Rs 73 to Rs 917: This defence stock turned into a multibagger in three years, down 19% from record high
Rs 73 to Rs 917: This defence stock turned into a multibagger in three years, down 19% from record high
Shares of Zen Technologies Ltd have delivered 1143% returns in the last three years. The aerospace and defence stock, which ended at Rs 73.25 on May 7, 2021 was trading at Rs 917 in the current session on BSE. However, the stock is down 19% from its record high of Rs 1130 reached on May 2 this year. In comparison, the benchmark BSE small cap index has rallied 101%. The 30 stock benchmark Sensex zoomed 47% during the same period. In the current session, Zen Technologies stock rose 4.26% to Rs 927.10 on BSE against the previous close of Rs 889.25 on BSE.
Market cap of the defence firm climbed to Rs 7791.74 crore on BSE. Total 9694 shares of the firm changed hands amounting to turnover of Rs 88.93 lakh on BSE.
Zen Technologies stock has gained 198% in a year and risen 16% since the beginning of this year. The share fell to a 52-week low of Rs 297 on May 12, 2023.
Progressive Shares has a price target of Rs 1100 on the Zen Technologies stock.
“The company continues to shows continued growth which is driven by the strong orderbook and its timely execution. Coupled with stellar execution and sustained growth for FY25E, the management is optimistic on the growth of the domestic and export markets with the current tailwinds. We continue to maintain our target price of Rs 1100,” said the brokerage in its report.
Abhijeet from Tips2trades said, “Zen Technologies stock price is bearish on the Daily charts with strong resistance at 971. A Daily close below support of 882 could lead to a fall till 814 in the near term.”
The stock is neither oversold nor overbought on technical charts with its relative strength index (RSI) at 36.3. It had a very low volatility of 0.7 in a year.
Zen Technologies shares are trading lower than 5 day, 10 day, 20 day, 30 day, 50 day but higher than the 100 day, 150 day and 200 day moving averages.
Consolidated net profit zoomed 72.97 percent year-on-year to Rs 34.94 crore in Q4. Net sales climbed 47.47 percent YoY to Rs 141.39 crore in the last quarter.
The anti-drone technology and defence training solutions provider expects sustained growth in FY25, with a target to surpass the Rs 900-crore sales mark. As of March 31, the company’s order book exceeded Rs 1,400 crore.
The board of directors of Zen Technologies recommended a final dividend on equity shares at the rate of 100 percent i.e. Re 1 per equity share of Re 1 each for FY24.
The company’s net profit climbed nearly 200 percent to Rs 127.88 crore in the last fiscal. Sales rose 101 percent to Rs 439.85 crore in FY24.
During the year, Zen Technologies secured orders worth Rs 1,358 crore, “reflecting a notable shift in the armed forces’ perception towards training equipment and anti-drone systems. This transformation is further underscored by the increasing demand for our products from friendly foreign nations,” the company said.
Zen Technologies designs, develops and manufactures state-of-the-art combat training solutions for the training of defence and security forces worldwide. The firm’s headquarters are located in Hyderabad with offices in India and USA. Zen Technologies manufactures over 40 different Live Fire, Live Instrumented, Virtual and Constructive training systems to support individual and collective training capabilities.
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