Fundamental

ZENSAR TECHNOLOGIES
Ticker: 504067 BUY: Rs.945
Target: Rs.1060

Zensar Technologies is a software and infrastructure services company which provides a range of information technology (IT) services and solutions. Geographically, the US dominates with around 73.3 per cent share of the total revenue, followed by 13.5 per cent from Europe and 9.6 per cent from Africa. For Q3FY18, its revenue saw a sequential increase of 4.09 per cent on a YoY basis. Its EBIT margin stood at 11.27 per cent, while PAT declined by 6.26 per cent YoY. Its acquisition of Keystone has strengthened its combined delivery capability in the retail industry. The e-commerce and IMS recovery will help expand the margins going forward. In the next three years, the company expects its digital business to contribute more than 50 per cent towards the revenue. Considering these factors, we recommend it as a BUY.



SIEMENS
Ticker: 500550 BUY: Rs.1317
Target: Rs.1450

The company is engaged in the manufacture of electric motors, generators, transformers and electricity distribution and control apparatus. It follows financial year from October to September. It derived FY17 revenue from energy (38%), process industries (19%), digital factory (17%), power & gas (12%), others (14%). It reported revenue of Rs 11075 crore, up by 14 per cent YoY in FY17, while its EBITDA and PAT margins stood at 9.7 per cent and 9.9 per cent , respectively. Digitisation, the upcoming segment that would be in focus in the Union budget, would be a key growth driver for the company. The capex in public sector would boost the growth in FY18. Technology upgradation and smart grids would drive its growth going forward. Thus, we recommend it as a BUY.