Motilal Oswal - Zensar Technologies (ZENT) MOSL: ZENSAR TECHNOLOGIES (Buy)-Ready to grow the core-improve profitability

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Motilal Oswal

MOSL: ZENSAR TECHNOLOGIES (Buy)-Ready to grow the core-improve profitability

Zensar Technologies: Ready to grow the core; improve profitability

(zent IN, Mkt Cap USD0.8b, CMP INR1248, TP INR1450, 15% Upside, Buy)

We attended the RPG Group analyst meet. In this note, we present the key highlights of our meeting with Zensar Technologies (ZENT):

As Digital scales up, profitability should follow suit

Approach to Digital reaping dividends…: Digital has been growing at more than 30% and now contributes 41% of ZENT’s total revenue. More than 80% of the business has been home-grown; the company will continue developing new solutions to further strengthen this segment.
…Marked by ‘Return on Digital’ proposition: ZENT’s Return on Digital (ROD) framework is now part of every deal, with everything being native digital, mobile and cloud. The suite has various platforms that are made for distinct functions, for instance – CMOs can use the relevant solution to measure campaign effectiveness, CIOs can run the entire IT on this platform, and the sales function can track real-time movement of pipeline, closures and revenue.
Profitability in Digital should follow with scale: Although ZENT’s Digital margins are equivalent to company average, there is scope for further improvement as the business scales up. Deals, though, have been increasing – at USD8-12m now v/s USD1-3m two years ago.

15/06/2018 8 EN

Underlying

Zensar Technologies

Zensar Technologies offers a comprehensive range of I.T. services including software development, packaged software implementation and system maintenance services to its worlwide customers operating in different industries. Co. also offers remote services in the voice and non-voice categories.

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INE520A01019 India

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Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

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MOSL: ZENSAR TECHNOLOGIES (Buy)-Ready to grow the core-improve profitability

Zensar Technologies Ltd: 1 director

MOSL: ZENSAR TECHNOLOGIES (Buy)- Revenue growth takes a pause

MOSL: ZENSAR TECHNOLOGIES (Buy)-Traction in CIS-deal pipeline remains healthy

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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