- Change in management which could possibly be
a TURNAROUND for the CO๐
- Part of ace investor: ASHISH DHAWAN's Portfolio
- Base breakout + increasing with volumes โก
Let's analyse: ๐ญ๐๐ก๐ฆ๐๐ฅ๐ง๐๐๐
[A brief analysis] ๐งต๐งต๐งต
(1/24)
#finance #StocksToBuy #Zensartech
a TURNAROUND for the CO๐
- Part of ace investor: ASHISH DHAWAN's Portfolio
- Base breakout + increasing with volumes โก
Let's analyse: ๐ญ๐๐ก๐ฆ๐๐ฅ๐ง๐๐๐
[A brief analysis] ๐งต๐งต๐งต
(1/24)
#finance #StocksToBuy #Zensartech
We will analyze: ๐๐ป
- COMPANY OVERVIEW
- MORE ABOUT THE CO
- MANAGEMENT CHANGE
- BUSINESS SEGMENT & REVENUE CONTRIBUTION
- STRENGTH
- CHALLENGES
- BRIEF FINANCIALS
- TECHNICAL OVERVIEW ๐
(2/24)
- COMPANY OVERVIEW
- MORE ABOUT THE CO
- MANAGEMENT CHANGE
- BUSINESS SEGMENT & REVENUE CONTRIBUTION
- STRENGTH
- CHALLENGES
- BRIEF FINANCIALS
- TECHNICAL OVERVIEW ๐
(2/24)
- COMPANY OVERVIEW:
Zensar is a mid-size IT software and infrastructure services and solutions provider with industry expertise across manufacturing (Hitech and Industrial), retail, insurance, banking and financial services. ๐ป
(3/24)
Zensar is a mid-size IT software and infrastructure services and solutions provider with industry expertise across manufacturing (Hitech and Industrial), retail, insurance, banking and financial services. ๐ป
(3/24)
The company delivers comprehensive services for mission-critical applications, enterprise applications, business intelligence and analytics, business process management and digital services. โ
(4/24)
(4/24)
- MORE ABOUT CO:
Zensar has operations across the US, the UK, Europe and SA. Zensar is a part of the diversified RPG Group with a presence in infrastructure, Tyres, technology, and pharmaceuticals. โก
Zensar's comprehensive range of software services and solutions - โฌ
(5/24)
Zensar has operations across the US, the UK, Europe and SA. Zensar is a part of the diversified RPG Group with a presence in infrastructure, Tyres, technology, and pharmaceuticals. โก
Zensar's comprehensive range of software services and solutions - โฌ
(5/24)
enable its more than 140 customers to cross new thresholds of business performance.
CO is present across the whole value chain of IT and IT enabled services from IT consulting, application development and maintenance to package implementation and BPO operations. ๐ช๐ป
(6/24)
CO is present across the whole value chain of IT and IT enabled services from IT consulting, application development and maintenance to package implementation and BPO operations. ๐ช๐ป
(6/24)
- MANAGEMENT CHANGE:
In Dec 2022 Manish Tandon, who has over 27 years of industry experience with a track record of achieving industry-leading revenue and profit growth joined the company as the Managing Director. โ
(7/24)
In Dec 2022 Manish Tandon, who has over 27 years of industry experience with a track record of achieving industry-leading revenue and profit growth joined the company as the Managing Director. โ
(7/24)
Mr. Tandon had a 20-year-long career at Infosys Limited where he led a $2Billion+ global healthcare, financial, insurance, life sciences and technology business.
He has been a Board Member of Infosys Lodestone and Infosys Public Services. โ
(8/24)
He has been a Board Member of Infosys Lodestone and Infosys Public Services. โ
(8/24)
He is currently an advisor to leading US-based Private Equity COs.
He was also the CEO of CSS Corp for 5 yrs, a technology services CO.
This management change could possibly bring a turnaround story for Zensartech Ltd. ๐
More about him: linkedin.com
(9/24)
He was also the CEO of CSS Corp for 5 yrs, a technology services CO.
This management change could possibly bring a turnaround story for Zensartech Ltd. ๐
More about him: linkedin.com
(9/24)
- BUSINESS SEGMENTS:
Digital & Application Services ๐
(83% of total rev FY22):
Includes Custom Applications Management Services that include App Development, Maintenance, Support, Modernization & Testing Services across a wide technology spectrum & Industry verticals.
(10/24)
Digital & Application Services ๐
(83% of total rev FY22):
Includes Custom Applications Management Services that include App Development, Maintenance, Support, Modernization & Testing Services across a wide technology spectrum & Industry verticals.
(10/24)
Digital Foundation Services ๐
(~17% of total revenue in FY22):
Infrastructure management services includes Hybrid IT, Digital workplace, Dynamic Security and Unified IT provided under managed service platform using automation, autonomics and machine learning.
(11/24)
(~17% of total revenue in FY22):
Infrastructure management services includes Hybrid IT, Digital workplace, Dynamic Security and Unified IT provided under managed service platform using automation, autonomics and machine learning.
