Stock Analysis

Zensar Technologies Limited (NSE:ZENSARTECH) Full-Year Results Just Came Out: Here's What Analysts Are Forecasting For This Year

NSEI:ZENSARTECH
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Investors in Zensar Technologies Limited (NSE:ZENSARTECH) had a good week, as its shares rose 7.9% to close at ₹621 following the release of its yearly results. Zensar Technologies reported ₹49b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of ₹29.13 beat expectations, being 3.6% higher than what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Zensar Technologies

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NSEI:ZENSARTECH Earnings and Revenue Growth April 28th 2024

Following the latest results, Zensar Technologies' eight analysts are now forecasting revenues of ₹52.6b in 2025. This would be an okay 7.3% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be ₹29.36, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹52.9b and earnings per share (EPS) of ₹27.94 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at ₹652, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Zensar Technologies analyst has a price target of ₹710 per share, while the most pessimistic values it at ₹570. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Zensar Technologies is an easy business to forecast or the the analysts are all using similar assumptions.

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 7.3% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.6% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.6% 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 biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Zensar Technologies' earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. 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..

You can also see our analysis of Zensar Technologies' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

Valuation is complex, but we're helping make it simple.

Find out whether Zensar Technologies is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.