Zensar Technologies Limited (NSE:ZENSARTECH) Just Reported And Analysts Have Been Lifting Their Price Targets

Zensar Technologies Limited (NSE:ZENSARTECH) came out with its first-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Results overall were respectable, with statutory earnings of ₹6.91 per share roughly in line with what the analysts had forecast. Revenues of ₹13b came in 2.1% ahead of analyst predictions. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Zensar Technologies

Taking into account the latest results, the consensus forecast from Zensar Technologies' eleven analysts is for revenues of ₹52.9b in 2025. This reflects a satisfactory 6.7% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be ₹29.10, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of ₹52.4b and earnings per share (EPS) of ₹29.16 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 11% to ₹810. It looks as though they previously had some doubts over whether the business would live up to their expectations. 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 ₹885 per share, while the most pessimistic values it at ₹720. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Zensar Technologies' growth to accelerate, with the forecast 9.0% annualised growth to the end of 2025 ranking favourably alongside historical growth of 4.8% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 7.9% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Zensar Technologies is expected to grow at about the same rate as the wider industry.

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. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Zensar Technologies going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Zensar Technologies that you need to take into consideration.

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.

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