Zensar Technologies Achieves Success at 2023 Brandon Hall Group HCM Excellence Awards

Zensar Technologies, a leading experience engineering and technology solutions company, proudly announces its recent triumph at the 2023 Brandon Hall Group HCM Excellence Awards. The company has secured a Gold Award for its Solution Architect Program in Performance Management and a Silver Award for its Product Owner Program, highlighting its impactful role in driving strategic business transformation. These accolades underscore Zensar’s unwavering commitment to fostering a robust learning culture within the organization.

The Brandon Hall Group HCM Excellence Awards are renowned for recognizing organizations that demonstrate excellence in Human Capital Management (HCM) practices. Zensar’s repeated success in these awards reflects its dedication to continuous learning and skill development.

“Winning Gold and Silver awards at the 2023 Brandon Hall Group HCM Excellence Awards is a remarkable accomplishment for Zensar,” said Manish Tandon, CEO and Managing Director of Zensar Technologies. It confirms our commitment to fostering a strong learning culture throughout the business and considerably improves our capacity to give even better solutions to our clients. These accolades recognize our staff’ hard work and devotion, as well as our joint effort with our premium training partner, NIIT Stackroute.”

Dr. Vishnupriya Raghavan, VP, Client Advisory and Transformation at StackRoute, an NIIT Venture, added, “We are thrilled about the second consecutive win of the prestigious Brandon Hall Award with Zensar Technologies. The awards honor our dedication to providing high-quality, comprehensive treatments that have a significant impact on learning outcomes. Throughout the program, Zensar proved to be an invaluable collaborator, providing unwavering support at every stage, enabling us to bring our best as a true learning partner.”

Vivek Ranjan, CHRO of Zensar, commented on the significant win, saying, “Our flagship programs are recognized for their excellence, and we are honored to receive these awards for the consecutive year in a row. Investing in the continual development of our workers’ talents yields enormous returns, improving both their capabilities and our capacity to give even more value to our clients. This dedication to expansion and expertise is at the heart of our client relationships, ensuring that we constantly deliver the greatest level of service and innovation.”

Zensar’s proactive approach to skill enhancement not only leads to reduced billing rates for clients but also fosters efficiency, optimizing project timelines and lowering costs. This emphasis on skilling and upskilling immediately improves job quality and exceeds customer expectations. Furthermore, the reduction of on-the-job staff is a direct outcome of Zensar’s efforts, saving time for the customers’ project managers and assuring the smooth execution of the project.

Zensar’s unwavering dedication to skilling and upskilling benefits both its staff and its clients. The organization delivers outstanding value through decreased billing rates, improved project quality, and better efficiency, all of which lead to a mutually beneficial collaboration by building a learning culture and supporting continuous development.

Zensar Technologies Soars to New Heights: A Closer Look at Q1 Performance

In a spectacular turn of events, Zensar Technologies has witnessed a remarkable surge in its stock, reaching a 52-week high. The Noida-based IT firm’s shares climbed an impressive 10.5% in the latest session, hitting an intraday peak of ₹375.35 on the BSE. This bullish trend follows the release of the company’s robust Q1 results, prompting brokerage firms to reevaluate their target prices.

Key Highlights:

1. Stock Performance:

• Zensar Technologies opened at ₹341.05, showing an upward trajectory from the previous closing price of ₹339.65.
• Over the last five sessions, the stock has surged by an impressive 19%.
• The company’s market capitalization now stands at ₹8,465.28 crore, with a notable increase in trading volume compared to the two-week average.

2. Financial Performance:

• The March quarter showcased a substantial 55.8% QoQ increase in net profit, totaling ₹119.2 crore.
• Revenue from operations experienced a 1.1% QoQ growth, with a 0.4% surge in constant currency terms.
• EBITDA margin increased by 320 basis points to 14.5%, reflecting strong and sustainable margin improvement.

3. Operational Metrics:

• The company’s attrition rate in the reviewed quarter improved by 810 basis points, standing at 19.8%.
• Gross margin saw a sequential increase of 460 basis points, reaching 31.9% of revenues.
• Zensar Technologies’ net sales for the quarter amounted to ₹1,213 crore.

4. Dividends and Board Recommendations:

• The board has proposed a final dividend of ₹3.50 per equity share.

Brokerage Firms’ Perspectives:

1. HDFC Securities:

• Maintains a ‘BUY’ rating with a revised target price of ₹445.
• Attributes margin improvement to factors like lower sub-contracting, higher utilization, and better productivity.
• Expects margins to remain in the mid-teens range, supported by continued gains in productivity.

2. ICICI Direct:

• Maintains a ‘HOLD’ rating with a target price of ₹370.
• Forecasts a revenue CAGR of 8.4% over FY23-25E, highlighting the addition of new service lines and cost moderation as levers for margin expansion.

3. Other Brokerages:

• Motilal Oswal revises the target price to ₹390.
• Nuvama lowers the target price to ₹340.

Zensar Technologies’ stellar performance in Q1 has not only propelled its stock to new heights but has also instilled confidence among brokerage firms. While challenges in certain verticals are acknowledged, the overall outlook remains positive, with a focus on sustained margin improvement and revenue growth opportunities. Investors are advised to consider these factors and consult with certified experts before making investment decisions.

Navigating Zensar Technologies: A Closer Look at Ownership Dynamics

In the dynamic world of stock markets, understanding the ownership structure of a company can offer valuable insights into its performance and future prospects. Zensar Technologies Limited (NSE:ZENSARTECH) has recently seen institutional investors experience a 5.9% loss in a week. However, the bigger picture reveals a promising 138% one-year return. Let’s delve into the ownership breakdown to decipher the intricacies of Zensar’s investor landscape.

Ownership Breakdown

As of October 21, 2023, institutions hold a commanding 46% stake in Zensar Technologies, indicating substantial influence over the company’s share price. The top four investors, collectively owning 50% of the company, play a pivotal role in decision-making processes.

Institutional Ownership Insights

Institutions often align their performance with market indices, showcasing a keen interest in companies like Zensar Technologies. Notably, hedge funds show a relatively modest presence, with Swallow Associates LLP emerging as the largest shareholder with a 27% stake, followed by Summit Securities Limited (11%) and Instant Holdings Limited (8.5%).

Earnings and Revenue Growth

Analyzing Zensar’s past earnings trajectory provides a holistic view of its performance. Institutional investors, with their significant stake, indicate a positive sentiment toward the stock. However, it’s essential to consider various factors influencing earnings and revenue growth.

Insider Ownership

Insiders, including board members and top-level managers, own approximately ₹1.5 billion worth of Zensar Technologies shares. While insider ownership generally signals alignment of interests, investors should stay vigilant for any signs of insider selling.

General Public and Private Company Ownership

The general public holds a 14% stake, a considerable but not dominant share that may not wield significant influence over company policy. Private companies, owning 38% of shares, add complexity to the ownership landscape, warranting further investigation into potential related-party dynamics.

Next Steps

Understanding the diverse groups of shareholders in Zensar Technologies provides a nuanced perspective on the company’s performance and potential trajectory. While institutional and insider ownership suggests confidence, investors should consider multiple factors before making decisions. Further research is essential, and it’s worth noting a cautionary signal that has been identified for Zensar Technologies.

In the ever-evolving world of investments, staying informed about ownership dynamics is crucial for making well-informed decisions.