Re-rating talks pushes up Zensar

THE HINDU BUSINESS LINE, KOLKALTA, 19.06.2007

The Rs 10-face valued Zensar Technologies stock on Monday climbed 3.7 per cent to close at Rs 356.70 on the NSE. The company, some quarters say is in for a re-rating, following what are being seen as early signs of improvement in terms of revenues and margins. Its BPO and Its (Innovative Technology Solutions) are said to be out of investment mode in the current year and are expected to contribute positively to margins.

The growth drivers will include integration of the US-based ThoughtDigital and the recent joint venture with the Japan-based EZA, market men suggest, adding that the company's investment in Solution BluePrint is paying off. It may be mentioned that in March 2007, the RPG group agreed to buy out Fujitsu's stake in Zensar. Post-sale, RPG will have a majority 58 per cent, effective from Q2 of fiscal 2008. Only 5 per cent of its business comes directly from Fujitsu and another 5 per cent from Fujitsu's clients. No major reduction in business is expected, brokerages feel. On Monday, over 58,000 shares made up the volumes on NSE. The day's high and low were Rs 361.00 and Rs 345 respectively.