Zensar Technologies Limited

NSEI:ZENSARTECH Stock Report

Market Cap: ₹164.6b

Zensar Technologies Valuation

Is ZENSARTECH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ZENSARTECH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ZENSARTECH (₹725.8) is trading above our estimate of fair value (₹331.21)

Significantly Below Fair Value: ZENSARTECH is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ZENSARTECH?

Key metric: As ZENSARTECH is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ZENSARTECH. This is calculated by dividing ZENSARTECH's market cap by their current earnings.
What is ZENSARTECH's PE Ratio?
PE Ratio25.4x
Earnings₹6.49b
Market Cap₹164.56b

Price to Earnings Ratio vs Peers

How does ZENSARTECH's PE Ratio compare to its peers?

The above table shows the PE ratio for ZENSARTECH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average47x
SONATSOFTW Sonata Software
55.1x31.3%₹152.2b
532175 Cyient
30.3x17.4%₹199.9b
500463 Black Box
56.2xn/a₹95.6b
HAPPSTMNDS Happiest Minds Technologies
46.4x24.8%₹107.7b
ZENSARTECH Zensar Technologies
25.4x10.9%₹164.6b

Price-To-Earnings vs Peers: ZENSARTECH is good value based on its Price-To-Earnings Ratio (25.4x) compared to the peer average (47x).

Price to Earnings Ratio vs Industry

How does ZENSARTECH's PE Ratio compare vs other companies in the IN IT Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
GTL GTL
1.1xn/aUS$22.06m
517429 Athena Global Technologies
0.6xn/aUS$15.78m
509040 Netlink Solutions (India)
3.2xn/aUS$5.10m
512341 CES
0.05xn/aUS$130.33k
No more companies available in this PE range
ZENSARTECH 25.4xIndustry Avg. 34.5xNo. of Companies18PE020406080100+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ZENSARTECH is good value based on its Price-To-Earnings Ratio (25.4x) compared to the Indian IT industry average (34.5x).

Price to Earnings Ratio vs Fair Ratio

What is ZENSARTECH's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ZENSARTECH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25.4x
Fair PE Ratio34x

Price-To-Earnings vs Fair Ratio: ZENSARTECH is good value based on its Price-To-Earnings Ratio (25.4x) compared to the estimated Fair Price-To-Earnings Ratio (34x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ZENSARTECH forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹725.80
₹797.00
+9.8%
8.3%₹900.00₹650.00n/a11
Nov ’25₹697.80
₹791.18
+13.4%
8.5%₹900.00₹650.00n/a11
Oct ’25₹678.75
₹828.09
+22.0%
7.5%₹925.00₹720.00n/a11
Sep ’25₹767.90
₹823.00
+7.2%
7.1%₹890.00₹720.00n/a10
Aug ’25₹776.85
₹814.30
+4.8%
7.1%₹890.00₹720.00n/a10
Jul ’25₹754.95
₹684.11
-9.4%
10.8%₹815.00₹570.00n/a9
Jun ’25₹610.10
₹663.56
+8.8%
7.2%₹710.00₹570.00n/a9
May ’25₹613.25
₹656.00
+7.0%
6.9%₹710.00₹570.00n/a9
Apr ’25₹610.10
₹625.11
+2.5%
6.0%₹680.00₹570.00n/a9
Mar ’25₹544.35
₹623.14
+14.5%
5.4%₹680.00₹570.00n/a7
Feb ’25₹566.60
₹623.14
+10.0%
5.4%₹680.00₹570.00n/a7
Jan ’25₹607.20
₹569.57
-6.2%
7.8%₹630.00₹520.00n/a7
Dec ’24₹535.05
₹569.57
+6.5%
7.8%₹630.00₹520.00n/a7
Nov ’24₹493.85
₹569.57
+15.3%
7.8%₹630.00₹520.00₹697.807
Oct ’24₹517.40
₹488.14
-5.7%
18.8%₹570.00₹282.00₹678.757
Sep ’24₹533.90
₹488.14
-8.6%
18.8%₹570.00₹282.00₹767.907
Aug ’24₹491.00
₹464.14
-5.5%
18.0%₹540.00₹282.00₹776.857
Jul ’24₹386.95
₹390.00
+0.8%
12.1%₹440.00₹282.00₹754.957
Jun ’24₹388.75
₹379.29
-2.4%
13.0%₹440.00₹282.00₹610.107
May ’24₹278.25
₹275.00
-1.2%
12.9%₹320.00₹225.00₹613.258
Apr ’24₹274.35
₹257.38
-6.2%
11.1%₹310.00₹225.00₹610.108
Mar ’24₹287.70
₹256.00
-11.0%
8.8%₹285.00₹225.00₹544.359
Feb ’24₹233.95
₹256.00
+9.4%
8.8%₹285.00₹225.00₹566.609
Jan ’24₹213.00
₹263.80
+23.8%
19.8%₹406.00₹215.00₹607.2010
Dec ’23₹228.40
₹259.30
+13.5%
20.3%₹406.00₹215.00₹535.0510
Nov ’23₹221.70
₹259.30
+17.0%
20.3%₹406.00₹215.00₹493.8510

Analyst Forecast: Target price is less than 20% higher than the current share price.

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