Zen Technologies

Market Cap: Mid Cap
Industry: IT - Software
ISIN: INE251B01027
NSEID: ZENTEC
BSEID: 533339

INR

1,466.90

16.8 (1.16%)

BSENSE

Apr 11, 12:53 PM

BSE+NSE Vol: 2.08 lacs

Click here to access the older version

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

HCL Technologies

Wipro

TCS

Infosys

Indiamart Inter.

Zen Technologies

Birlasoft Ltd

Cyient

Newgen Software

C.E. Info System

Eternal Ltd

Why is Zen Technologies Ltd ?

Stock is technically in a Mildly Bearish range

The stocks MACD and KST technical factors are also Bearish

With ROE of 13, it has a Very Expensive valuation with a 8.4 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 46.26%, its profits have risen by 87.7% ; the PEG ratio of the company is 0.8

Reducing Promoter Confidence

Promoters have decreased their stake in the company by -2.21% over the previous quarter and currently hold 49.05% of the company
Promoters decreasing their stake may signify reduced confidence in the future of the business

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in IT - Software )

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Zen Technologies for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zen Technologies

46.35%

0.79

58.46%

SENSEX

0.45%

0.03

14.48%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

35.31%

EBIT Growth (5y)

32.90%

EBIT to Interest (avg)

23.93

Debt to EBITDA (avg)

0.57

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

0.54

Tax Ratio

26.55%

Dividend Payout Ratio

6.57%

Pledged Shares

Institutional Holding

17.27%

ROCE (avg)

28.90%

ROE (avg)

11.48%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

8.39

EV to EBIT

44.24

EV to EBITDA

42.14

EV to Capital Employed

23.28

EV to Sales

15.25

PEG Ratio

0.83

Dividend Yield

0.07%

ROCE (Latest)

52.52%

ROE (Latest)

13.02%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

21What is working for the Company

NET SALES(9M)

Higher at Rs 648.67 cr

PAT(9M)

Higher at Rs 179.20 Cr

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 1,105.54 cr

-13What is not working for the Company

PBT LESS OI(Q)

At Rs 37.43 cr has Fallen at -43.9% (vs previous 4Q average

PAT(Q)

At Rs 39.72 cr has Fallen at -21.8% (vs previous 4Q average

NET SALES(Q)

At Rs 152.21 cr has Fallen at -17.4% (vs previous 4Q average

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.75 times

NON-OPERATING INCOME(Q)

is 37.06 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for Zen Technologies

Cash and Cash Equivalents - Half Yearly

Highest at Rs 1,105.54 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Zen Technologies

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 37.43 cr has Fallen at -43.9% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 66.76 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 39.72 cr has Fallen at -21.8% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 50.81 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Net Sales - Quarterly

At Rs 152.21 cr has Fallen at -17.4% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 184.34 Cr

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 37.43 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Non Operating Income - Quarterly

is 37.06 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Debtors Turnover Ratio- Half Yearly

Lowest at 1.75 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Non Operating Income - Quarterly

Highest at Rs 22.04 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income