{"id":220804,"date":"2026-08-27T12:01:08","date_gmt":"2026-08-27T06:31:08","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=220804"},"modified":"2026-08-27T12:01:10","modified_gmt":"2026-08-27T06:31:10","slug":"it-software-stocks-below-fair-value","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/it-software-stocks-below-fair-value\/","title":{"rendered":"3 Undervalued IT Software Stocks Trading Below Fair Value"},"content":{"rendered":"<div class=\"meta-block\"><\/div>\n<p style=\"border-left: 4px solid #1F4E79; background: #EBF3FB; padding: 10px 16px; font-style: italic;\"><em>IT software sector PE near 18.8. Zensar Technologies trades at 13.8x. Onward Technologies at 14.8x. Kellton Tech at 7.9x.<\/em><\/p>\n<div style=\"background: #F0F9FF; border-left: 4px solid #2E7D32; border-radius: 6px; padding: 14px 18px; margin: 18px 0;\">\n<p style=\"margin: 0; color: #1f4e79; font-size: 14px;\"><strong>Quick Answer<\/strong><\/p>\n<p style=\"margin: 8px 0 0;\">Three IT software stocks, Zensar Technologies, Onward Technologies and Kellton Tech Solutions, are trading below the sector&#8217;s average price to earnings ratio of close to 18.8 times while all three post positive return on equity. Kellton Tech trades at the steepest discount of the group, while Zensar Technologies and Onward Technologies both maintain near debt free balance sheets. This gap between valuation and profitability is why these IT software stocks stand out on a simple sector screen, though a formal buy rating needs deeper company specific research.<\/p>\n<\/div>\n<p>India&#8217;s mid and small cap IT software industry has seen mixed demand as clients slow discretionary technology spending even as digital transformation deals continue in select verticals. Not every stock in the space trades at the same multiple. A screen of listed IT software stocks against the sector&#8217;s average price to earnings ratio surfaces three names still priced below that benchmark.<\/p>\n<p>Zensar Technologies, Onward Technologies and Kellton Tech Solutions all currently trade below the broader IT software industry PE, despite posting positive return on equity. This piece breaks down why each stock screens as undervalued, what the underlying financials show, and the risks that come with owning mid and small cap IT services companies.<\/p>\n<p style=\"margin-top: 24px;\"><strong><a href=\"https:\/\/univest.in\/user\/log-in?utm_source=blogs&amp;utm_medium=undervalued_itsoftware_articles\">Click Here &#8211; Get Free Investment Predictions<\/a><\/strong><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/univest.in\/blogs-2\/it-software-stocks-below-fair-value\/#Why_These_IT_Software_Stocks_Screen_as_Undervalued\" title=\"Why These IT Software Stocks Screen as Undervalued\">Why These IT Software Stocks Screen as Undervalued<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/univest.in\/blogs-2\/it-software-stocks-below-fair-value\/#Zensar_Technologies_Largest_Scale_Solid_ROE\" title=\"Zensar Technologies: Largest Scale, Solid ROE\">Zensar Technologies: Largest Scale, Solid ROE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/univest.in\/blogs-2\/it-software-stocks-below-fair-value\/#Onward_Technologies_Highest_ROE_Smallest_Scale\" title=\"Onward Technologies: Highest ROE, Smallest Scale\">Onward Technologies: Highest ROE, Smallest Scale<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/univest.in\/blogs-2\/it-software-stocks-below-fair-value\/#Kellton_Tech_Solutions_Steepest_Discount\" title=\"Kellton Tech Solutions: Steepest Discount\">Kellton Tech Solutions: Steepest Discount<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/univest.in\/blogs-2\/it-software-stocks-below-fair-value\/#Valuation_Snapshot_PE_PB_and_Dividend_Yield\" title=\"Valuation Snapshot: PE, PB and Dividend Yield\">Valuation Snapshot: PE, PB and Dividend Yield<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/univest.in\/blogs-2\/it-software-stocks-below-fair-value\/#Risks_to_Consider_Before_Buying_These_IT_Software_Stocks\" title=\"Risks to Consider Before Buying These IT Software Stocks\">Risks to Consider Before Buying These IT Software Stocks<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/univest.in\/blogs-2\/it-software-stocks-below-fair-value\/#Client_Concentration_Risk\" title=\"Client Concentration Risk\">Client Concentration Risk<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/univest.in\/blogs-2\/it-software-stocks-below-fair-value\/#Currency_and_Global_Demand_Sensitivity\" title=\"Currency and Global Demand Sensitivity\">Currency and Global Demand Sensitivity<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/univest.in\/blogs-2\/it-software-stocks-below-fair-value\/#Margin_Pressure_from_Wage_Inflation\" title=\"Margin Pressure from Wage Inflation\">Margin Pressure from Wage Inflation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/univest.in\/blogs-2\/it-software-stocks-below-fair-value\/#Technology_Disruption_Risk\" title=\"Technology Disruption Risk\">Technology Disruption Risk<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/univest.in\/blogs-2\/it-software-stocks-below-fair-value\/#How_to_Track_These_IT_Software_Stocks\" title=\"How to Track These IT Software Stocks\">How to Track These IT Software Stocks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/univest.in\/blogs-2\/it-software-stocks-below-fair-value\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/univest.in\/blogs-2\/it-software-stocks-below-fair-value\/#FAQs_on_Undervalued_IT_Software_Stocks\" title=\"FAQs on Undervalued IT Software Stocks\">FAQs on Undervalued IT Software Stocks<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/univest.in\/blogs-2\/it-software-stocks-below-fair-value\/#Which_IT_software_stocks_are_trading_below_the_sector_average_PE\" title=\"Which IT software stocks are trading below the sector average PE?