Shares of Zensar Technologies opened 2.7% higher on February 22 after Nippon Life India Trustee acquired an additional 1.75% stake in the company.

Mutual funds bought additional shares from the open market, increasing their stake from 3.4% to 5.2%.

Zensar stock has lost 13% of its valuation in the last year. However, the stock has outperformed the market, gaining 32% over the past month, compared with a 1.6% decline in the Sensex and a 17% gain over the past six sessions.

Overall, a recovery in the IT sector and good quarterly results are boosting the stock.

Despite weaker revenue growth in the quarter, Zensar’s margins improved, with net profit up 35% quarter-on-quarter to Rs 77 crore in Q3FY23. EBITDA rose 52% quarter-on-quarter to Rs 85 crore, with EBITDA margin widening to 7.1% compared to 4.6% in Q2FY23.

The company appointed Manish Tandon as MD and CEO, effective January 23, 2023.

Signs of recovery in the IT sector and a healthy third quarter are attracting investors back to the industry.

Zensar has 10 buys, 4 holds and 0 sell orders, according to Bloomberg data.

The stock was down 0.53% at Rs 291.90 per share at 12:47 pm.