IT Stock Announces Rs 7/Share Payout, Highest Dividend In 5 Years; Should You Purchase The Stock?
Zensar Technologies has released its financial statements for the fiscal year 2023–2024’s fourth quarter, which concluded on March 31, 2024. Furthermore, the business declared a dividend of Rs 7 per share, the largest since 2019. The statement caused Zensar Technologies’ shares to close 7.96% higher on Friday at Rs 621 per share.
Dividend for Zensar Technologies
“Recommendation of final dividend at INR 7 each (350%) per equity share of INR 2 each, for FY 2023–24, subject to approval by Members at the ensuing Annual General Meeting (“AGM”)” was discussed and approved by the company’s Board of Directors. The record date will be disclosed when it is appropriate. According to Zensar Technologies’ regulatory filing, “The dividend, if approved, shall be paid/dispatched to the shareholders within 30 days of its approval by the shareholders, at the AGM.”
Results for Zensar Technologies’ Q4
The company’s consolidated revenues rose 1.4% to Rs 1229 crore in Q4FY23 from Rs 1212 crore during the same time the previous year. Net profit increased by 45.38% from Rs 119.2 crore in Q4FY23 to Rs 173.3 crore in Q4FY23. Sales grew by 1.09% on an annual basis, from Rs 4848.2 crore in FY23 to Rs 4901 crore in FY24. In the most recent fiscal year, net profit increased by 103% to Rs 665 crore from Rs 327.6 crore in FY23. With a 200 bps quarterly YoY growth and a 70 bps sequential QoQ decline, EBITDA in Q4FY24 was 16.5%. In financial terms, sales increased by 2.5% from $144.5 million in the December quarter to $148.1 million in the March quarter.
“Sequential growth across all our verticals is a testimony of our robust strategy and our bias towards execution excellence,” said Manish Tandon, CEO and Managing Director of Zensar. We are a favored partner of choice because of our proficiency in managing digital goods, experiences, and engagement for our customers. We achieved our highest customer experience score ever in FY24, demonstrating our continued progress toward client centricity. With the aid of our varied service offerings, we increased our market penetration. We still consider customer and staff happiness to be the two main success factors. Our achievements provide us with the assurance to maintain strategic investments in our service lines and improve our proficiency in cutting-edge technologies like Gen AI in order to promote innovation and achieve expansion.”
“We have achieved strong financial results for FY’24 owing to our focused efforts towards operational excellence & margin improvement tracks which helped us improve our EBITDA by 640 bps to 17.8% and PAT by 690 bps to 13.6% on YoY basis,” stated Sachin Zute, CFO of Zensar, in relation to the company’s performance in FY24. By the conclusion of FY’24, we had increased our DSO to 73 days and had $261.7 million in cash on hand. We still have a lot of momentum with our order book, which increased by 22% year over year to $698 million. Our revenue for Q4FY24 is $148.1M, up 2.4% sequentially and 2.0% constant currency. The fourth quarter’s EBITDA margin of 16.5% exceeded our projected range.
The target share price for Zensar Technologies
Choice Broking’s Mandar Bhojane, an equity research analyst, stated: “ZENSARTECH is now trading at Rs 620.75. On the weekly chart, the stock has created a rounding bottom pattern with a notable rise in trading volume, suggesting a possible breakout. The price could be able to hit short-term objectives of Rs 745 if it can close above the Rs 640 mark. However, Rs. 580 and Rs. 570 are the levels of quick support. These levels may be seen as chances to purchase on declines. With a current value of 61.4 and an upward trend, the Relative Strength Index (RSI) suggests growing purchasing enthusiasm. In addition, a recent bullish crossing has taken the Stochastic Relative Strength Index (Stoch RSI) out of the oversold area.”
When all of these technical signs are taken into account, ZENSARTECH may soon be able to hit its goal price of Rs 745. A stop-loss (SL) of Rs 780 is a sensible level of risk management. This safety measure will shield your investment in the event of an unanticipated market turndown. In conclusion, ZENSARTECH seems to provide an enticing purchasing opportunity for those targeting a price goal of Rs 745, given the technical analysis and the state of the market, as long as the necessary risk management procedures are implemented, Mandar Bhojane said.
