A closer view on Zensar Technologies
proves it as a dark horse of the IT sector. The Company over which we gave
“Buy” recommendation on 7th February 2011 has given a substantial
return in last 14 months. If looked closely at the stock price of the company
on 7th February 2011 it was Rs. 156.95 (Closing Price) which
translates to return of whopping 43.77% compared to yesterday close of Rs.
225.65. In the same time our benchmark index nifty gave a return of -1.18%. Some
stocks perform silently, moves silently and give returns silently.
Zensar Technologies is a software
wing of RPG group and offers end-to-end services from IT development to
Business Process Outsourcing, from consulting to implementation. The company is
recognized by the Department of Scientific and Industrial Research (DSIR) for
its robust in-house R&D practices and an acknowledged leader in innovation.
It carries its operations across twenty countries in the world including US,
UK, Germany, Sweden, Finland, Middle East, South Africa, Singapore, Australia,
Japan and Poland with 6000+ associates and 400+ customers.
Zensar Technologies is world's
first enterprise-wide SEI CMM Level 5 Company and now a CMMI Level 5 Company
with industry expertise across Retail and Distribution, Banking, Financial
Services and Insurance, Healthcare and Life Sciences, Manufacturing, Energy and
utilities. Its customer base includes Cisco, National Grid, Fujitsu, Marks and
Spencer, Danaher Corporation, Electronic Arts and Logitech among others.
In December, Company signed an
agreement with technology giant Google to provide Google Apps solution to large
retail and manufacturing customers.
The promoters of the company have
been continuously increasing their stake. In last 9 months the stake of the
promoters increased from 47.82% in June-11 to 48.05% in Mar-11. On the dividend
front company declared a dividend of Rs 6.5 for FY-12 which translates to yield
of 3.6% which is really good for a mid-cap IT company. On the financial front
the top line and bottom line showed a growth of 16% and 21% respectively which
is worth appreciating citing global crisis we are into since 2009.
Last year when I had a talk with
the management they were quite sure of going for 30% CAGR for next three years
in both top line and bottom line. Today in 9M FY12 they put a total of Rs 545
Cr in the top line and 74 Cr in the bottom line. If last quarter to be
projected we expect them to post top line of 800 Cr in FY 12 and the bottom
line to be between 90-100 Cr. This makes an increase of 30% in top line and
around 22% in the bottom line near to the company’s target.
When whole world is going through
a stressful situation where to invest and how much to expect? Where the PM’s
own economic advisor gives a statement of no reforms till 2014 there volatility
in the market is a natural phenomenon. To counter the volatility of the macro
world you require certain stocks that can give a good return with limited downside.
One such stock is Zensar Technologies.
If you are interested in knowing many more companies like Zensar or want to subscribe to our different "Investment" packages contact me at niraj@hbjcapital or go to this link Multibagger Penny Stocks
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