Stock Analysis

Analysts Have Made A Financial Statement On Zensar Technologies Limited's (NSE:ZENSARTECH) Second-Quarter Report

Published
NSEI:ZENSARTECH

Last week saw the newest quarterly earnings release from Zensar Technologies Limited (NSE:ZENSARTECH), an important milestone in the company's journey to build a stronger business. Zensar Technologies reported ₹13b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of ₹6.82 beat expectations, being 2.9% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Zensar Technologies

NSEI:ZENSARTECH Earnings and Revenue Growth October 25th 2024

Taking into account the latest results, the most recent consensus for Zensar Technologies from twelve analysts is for revenues of ₹52.7b in 2025. If met, it would imply a satisfactory 4.7% increase on its revenue over the past 12 months. Statutory per share are forecast to be ₹28.31, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of ₹52.7b and earnings per share (EPS) of ₹28.67 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹792. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Zensar Technologies analyst has a price target of ₹900 per share, while the most pessimistic values it at ₹650. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Zensar Technologies' rate of growth is expected to accelerate meaningfully, with the forecast 9.6% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 5.2% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.0% annually. Zensar Technologies is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at ₹792, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Zensar Technologies. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Zensar Technologies going out to 2027, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

Valuation is complex, but we're here to simplify it.

Discover if Zensar Technologies might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

Access Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.