Buy Zensar at Rs 703.8 and add on dips to Rs 600 - Rs 635 for Target of Rs. 882 in 1-2 quarters :HDFC sec

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Zensar Technologies :FOCUS ON HIGH GROWTH IN IMS: IFCI research

IMS focused company strengthened by Akibia acquisition
Akibia is a US based IMS company, which was acquired by Zensar Tech in FY11. The IMS segment has outperformed all the other service lines and this is expected to continue, led by strong demand. It contributes 38% to the revenues for Zensar. The management has also taken active efforts to improve the PBT margin of Akibia to 14%, which will drive profitability in FY14.

Buy ZENSAR TECHNOLOGIES - Target Rs 220 :: Kotak Securities PDF link

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http://www.kotaksecurities.com/pdf/dmb/MorningInsight29032012.pdf


ZENSAR TECHNOLOGIES LTD
PRICE: RS.180 RECOMMENDATION: BUY
TARGET  PRICE:  RS.220 FY13E P/E: 4.4X
q We interacted with the management of Zensar recently. The meeting reinforces our optimism on the long term prospects of the company.
q The management has not seen any cause of concern within its top clients, as yet.
q Cisco, which has been facing scale up issues over the past three quarters,
is expected to see higher revenue growth, going ahead.
q According to the management, Zensar is expected to get additional revenues as one of the large Indian vendors has been rationalized by Cisco.
q Post the acquisition of Akibia, Zensar is in a position to cross sell services
to the mutually exclusive set of clients and this is expected to help
growth rates. Order booking for combined services is at about $12mn
currently, we understand.

Buy ZENSAR TECHNOLOGIES; TARGET PRICE: RS.212- Kotak Securities

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Our recent interaction with the management indicates no perceptible
change in business momentum in the current quarter. The company has
received good orders in the past few months and client spending has been
as per schedule, till date. The talks of slowdown in developed economies
have not yet impacted the company. Growth in Cisco revenues in 1Q is
expected to remain subdued with growth expected only in 3QFY12.
Integration with Akibia is in progress with cross-selling discussions
currently on. We expect margins to be impacted in 1HFY12 due to
slowdown in Cisco and salary increments (WEF July). We moderate our
FY12E EPS to Rs.30.9 (Rs.33.1). The stock is available at 5.8x FY12E earnings.
We maintain BUY with a DCF-based price target of Rs.212 (Rs.218). A delayed
recovery in major user economies and a sharper-than-expected appreciation
in rupee v/s major currencies are pronounced risks for a smaller player like
Zensar.

ZENSAR TECHNOLOGIES: Result review: price target of Rs.211: Kotak securities

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ZENSAR TECHNOLOGIES LTD
PRICE: RS.170
RECOMMENDATION: BUY
TARGET PRICE: RS.211
FY12E PE: 4.9X
q Zensar's operating results were marginally lower than our estimates for
this seasonally weak quarter.
q Volumes remained flat due to lower billing hours but the company was
able to maintain margins despite the rupee appreciation. Billing rates
remained stable and the management expects rates to rise some time
early next fiscal, in case demand persists.
q Higher other income compensated for the one time tax provision and led
to higher-than-estimated PAT.