Shares of this smallcap company clocked 5 percent lower despite announcing an increase in net profits by 58 percent YoY. The shares have delivered a multibagger return of 235 percent to its shareholders in one year.
With a market capitalization of Rs. 8,686 crores, the shares of Zen Technologies Ltd started Monday’s trading session on a lower note at Rs. 1,105 compared to its previous close of Rs. 1,088.30. Within a few minutes of the opening bell, the shares locked a 5 percent lower circuit at Rs. 1,033.90 apiece.
On 4th May 2024, the company announced their quarterly and financial year ended 31st March 2024 results. The revenue increased by 42 percent from Rs. 99.51 crores during the December quarter to Rs. 141.38 crores in the March quarter. In addition, the net profits improved by 26 percent from Rs. 29.84 crores to Rs. 37.58 crores during the same period.
Comparing these metrics on a YoY basis, the revenue zoomed by 47 percent from Rs. 95.87 crores during Q4FY23 to Rs. 141.58 crores in Q4FY24. On the other hand, the net profits surged by 58 percent from Rs. 23.37 crores to Rs. 37.58 crores during the same timeframe.
As of March 2024, the defence firm boasted a comprehensive order book valued at Rs. 1,401.97 crores. Of this total, Rs. 790.80 crores of orders pertained to Training Simulators, while the remaining Rs. 611.17 crores were attributed to Anti-Drone Systems.
These orders were procured from a diverse range of clients spanning domestic and international markets, highlighting the company’s global reach and diverse product offerings in the defence sector. Moreover, the company has set an ambitious goal to surpass the Rs. 900 crore sales mark in FY25.
Furthermore, the company aims to diversify its product portfolio, particularly emphasizing in the Anti-Drone systems segment. Concurrently, it aims to augment its technical capabilities through amplified investments in research and development initiatives, with a strategic focus on venturing into high-value, intricate systems.
According to the latest shareholding pattern, Ace Investor Mr Mukul Agrwal, entering the stock in December 2016, currently holds approx 11.26 lakh equity shares equivalent to a 1.34 percent stake in this company. The current holding value of his investment amounts to Rs. 103.5 crores.
Incorporated in 1996, Zen Technologies designs develops and manufactures combat training solutions and Counter-drone solutions for the defence and security forces. It is actively involved in the indigenization of technologies, which are beneficial to Indian armed forces, state police forces, and paramilitary forces.
Written By Vaibhav Patil
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