We expect Zensar’s valuation discount to mid-cap players to gradually narrow
PRO Only Highlights
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
We have been betting on the turnaround of Zensar (CMP: Rs 437 Market Cap: Rs 9,873 crore) — the mid-sized IT company from the RPG stable — for a while. Our last recommendation, at the price of Rs 293, has worked well with huge outperformance over both Nifty and the IT index. Despite the strong run, the stock has a long road to catch up as the turnaround fully plays out. Signs of a turnaround … After contracting in all the…
