My reply to one of the member who asked for my opinion. However I have been wrong in past and may be so in this case also. So please do your own research. Pls!!
Recent drop definitely makes valuation attractive. Key issue is margin pressure due to increase in employee cost.
Employee attrition and their cost increase due to retention bonus, salary hike etc. is a key issue for all Indian IT companies currently. Zensar seems to be struggling with this. Assuming that their revenue reporting is clean, there is a consistent growth in revenue. Mr. Bhutoria policy of focusing on 5 growth verticals seems to be working. Hence once this margin pressure is over, company must bounce back handsomely. However if you are yet to invest, then you can wait for 1/2 quarters more. Just my opinion.
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