Shares of this Defence stock under the ‘small-cap’ category gained around 3 percent in Tuesday’s trading session after securing an order from the Ministry of Defence.
With a market capitalization of Rs 7,051.31 crores, the stocks of Zen Technologies Limited, a leading provider of military training as well as counter-drone solutions, opened their trading hour at Rs 835 and currently trade at Rs 839, gaining approximately 3 percent compared to the previous close of Rs 818.15 apiece.
The stocks are bullish today after the company, through a regulatory filing with the Bombay Stock Exchange (BSE) dated 5th September 2023, announced that it has won an order from the ‘Ministry of Defence’ (MoD) worth Rs 123.3 crores (inclusive of 18% GST).
As per the June 2023 quarter, the company’s order book stood at Rs 542 crores, and, during the current quarter, it successfully secured orders worth Rs 733 crores making the company’s cumulative order book standing at Rs 1,275 crores.
Mr. Mukul Agrawal, a well-known ace investor based in India, has invested in the company’s stock. As per the quarter ended June 2023, he holds around 11.27 Lakh equity shares equating to a 1.34 percent stake in the company.
In the last six months period, the company’s stock has proven to deliver multibagger returns of 204 percent. The same means that if someone had invested Rs 1 Lakh into the stock, it would have converted to Rs 3.04 Lakhs within the above-mentioned period.
Having a glance at the company’s financials, the operating revenues as well as after-tax profits have shown a decent amount of growth with the former moving from Rs 95.88 crores during Q4FY22-23 to Rs 132.45 crores during Q1FY23-24, and, the latter, during the same time period, more than doubled from Rs 23.37 crores to Rs 48.44 crores.
The latest shareholding pattern data available for the June 2023 quarter portray the company’s Promoters holding a 57.45 percent stake. Moreover, the Foreign Institutional Investors (FIIs), showing confidence in the company’s operations, increased their stake from 1.29 per cent during the March 2023 quarter to 3.47 percent during the June 2023 quarter.
Catering to domestic as well as international markets, Zen Technologies Limited is involved in the business of designing, developing, and manufacturing training simulators. It offers products to the armed forces, police & paramilitary forces, government departments, and many more.
Written by Amit Madnani
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