The shares of the drone solution provider gained up to 1 percent after the company bagged a prestigious work order worth Rs 46 crore from the Ministry of Defence.
Zen Technologies Ltd has a market capitalization of Rs 15,476.22 crore, the shares were trading at Rs 1,714.50 per share, increasing around 0.22 percent as compared to the previous closing price of Rs 1,715.75 apiece.
Reason for rise:-
According to the company filing, Zen Technologies Ltd bagged a prestigious work order worth Rs 46 crore from the Ministry of Defence for simulators with the Ministry of Defence. The contract is effective for a period of five years.
Furthermore, the deal emphasizes Zen’s capacity to satisfy India’s defence forces’ exacting operational requirements using innovative simulator technology. With this contract, Zen continues to lead the way in the defence simulation area, guaranteeing the highest levels of operational readiness and maintenance support for the Ministry of Defence’s essential defence assets.
Financial Condition:-
Looking forward to the company’s financial performance, revenue magnified by 93 percent from Rs 132 crore in Q1FY24 to Rs 255 crore in Q1FY25, but during the same period, net profit magnified significantly by 64 percent from Rs 48 crore to Rs 79 crore.
Order book and Inflow:-
The company has an order book of ₹1,158.54 crore as of June 2024, with anticipated substantial inflow in Q4 FY2025 and ramp-up starting in Q3. Management targets ₹1,200-1,300 crore in inflow by FY2025, expecting export revenues to rise in upcoming quarters.
Market outlook:-
Demand for counter-drone systems is growing, shifting from soft-kill to hard-kill solutions. Management projects a ₹10,000 crore market over the next 3-5 years, with potential for upward revisions. Zen Technologies leads the market, owning key IPs for detectors, radar, cameras, and control systems.
Management Guidance:-
The company expects EBITDA margins of 30% for anti-drone systems and 40% for training simulators, averaging around 35%. Export margins are generally higher than domestic margins, though they vary based on customer requirements and product types.
Remarkable return:-
The stock gave a return of 81.15 percent return in six months and a multi-bagger return of
128.59 percent return in a year. As a result, If an investor invests Rs 1 lakh in the company would be worth Rs 2.28 lakhs in a year.
Company profile:-
Zen Technologies Limited is an India-based company that designs, develops, and manufactures defence training systems, based on sensors and simulators technology. The Company’s category of products includes land-based military training simulators, driving simulators, live range equipment and anti-drone systems.
Written by:- Abhishek Singh
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