In This Article:
Zensar Technologies Limited (NSE:ZENSARTECH) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of ZENSARTECH, it is a financially-robust company with a a strong track record of dividend payments and an optimistic growth outlook. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my high-level commentary, take a look at the report on Zensar Technologies here.
Flawless balance sheet with high growth potential and pays a dividend
ZENSARTECH’s cash-generating ability is outstanding, with analysts expecting its operating cash flows to flourish by 86% in the upcoming year. This is expected to flow down into an impressive return on equity of 21% over the next couple of years. ZENSARTECH’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. ZENSARTECH’s has produced operating cash levels of 7.37x total debt over the past year, which implies that ZENSARTECH’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
ZENSARTECH is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
Next Steps:
For Zensar Technologies, there are three important aspects you should further research:
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Historical Performance: What has ZENSARTECH’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
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Valuation: What is ZENSARTECH worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ZENSARTECH is currently mispriced by the market.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ZENSARTECH? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.