This Defence stock engaged in designing, developing, and manufacturing combat training solutions and counter-drone solutions for defence and security forces, jumped 3 percent after investing USD 10 million for expansion of operations.
Stock Price Movement:
With a market capitalization of Rs. 9,798.31 crores, the share of Zen Technologies Limited has reached an intraday high of Rs. 1,143 per equity share, rising nearly around 2.63 percent from its previous day’s close price of Rs. 1,113.70. Since then, the stock has retreated and is currently trading at Rs. 1,085.20 per equity share.
What Happened:
Zen Technologies Limited has invested USD 10 million in its wholly owned subsidiary, Zen Technologies USA, Inc. As part of this investment, Zen USA has allotted 71,42,857 shares at USD 1 per share, with a premium of USD 0.4 per share, on February 19, 2025. This move aims to expand Zen Technologies’ presence in the U.S. defence market and leverage new business opportunities.
Zen Technologies USA, Inc., incorporated in Delaware, USA, in 2018, specializes in combat training simulators and counter-drone technology for military and security forces. The company provides advanced live fire, virtual, and constructive training solutions to enhance combat readiness.
This investment reinforces Zen Technologies’ commitment to global expansion and aligns with its vision to provide cutting-edge defence solutions worldwide. Despite the investment, Zen USA remains a wholly owned subsidiary of Zen Technologies Limited
Order book:
Zen Technologies Limited has a strong order book worth Rs. 816.91 crore, with Rs. 492.50 crore from domestic orders and Rs. 324.41 crore from exports.
The company focuses on two key product categories, such as training simulators, which have orders worth Rs. 395.75 crores (Rs. 299.07 crore domestic, Rs. 96.68 crore export), and anti-drone systems, with orders of Rs. 421.16 crores (Rs. 193.43 crores domestic, Rs. 227.73 crores export). This well-diversified order book highlights the company’s balanced growth across different markets and product segments.
Recent quarter results:
Zen Technologies Limited’s revenue has increased from Rs. 100 crore in Q3 FY24 to Rs. 152 crore in Q3 FY25, which has grown by 52 percent. The net profit has also grown by 43.33 percent from Rs. 30 crore in Q3 FY24 to Rs. 43 crore in Q3 FY25.
Written By – Nikhil Naik
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
