The shares of the drone solution provider gained up to 3.2 percent after the company’s net profit and revenue zoomed significantly by 350 percent and 267 percent respectively in Q2FY25.
With a market capitalization of Rs 17,062.17 crore, the shares of Zen Technologies Ltd were trading at Rs 1,889.70 per share, increasing around 1 percent as compared to the previous closing price of Rs 1,878.40 apiece.
Reason for Rise:-
The shares of the company have seen positive movement after Zen Technologies Ltd announced its financial performance in which revenue magnified drastically by 267 percent on a yearly basis from Rs 66 crore in Q2FY24 to Rs 242 crore in Q2FY25, however, on a Quarter basis revenue diped by 5 percent from Rs 255 crore in Q1FY25 to Rs 242 crore Q2Y25.
Moreover, net profit is magnified multifold times by 350 percent on a yearly basis from Rs 14 crore in Q2FY24 to Rs 63 crore in Q2FY25, meanwhile on a quarter-on-quarter basis net profit plummeted by 20 percent from Rs 79 crore in Q1FY25 to Rs 63 crore in Q2FY25.
Recent orders:-
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.
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 165.92 percent return in a year. As a result, If an investor invests Rs 1 lakh in the company would be worth Rs 2.65 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 simulator 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
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
