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Zensar Technologies Ltd

NSE: ZENSARTECH BSE: 504067

630.50

(0.14)%

Mon, 09 Feb 2026, 06:17 am

Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (4.2x coverage).
  • Dividends after 3 years are expected to be well covered by earnings (5x coverage).
  • Dividends per share have been stable in the past 10 years.
  • Zensar Technologies's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Zensar Technologies's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Zensar Technologies's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Performance (ROE) is expected to be above the current IN Software industry average.
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Cons

  • Cash flow for Zensar Technologies is expected to decrease over the next 2 years.
  • Zensar Technologies's earnings are expected to grow by 7.5% yearly, however this is not considered high growth (20% yearly).
  • Zensar Technologies's earnings growth is positive but not above the India market average.
  • Zensar Technologies's earnings are expected to decrease over the next year.
  • Zensar Technologies's earnings are expected to increase but not above the low risk growth rate in 3 years time
  • Zensar Technologies's net income is expected to increase but not above the 50% threshold in 2 years time.
  • Zensar Technologies is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • A decline in Zensar Technologies's performance (ROE) is expected over the next 3 years.
  • Zensar Technologies's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Zensar Technologies's revenue is expected to grow by 2.7% yearly, however this is not considered high growth (20% yearly).
  • Zensar Technologies's revenue growth is positive but not above the India market average.

health

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Pros

  • Zensar Technologies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Zensar Technologies is profitable, therefore cash runway is not a concern.
  • Zensar Technologies is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (215.8%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 7.1x debt.
  • Zensar Technologies's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (14.9% vs 13.7% today).
  • Interest payments on debt are well covered by earnings (EBIT is 5.7x coverage).
  • Zensar Technologies's level of debt (13.7%) compared to net worth is satisfactory (less than 40%).
  • Low level of unsold assets.
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Cons

    management

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    Pros

    • The tenure for the Zensar Technologies board of directors is about average.
    • Sandeep's remuneration is lower than average for companies of similar size in India.
    • Sandeep's compensation has been consistent with company performance over the past year, both up more than 20%.
    • The tenure for the Zensar Technologies management team is about average.
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    Cons

      misc

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      Pros

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        Cons

        • Zensar Technologies has significant price volatility in the past 3 months.

        past

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        Pros

        • Zensar Technologies used its assets more efficiently than the IN Software industry average last year based on Return on Assets.
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        Cons

        • Zensar Technologies's 1-year earnings growth is negative, it can't be compared to the 5-year average.
        • Zensar Technologies's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
        • Zensar Technologies's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
        • Zensar Technologies has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
        • Zensar Technologies's 1-year earnings growth is negative, it can't be compared to the IN Software industry average.

        value

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        Pros

        • NSEI:ZENSARTECH is up 57.2% outperforming the Software industry which returned 11.5% over the past month.
        • NSEI:ZENSARTECH is up 57.2% outperforming the market in India which returned 8% over the past month.
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        Cons

        • Zensar Technologies's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
        • Zensar Technologies's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
        • Zensar Technologies is overvalued based on assets compared to the IN Software industry average.
        • Zensar Technologies is poor value based on expected growth next year.
        • Zensar Technologies is overvalued based on earnings compared to the IN Software industry average.
        • Zensar Technologies is overvalued based on earnings compared to the India market.
        • ZENSARTECH underperformed the Software industry which returned -27.7% over the past year.
        • ZENSARTECH underperformed the Market in India which returned -14.5% over the past year.

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