Zensar Technologies has shown consistent improvement under the leadership of Manish Tandon since 2023, despite a less-than-ideal Q2 FY25.

The quarterly results were boosted by better realizations, although unseasonal furloughs in the hi-tech sector affected overall revenue. Wage hikes and furloughs also impacted gross margins, but the operating margin remained resilient, and stability is expected in the future.

The company is optimistic about medium-term growth, driven by the China Plus strategy and protectionist measures in the tyre industry. Although valuations are not considered cheap, the outlook is positive, with strong order flows and a commitment to investing in domain-led solutions. Zensar is confident in its ability to outperform competitors in the next two years.

Currently, the stock is in a consolidation phase, indicating a gradual accumulation strategy for long-term investors. The current market price is ₹770.25, with a market capitalization of ₹17,473 crore, and the stock is rated as overweight.