Shares of this defence stock under the ‘small-cap’ category gained around 3 percent in Friday’s trading session after Tata AIA Life Insurance Company bought 20 lakh shares of the company via Block Deal.
With a market capitalization of Rs 6,397.87 crores, the stocks of Zen Technologies Limited opened their trading hour on Friday at Rs 754 and currently trades at Rs 761.25, gaining approximately 3 percent compared to the previous closing levels of Rs 741.40 apiece.
As per the Block Deal data available with the National Stock Exchange (NSE), Tata AIA Life Insurance Company, on 14th December 2023, bought 20 lakh shares of the company at an average trading price of Rs 725.
On the selling side, three members from the Promoter group, viz, Kishore Dutt Atluri, Ravi Kumar Midathala, and Tara Dutt Atluri sold 2.50 lakh, 2.50 lakh, and 15 lakh shares respectively at the same average trading price mentioned above.
During the recent financial quarters, the company’s basic business parameters such as operating revenues and after-tax profits depict deep underperformance.
The former slipped from Rs 132.45 crores during Q1FY23-24 to Rs 66.5 crores during Q2FY23-24, and the latter, in congruence with the pattern, reduced sharply from Rs 48.44 crores to Rs 13.63 crores.
As of September 2023, the company’s total order book stands at Rs 1,403.43 crores of which equipment orders are Rs 1,146.40 crores and the rest of AMC orders.
Moreover, the company’s research & development (R&D) spending has increased to Rs 12.30 crores during H1FY24 compared to Rs 8.16 crores of expenditure during the same period in the previous financial year.
Zen Technologies Limited is engaged in the business of designing, developing, as well as manufacturing training simulators. The company’s product portfolio comprise simulators for various weapons, hand grenades, driving training simulator, and others.
Written by Amit Madnani
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