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This multibagger stock is up 113% this year. ICICI Securities sees more upside

GTPL Hathway shares have surged over 130% in a year's period

1 min read . Updated: 19 Oct 2021, 01:52 PM IST Livemint

From trading around ₹242 per level in early January, the multibagger stock currently hovers near ₹516 apiece

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Shares of Zensar Technologies has outperformed amid the recent bull market rally as the stock has surged 178% in a year's period, whereas it has given multibagger return of over 113% this year (year-to-date or YTD) so far. From trading around ₹242 per level in early January, the multibagger stock currently hovers near ₹516 apiece.

The IT index has taken a breather amid ongoing secular up trend. ICICI Securities in a recent note said that within IT space, Zensar Technologies has been showing resilience by sustaining well above its 50 days EMA.

“We believe the revived traction in IT sector would provide impetus to aforementioned technical evidences and help stock to gradually head towards our earmarked target of ₹595 as it is near the all-time high," the brokerage said. It has a Buy rating on the stock with a target price of ₹595 per share and stop loss of ₹468 with the time frame of three months.

Over the past thee weeks, the stock has undergone slower pace of retracement wherein it retraced 80% of preceding two week’s rally ( ₹428- 587). This highlights robust price structure, auguring well for the next leg of the up move. On the oscillator front, weekly MACD is pointing upward while sustaining above its nine period average. This validates ICICI Securities' positive stance, it added.

Zensar Technologies (Zensar) offers application & IMS services to hi-tech, manufacturing, retail and BFSI. It has grown organically and inorganically over the years. It is net debt free and has a healthy double digit return ratio (with RoCE of 19%).

The company saw healthy growth in the hi-tech vertical led by new logos, healthy demand and ramp up in existing customers. Zensar has aligned its services with client spend, which is helping drive growth. Zensar has also hired leadership to drive growth in the segment.

The company is targeting large deals (via third party advisors and internal team), expanding its hunting sales (has led to one client transition to US$20 million bucket), which will further drive growth.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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