Shares Tumble 58% In 1-Year, HDFC Securities Sees 39% Rally In Mid Cap Stock, Buy

HDFC Securities has assigned buy rating to mid-cap IT Software sector stock, Zensar Technologies Ltd with a target price of Rs 290 apiece. If you buy Zensar Technologies Ltd share at current market price of Rs 208 apiece, you will potentially get 39% return. The stock has a market capitalisation of Rs 4727 crore. Check details pertaining to the stock below:

1. Zensar Technologies Ltd Stock Performance

The last trading price of the stock is Rs 208 apiece with an intraday dip of 0.59%. The 52-week high of the stock is Rs 519 apiece and 52-week low is Rs 202 apiece. The stock is currently trading just 2% away from 52-week low.

2. Zensar Technologies Ltd Return

The stock has declined 10% in last 3-months, 7% in last 3-months, and 58% in last 1-year. The stock has surged 15% in last 3-years and 20% in last 5-years.

3. HDFC Securities On IT Sector

According to HDFC Securities, "The IT index' historical outperformance of 8/8/5pp over benchmark 3/5/10Y CAGR was dragged lower by ~26% underperformance in the past one year. Over the past year, tier-1 IT underperformance was led by both a cut in earnings estimate (largely for WPRO, TECHM) and P/E derating (IT index de-rated from >30x in the beginning of the year to currently), while mid-tier IT correction was largely a function of P/E derating as earnings estimates have held up (or improved). The multiples will be capped at +1SD due to increasing uncertainty and fewer positive catalysts."

4. About Zensar Technologies

It is a leading technology solutions company with a strong engineering pedigree. Headquartered in Pune, India, it is part of the USD 4 billion RPG Enterprises Group, serving over 147 global clients. It is a public-listed company for over 50 years, disrupting the status quo through our deep engineering capabilities, innovation, and velocity, according to its official website.

Disclaimer

The stock has been picked from the brokerage report of HDFC Securities. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.