(11/24)
- STRENGTHS: ๐ช๐ป
Zensar is part of the RPG Group, which has a diversified presence in infrastructure, tyres, technology and pharmaceuticals.
It derives financial flexibility and benefits from the strong management lineage of the Group.
(12/24)
Zensar is part of the RPG Group, which has a diversified presence in infrastructure, tyres, technology and pharmaceuticals.
It derives financial flexibility and benefits from the strong management lineage of the Group.
(12/24)
Company has a Diversified presence across various service lines and verticals.
Supported by the healthy demand, the company secured sizeable new orders in FY2022, translating into TCV worth $576 million in FY2022.
(13/24)
Supported by the healthy demand, the company secured sizeable new orders in FY2022, translating into TCV worth $576 million in FY2022.
(13/24)
The order inflow has a healthy mix of large and mid-sized deals supported by multiple wins across verticals.
Also, in Q4 FY2022, around 40% of the deal wins were from new clients. ๐๐
(14/24)
Also, in Q4 FY2022, around 40% of the deal wins were from new clients. ๐๐
(14/24)
Coupled with healthy demand outlook for digital and cloud-based services, this provides revenue visibility to the CO. โ
(15/24)
(15/24)
- CHALLENGES: โ
Given the intense competition in industry, Zensarโs OPM are susceptible to pricing pressures & wage inflation.
Further, much of the revenues and margins are exposed to forex risks, although the CO's hedging mechanisms mitigate the same to an extent.
(16/24)
Given the intense competition in industry, Zensarโs OPM are susceptible to pricing pressures & wage inflation.
Further, much of the revenues and margins are exposed to forex risks, although the CO's hedging mechanisms mitigate the same to an extent.
(16/24)
Being in a highly labour-intensive business, the availability and retention of a skilled workforce are the key challenges. โ
Zensarโs margin has been impacted in FY2022, owing to increased cost of delivery because of considerable wage cost inflation.
(17/24)
Zensarโs margin has been impacted in FY2022, owing to increased cost of delivery because of considerable wage cost inflation.
(17/24)
Zensar is also exposed to macroeconomic uncertainties and any adverse regulatory/ legislative changes in its key operating markets of USA, Europe and South Africa. ๐
(18/24)
(18/24)
- BRIEF FINANCIALS: ๐ฐ
COโs financial profile remains strong as reflected in its high operating profitability, strong capital structure and robust liquidity position in the form of a strong cash and investment balance of Rs. 1,180 Crores as on March 31, 2022.
(19/24)
COโs financial profile remains strong as reflected in its high operating profitability, strong capital structure and robust liquidity position in the form of a strong cash and investment balance of Rs. 1,180 Crores as on March 31, 2022.
(19/24)
MCAP: Rs 6,014 Crores. โ
Companyโs stock P/E is 17.8 compared to industryโs P/E 32.8. Companyโs EV/EBIT ratio is 11.8 and companyโs OPM is 11.3%.
CO has delivered good profit growth of 12% CAGR over last 5 years. Companyโs ROE is 21.1% and ROCE is 16.36%.
(20/24)
Companyโs stock P/E is 17.8 compared to industryโs P/E 32.8. Companyโs EV/EBIT ratio is 11.8 and companyโs OPM is 11.3%.
CO has delivered good profit growth of 12% CAGR over last 5 years. Companyโs ROE is 21.1% and ROCE is 16.36%.
(20/24)
- TECHNICAL OVERVIEW ๐
We can see that stock was in a huge downtrend.
Then, it formed a base where it consolidated for 6M.
And, now it broke out of the consolidation and moving up with increasing volumes.
Stock has also regained key EMAs with closing above them.
(21/24)
We can see that stock was in a huge downtrend.
Then, it formed a base where it consolidated for 6M.
And, now it broke out of the consolidation and moving up with increasing volumes.
Stock has also regained key EMAs with closing above them.
(21/24)
- CONCLUSION
This CO should be tracked definitely as what it seems to be a turnaround may be a good beaten down bet from this industry. ๐ฐ
What do you think?
Is this a turnaround or just a short term storyโ
Let us know, with a reason if possible! โ
(22/24)
This CO should be tracked definitely as what it seems to be a turnaround may be a good beaten down bet from this industry. ๐ฐ
What do you think?
Is this a turnaround or just a short term storyโ
Let us know, with a reason if possible! โ
(22/24)
And, that's a wrap.
If you liked the analysis, make sure to like and retweet the FIRST TWEET to show support and share with maximum investors! โป๏ธ
Do share your views on this CO in the comments below. ๐ฉ
(23/24)
If you liked the analysis, make sure to like and retweet the FIRST TWEET to show support and share with maximum investors! โป๏ธ
Do share your views on this CO in the comments below. ๐ฉ
(23/24)
Disclaimer: This Twitter thread is for educational and knowledge-sharing purposes only. We are not associated with the company in any form. This is not a buy/sell/hold recommendation of any kind. Kindly consult with your financial advisor before taking any action.
(24/24)
(24/24)
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