Motilal Oswal Maintains Buy Rating for Zensar with a Target Price of Rs 640

Motilal Oswal Reaffirms Buy Rating for Zensar Technologies

In a recent analyst meeting, Zensar Technologies (ZENT) discussed its strategic focus on artificial intelligence (AI), growth prospects, pricing adjustments, and mergers and acquisitions (M&A). The key takeaways from the meeting highlighted the company's efforts to position itself as an AI orchestrator, rather than a model or large language model (LLM) layer. This approach involves developing an AI-native delivery model and introducing new offerings, such as AI token cost optimization.

ZENT's outlook is also bolstered by improved deal momentum, driven by AI-led conversations across new buying centers. The company is confident in its ability to grow above industry levels, supported by its strategic initiatives. Motilal Oswal's research team values ZENT at 17 times its estimated earnings per share (EPS) for fiscal year 2028 (FY28E).

| Valuation Comparison | | --- | --- | | FY28E EPS Estimate | 17x | | Target Price | INR 640 | | Upside Potential | 31% |

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

With its strong growth prospects and strategic focus on AI, Motilal Oswal reiterates its BUY rating for ZENT, with a target price of INR 640. This valuation implies a potential upside of 31% for investors.