Zensar Technologies acquired Akibia Inc last month. The results of Akibia group will be reflected in the march quarter of Zensar.
On consolidated basis the company is expected do a Profit After Tax of around 130 crores on the topline of around 1150 crores, resulting into an EPS of around Rs 30.
The midcap IT story has started to catch up recently and there has been an overall PE rerating happening across the midcap IT basket. We expect that even on conservative basis Zensar should get a PE multiple of at least 8 times in 3 months from here. Considering that our price target for the stock is Rs 240/- in 3 to 4 months time frame.
Investors with that kind of time frame in mind can invest in the company at around Rs 170/- for an appreciation of close to 40%.