give us the confidence to continue strategic investments in our service lines and enhance our capabilities in new age technologies such as Gen AI to foster innovation and deliver growth," said Manish Tandon, CEO and Managing Director, Zensar.

"We have achieved strong financial results for FY24 owing to our focused efforts towards operational excellence and margin improvement tracks, which helped us improve our EBITDA by 640 bps to 17.8 per cent and PAT by 690 bps to 13.6 per cent on a YoY basis," said Sachin Zute, CFO, Zensar Tech.

"Our cash stood at $261.7 million and we further improved our DSO to 73 days at the end of FY24. We continue to have strong momentum in our order book which grew by 22 per cent YoY and stood at $698 million for the year. For Q4FY24, our reported revenue is $148.1 million growth of 2.4 per cent sequentially and 2 per cent in constant currency. EBITDA margin for Q4 stood at 16.5 per cent which is above our guided range," said Zute.

Meanwhile, brokerage firm Nirmal Bang has maintained a 'sell' call on Zensar Tech stock with a target price of ₹526. The brokerage firm has pared EPS (earnings per share) estimates for FY26-FY27 by nearly 2-3 per cent after Q4 results, primarily due to USD revenue cuts.

"We reiterate ‘sell’ .on Zensar with a lower target price of ₹526 based on 16.6 times March 2026E EPS. We have accorded a discount of 30 per cent to the target PE multiple of TCS. The high discount reflects the lack of visibility on growth pick-up," Nirmal Bang said.

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