Stock Analysis

Zensar Technologies Limited (NSE:ZENSARTECH) Third-Quarter Results: Here's What Analysts Are Forecasting For Next Year

NSEI:ZENSARTECH
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It's been a pretty great week for Zensar Technologies Limited (NSE:ZENSARTECH) shareholders, with its shares surging 11% to ₹832 in the week since its latest quarterly results. The result was positive overall - although revenues of ₹13b were in line with what the analysts predicted, Zensar Technologies surprised by delivering a statutory profit of ₹6.98 per share, modestly greater than 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 January 26th 2025

After the latest results, the 13 analysts covering Zensar Technologies are now predicting revenues of ₹59.0b in 2026. If met, this would reflect a solid 14% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 15% to ₹32.89. In the lead-up to this report, the analysts had been modelling revenues of ₹58.1b and earnings per share (EPS) of ₹32.18 in 2026. So the consensus seems to have become somewhat more optimistic on Zensar Technologies' earnings potential following these results.

There's been no major changes to the consensus price target of ₹837, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Zensar Technologies, with the most bullish analyst valuing it at ₹990 and the most bearish at ₹700 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Zensar Technologies' growth to accelerate, with the forecast 11% annualised growth to the end of 2026 ranking favourably alongside historical growth of 5.8% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.2% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Zensar Technologies to grow faster than the wider industry.

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 major changes to revenue forecasts, with the business still expected to grow faster than the wider 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. 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 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.

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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.