Shares of this Multibagger Defence stock are trading in the green today after well-known Ace Investor picks a stake in the company. It has a market capitalization of Rs 5,200 crores.
The stocks of Zen Technologies Limited are trading in the green and are currently available at Rs 619. The scrip witnessed an intra-day high price of Rs 627.30 making it inch near the 52-week high price which was recorded at Rs 654.90 apiece.
Within a period of just 3 months, i.e., from April 2023, the scrip has proven to deliver multibagger returns of 103 percent. It means that if someone would have invested Rs 1 Lakh into the stock, it would have converted to Rs 2.03 Lakhs within the above-mentioned period.
According to the BSE shareholding data available, Ace Investor Mr. Mukul Agrawal bought around 11.27 Lakh equity shares of the company which equates to a 1.34 percent stake. Currently, the holding value of his stake stands at approximately Rs 70 crores.
Digging into the financials of the company, the operating revenues as well as net profits have shown drastic movements YoY with the former increasing from Rs 69 crores during FY21-22 to Rs 218 crores in FY22-23, and, the latter increasing from Rs 2 crores to Rs 49 crores keeping the timeframe the same. Due to the above, the net profit margins shot up from 3.74 percent during FY21-22 to 22.83 percent in FY22-23.
Moreover, the profitability metrics such as the return on equity (RoE) as well as return on capital employed (RoCE) increased with the former moving from 0.95 percent to 13.51 percent, and, the latter taking a shift from 1.72 percent to 22.12 percent.
The June 2023 quarter data shows the Promoter holding standing at 57.45 percent and the holdings of Foreign Institutional Investors (FIIs) standing at 3.47 percent.
Zen Technologies Limited is engaged in the business of designing, developing, and manufacturing training simulators. Some of the products offered by the company include Hand Grenades, Driving Training Simulator, Weapon Simulator, and many more. It serves the police and paramilitary forces, security forces, Government departments, etc.
Written by Amit Madnani
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