\">Which IT software stocks are trading below the sector average PE?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/univest.in\/blogs-2\/it-software-stocks-below-fair-value\/#Is_Kellton_Tech_undervalued_compared_to_its_sector\" title=\"Is Kellton Tech undervalued compared to its sector?\">Is Kellton Tech undervalued compared to its sector?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/univest.in\/blogs-2\/it-software-stocks-below-fair-value\/#Which_of_these_IT_software_stocks_has_the_highest_return_on_equity\" title=\"Which of these IT software stocks has the highest return on equity?\">Which of these IT software stocks has the highest return on equity?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/univest.in\/blogs-2\/it-software-stocks-below-fair-value\/#What_is_the_market_capitalisation_of_Zensar_Technologies\" title=\"What is the market capitalisation of Zensar Technologies?\">What is the market capitalisation of Zensar Technologies?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/univest.in\/blogs-2\/it-software-stocks-below-fair-value\/#Does_Kellton_Tech_Solutions_pay_a_dividend\" title=\"Does Kellton Tech Solutions pay a dividend?\">Does Kellton Tech Solutions pay a dividend?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/univest.in\/blogs-2\/it-software-stocks-below-fair-value\/#What_are_the_main_risks_in_undervalued_IT_software_stocks\" title=\"What are the main risks in undervalued IT software stocks?\">What are the main risks in undervalued IT software stocks?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/univest.in\/blogs-2\/it-software-stocks-below-fair-value\/#Is_a_low_PE_enough_reason_to_buy_an_IT_software_stock\" title=\"Is a low PE enough reason to buy an IT software stock?\">Is a low PE enough reason to buy an IT software stock?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Why_These_IT_Software_Stocks_Screen_as_Undervalued\"><\/span><strong>Why These IT Software Stocks Screen as Undervalued<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The IT software industry currently carries an average price to earnings ratio of close to 18.8 times trailing earnings for companies in this mid and small cap services classification. A stock trading meaningfully below that average, while still posting positive return on equity, is a reasonable starting point for a relative valuation screen.<\/p>\n<p>All three companies below clear that bar, with Kellton Tech standing out for the steepest discount among these IT software stocks, though at a much smaller operating scale than Zensar Technologies.<\/p>\n<p>The table below lists these three companies alongside their current price, valuation multiple and return ratios.<\/p>\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\" cellspacing=\"0\" cellpadding=\"6\">\n<thead>\n<tr>\n<th>Company<\/th>\n<th>NSE Ticker<\/th>\n<th>CMP (Rs)<\/th>\n<th>PE Ratio<\/th>\n<th>Sector PE<\/th>\n<th>ROE<\/th>\n<th>Market Cap (Rs Cr)<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Zensar Technologies<\/td>\n<td>ZENSARTECH<\/td>\n<td>465.70<\/td>\n<td>13.83<\/td>\n<td>18.83<\/td>\n<td>16.41%<\/td>\n<td>10,736<\/td>\n<\/tr>\n<tr>\n<td>Onward Technologies<\/td>\n<td>ONWARDTEC<\/td>\n<td>290.00<\/td>\n<td>14.83<\/td>\n<td>18.83<\/td>\n<td>17.48%<\/td>\n<td>634<\/td>\n<\/tr>\n<tr>\n<td>Kellton Tech Solutions<\/td>\n<td>KELLTONTEC<\/td>\n<td>13.45<\/td>\n<td>7.85<\/td>\n<td>18.83<\/td>\n<td>11.36%<\/td>\n<td>717<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"Zensar_Technologies_Largest_Scale_Solid_ROE\"><\/span><strong>Zensar Technologies: Largest Scale, Solid ROE<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Zensar Technologies provides digital engineering, cloud and enterprise application services to clients across banking, insurance and manufacturing verticals. The stock trades at a price to earnings ratio of 13.83, below the sector average of 18.83, at a current price of around Rs 466.<\/p>\n<p>Return on equity of 16.41 percent is supported by a debt to equity ratio of just 0.02. On an EPS of Rs 34.12 and book value of Rs 207.37, the price to book multiple works out to 2.27, alongside a dividend yield of 3.16 percent.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Onward_Technologies_Highest_ROE_Smallest_Scale\"><\/span><strong>Onward Technologies: Highest ROE, Smallest Scale<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Onward Technologies provides engineering and product design services with a focus on automotive and industrial clients. Its price to earnings ratio of 14.83 sits below the sector average of 18.83, at a current share price of around Rs 290.