Why investors can’t get excited about the huge correction in Zensar

Near-term weakness on several counts makes Zensar vulnerable

Madhuchanda Dey
September 08, 2022 / 09:58 AM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook

The stock of Zensar Technologies (CMP: Rs 229 Market Cap: Rs 5182 crore) has corrected 38 percent against the IT index of 22 percent and nearly flat Nifty since the beginning of the current fiscal. While the correction merits attention, the question is whether it is a right buy or a judicious avoid at this juncture. After a lacklustre FY21 that was in sharp contrast to its peers, FY22 was sort of a turnaround year for Zensar. Under the new...