Shares of Zensar Technologies Ltd. gained the most in over 14 months after its fourth-quarter profit beat analysts’ estimates.
The company’s net profit rose 55.8% year-on-year to Rs 119.2 crore in the quarter ended March, according to an exchange filing. This compares with the Bloomberg estimate of Rs 84.93 crore.
Zensar Technologies Q4 FY23 (Consolidated, Quarter-on-Quarter)
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Revenue down 0.89% at Rs 1,212.60 crore (Bloomberg estimate: Rs 1,210.64 crore).
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Ebit up 26.64% at Rs 140.7 crore (Bloomberg estimate: Rs 99.03 crore).
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Ebit margin at 11.6% vs 9.08% (Bloomberg estimate: 8.18%).
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Net profit up 55.82% at Rs 119.2 crore (Bloomberg estimate: Rs 84.93 crore).
The company announced a final dividend of Rs 3.50 per share for fiscal 2023.
Shares of Zensar Technologies surged 8.28% to Rs 335.95 apiece, compared to a 0.23% fall in the NSE Nifty 50 as of 10:31 a.m. The stock rose 9.91% intraday, the most in over 14 months since Feb. 25, 2022.
The average traded volume so far in the day stood at 28.3 times its monthly average, while the relative strength index was at 82, indicating the stock may be overbought.
Of the 13 analysts tracking the company, nine maintain a ‘buy’ rating, and four suggest a ‘hold’, according to Bloomberg data. The average 12-month consensus price target implies a potential downside of 5%.