<\/p>\n<p>Return on equity of 17.48 percent is the highest of the three IT software stocks in this list, and the debt to equity ratio of 0.16 remains low. On an EPS of Rs 19.22 and book value of Rs 113.85, the price to book multiple works out to 2.50.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Kellton_Tech_Solutions_Steepest_Discount\"><\/span><strong>Kellton Tech Solutions: Steepest Discount<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Kellton Tech Solutions provides digital transformation and enterprise software services with a global delivery model. The stock trades at 7.85 times trailing earnings, the steepest discount to the sector average of 18.83 among these three IT software stocks, at a current price of around Rs 13.<\/p>\n<p>Return on equity of 11.36 percent is the most modest of the group, and the debt to equity ratio of 0.24 is the highest of the three names. On an EPS of Rs 1.72 and book value of Rs 15.19, the price to book multiple of 0.89 is the only one of the three trading below book value.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Valuation_Snapshot_PE_PB_and_Dividend_Yield\"><\/span><strong>Valuation Snapshot: PE, PB and Dividend Yield<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Beyond the headline price to earnings ratio, book value multiples and dividend yield round out the valuation picture for these three companies. Kellton Tech is the only one of the three trading below its own book value, while Zensar Technologies pays the highest dividend yield of the group.<\/p>\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\" cellspacing=\"0\" cellpadding=\"6\">\n<thead>\n<tr>\n<th>Company<\/th>\n<th>Price to Book<\/th>\n<th>Book Value (Rs)<\/th>\n<th>Dividend Yield<\/th>\n<th>Debt to Equity<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Zensar Technologies<\/td>\n<td>2.27<\/td>\n<td>207.37<\/td>\n<td>3.16%<\/td>\n<td>0.02<\/td>\n<\/tr>\n<tr>\n<td>Onward Technologies<\/td>\n<td>2.50<\/td>\n<td>113.85<\/td>\n<td>2.83%<\/td>\n<td>0.16<\/td>\n<\/tr>\n<tr>\n<td>Kellton Tech Solutions<\/td>\n<td>0.89<\/td>\n<td>15.19<\/td>\n<td>0.00%<\/td>\n<td>0.24<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Zensar Technologies and Onward Technologies both pay meaningful dividend yields above 2.8 percent, while Kellton Tech Solutions currently pays no dividend and trades at less than its own book value.<\/p>\n<p style=\"margin-top: 24px;\"><strong><a href=\"https:\/\/univest.in\/screeners\">Check Live PE, PB and ROE Data on the Univest Screener<\/a><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Risks_to_Consider_Before_Buying_These_IT_Software_Stocks\"><\/span><strong>Risks to Consider Before Buying These IT Software Stocks<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A discount to the sector average price to earnings ratio does not remove company specific risk for IT software stocks exposed to client spending cycles.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Client_Concentration_Risk\"><\/span><strong>Client Concentration Risk<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Mid and small cap IT services companies often depend on a handful of large clients for a significant share of revenue, making earnings sensitive to contract renewals or client budget cuts.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Currency_and_Global_Demand_Sensitivity\"><\/span><strong>Currency and Global Demand Sensitivity<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Revenue earned in US dollars and other foreign currencies exposes these companies to exchange rate fluctuations, while client spending is closely tied to economic conditions in key export markets.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Margin_Pressure_from_Wage_Inflation\"><\/span><strong>Margin Pressure from Wage Inflation<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Rising employee costs and competition for skilled technology talent can compress margins if pricing does not keep pace with wage growth.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Technology_Disruption_Risk\"><\/span><strong>Technology Disruption Risk<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Rapid shifts toward automation and AI driven delivery models can disrupt traditional IT services pricing and require continuous reinvestment in new capabilities.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_to_Track_These_IT_Software_Stocks\"><\/span><strong>How to Track These IT Software Stocks<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Investors evaluating these three names should track quarterly deal wins, client concentration trends, and how the sector average PE moves relative to each company&#8217;s own multiple over time, rather than relying on the valuation gap in isolation among IT software stocks. Comparing these numbers regularly is the most reliable way to judge whether the discount to fair value remains intact or has already closed.