Shares of Zen Technologies surged 9.63% on Thursday’s early trades to reach a fresh 52-week high of ₹ 453.20 apiece on the National Stock Exchange (NSE) after the company received an order from the government of India. At 11:44 AM, its shares were trading at ₹ 432.65 apiece, up 4.66%.
Zen Technologies provides military training and anti-drone solutions. It is a renowned industry leader with over three decades of expertise in cutting-edge Military Training and Anti Drone Solutions. It has filed for over 110 patents and has successfully shipped more than 1000 training systems worldwide.
According to an exchange filing, the Hyderabad-based company won a significant order worth ₹ 202 crores from the Ministry of Defence, Government of India. The company said that it is looking forward to securing additional sizable contracts within the next quarter. This order win underscores the company’s commitment to delivering innovative solutions and driving transformative impact.
With a market capitalization of ₹ 3,454 crores Zen Technologies is a small-cap stock. It has a return on equity of 14.27% and an ideal debt-to-equity ratio of 0.02. Its shares were trading at a price-to-earnings ratio (P/E) of 80.17, which is significantly higher than the industry P/E of 23.56, indicating that it might be overvalued as compared to its peers.
The company’s promoters hold a 60.14% stake in it, followed by retail investors with 38.57% and foreign institutions with 1.29%.
Zen Technologies’s share price rallied by a massive 142% from ₹ 187.25 to ₹ 453.20 apiece since the beginning of the calendar year 2023, delivering multibagger returns. Thus, if an investor would have invested ₹ 1 lakh in the company’s shares at the beginning of this year, the value of their holdings would have been ₹ 2.42 lakhs today!
Written by Simran Bafna
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