This small-cap IT firm's stock jumped 11% to hit fresh 52-week high; stock up 58% in 2023 so far

Shares of Zensar Technologies Ltd surged up to 11 per cent on Friday to hit their fresh one-year high of Rs 344 against a previous close of Rs 309.90. The stock eventually settled 9.60 per cent higher at Rs 339.65. At today's closing price, the small-cap IT counter has gained 58.38 per cent on a year-to-date (YTD) basis, outperforming merely a 1.41 per cent rise in the benchmark BSE Sensex. The sharp movement in the share price came just a day after Zensar declared its fourth quarter, ending March 31, 2023, (Q4 FY23) results and proposed a dividend of Rs 3.50 per share.

The company reported a consolidated net profit of Rs 119.20 crore in the March 2023 quarter, up 55.82 per cent (sequentially) from Rs 76.50 crore in Q3 FY23. However, profit slipped 8.24 per cent against Rs 129.90 crore in the year-ago period.

Zensar Tech's Board also recommended a final dividend of Rs 3.50 (175 per cent) per equity share of Rs 2 each for FY23, subject to approval by members at the company's ensuing Annual General Meeting (AGM). It also endorsed the reappointment of Anant Vardhan Goenka, son of HV Goenka, as Non-Executive Director and Vice-Chairman.

On the technical front, analysts were mixed on the counter. Support on the counter could be seen at Rs 279, an analyst said. On the other hand, two analysts suggested that if it holds the Rs 300 level, the momentum may be on the higher end.

Osho Krishan, Senior Analyst - Technical & Derivative Research at Angel One, said, "Zensar Tech has seen a strong jump in the price-volume action which led it to a fresh 52-week high. From a technical point of view, the recent rally construes to be a positive development for the counter, and till it sustains above the breakout zone of Rs 310-300 zone, the momentum is likely to be on the higher end. On the flip side, Rs 340-360 is the immediate supply zone and a decisive breach above which could only initiate the next leg of rally."

Ganesh Dongre, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "On the daily charts, the stock has given a breakout at the Rs 290-300 level. On the weekly charts, it has seen a bullish rounding bottom pattern. So, traders can buy-on-dip with a stop loss placed at Rs 290-295 for the target price of Rs 380-400 this month."

AR Ramachandran from Tips2trades said, "The stock is overbought on the daily charts with strong resistance at Rs 341. Investors should book profits at current levels and wait for a dip near support of Rs 279 to buy for better returns in the near term.

Zensar is a technology solutions company with a strong engineering pedigree. The Pune-headquartered firm is part of the $4 billion RPG Enterprises Group. The RPG group is a global conglomerate with a diversified portfolio in the areas of infrastructure, tyres, information technology, health, energy and agribusiness.

Meanwhile, Indian equity benchmarks traded higher in late deals today, led by gains in banks, financials, automobile and consumer stocks.

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