<\/p>\n<p style=\"margin-top: 24px;\"><em>Download the <a href=\"http:\/\/apps.apple.com\/in\/app\/univest-stocks-investment\/id6443753518\" rel=\"nofollow noopener\" target=\"_blank\">Univest iOS App<\/a> or <a href=\"http:\/\/play.google.com\/store\/apps\/details?id=com.univest.capp&amp;hl=en_IN\" rel=\"nofollow noopener\" target=\"_blank\">Univest Android App<\/a> to track Zensar Technologies, Onward Technologies and Kellton Tech share prices live and set price alerts.<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Zensar Technologies, Onward Technologies and Kellton Tech Solutions are the three IT software stocks currently trading below the sector&#8217;s average price to earnings ratio of close to 18.8 times, while all three post positive return on equity. That combination makes them worth a closer look for investors who already want exposure to India&#8217;s IT services theme, though client concentration and currency risk mean position sizing and diversification still matter when adding these names to a portfolio.<\/p>\n<div style=\"background: #CC0000; border-radius: 8px; padding: 16px 20px; margin: 24px 0;\">\n<p style=\"color: #ffffff; font-size: 13px; line-height: 1.7; margin: 0;\"><strong style=\"color: #ffffff;\">Disclaimer:<\/strong> Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).<\/p>\n<\/div>\n<h2><span class=\"ez-toc-section\" id=\"FAQs_on_Undervalued_IT_Software_Stocks\"><\/span><strong>FAQs on Undervalued IT Software Stocks<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Which_IT_software_stocks_are_trading_below_the_sector_average_PE\"><\/span><strong>Which IT software stocks are trading below the sector average PE?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Zensar Technologies, Onward Technologies and Kellton Tech Solutions are currently trading below the IT software sector&#8217;s average price to earnings ratio of close to 18.8 times, based on live NSE and BSE pricing.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_Kellton_Tech_undervalued_compared_to_its_sector\"><\/span><strong>Is Kellton Tech undervalued compared to its sector?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Kellton Tech Solutions trades at a price to earnings ratio of 7.85, the steepest discount to the sector average of 18.83 among these three names, while delivering a return on equity of 11.36 percent.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Which_of_these_IT_software_stocks_has_the_highest_return_on_equity\"><\/span><strong>Which of these IT software stocks has the highest return on equity?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Onward Technologies has the highest return on equity of the three at 17.48 percent, slightly ahead of Zensar Technologies at 16.41 percent.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_the_market_capitalisation_of_Zensar_Technologies\"><\/span><strong>What is the market capitalisation of Zensar Technologies?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Zensar Technologies has a market capitalisation of around Rs 10,736 crore, with a price to earnings ratio of 13.83 against the sector average of 18.83.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Does_Kellton_Tech_Solutions_pay_a_dividend\"><\/span><strong>Does Kellton Tech Solutions pay a dividend?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Kellton Tech Solutions currently pays no dividend, while Zensar Technologies and Onward Technologies pay dividend yields of 3.16 percent and 2.83 percent respectively.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_are_the_main_risks_in_undervalued_IT_software_stocks\"><\/span><strong>What are the main risks in undervalued IT software stocks?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> The main risks include client concentration, currency and global demand sensitivity, margin pressure from wage inflation, and disruption from automation and AI driven delivery models.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_a_low_PE_enough_reason_to_buy_an_IT_software_stock\"><\/span><strong>Is a low PE enough reason to buy an IT software stock?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> A price to earnings ratio below the sector average is a useful starting screen for IT software stocks but not a standalone buy signal. Investors should also review client diversification, deal pipeline and margin trends before investing.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Zensar Technologies, Onward Technologies and Kellton Tech trade below the IT software sector&#8217;s average PE of near 18.8.<\/p>\n","protected":false},"author":35,"featured_media":220802,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24],"tags":[3802],"class_list":["post-220804","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market","tag-news"],"metadata":{"rank_math_internal_links_processed":["1"],"_thumbnail_id":["220802"],"_edit_lock":["1787812273:29"],"_last_editor_used_jetpack":["block-editor"],"rank_math_primary_category":["24"],"rank_math_seo_score":["83"],"rank_math_title":["Undervalued IT Software Stocks Trading Below Fair Value"],"rank_math_description":["These IT software stocks, Zensar 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