After some correction witnessed in the benchmark indices, retail investors are in continuous watch for stocks that have the potential to provide multi-fold returns.
Listed below is a multibagger stock under the ‘Defence’ industry having a low debt that one should keep on their radar:
Zen Technologies Limited
With a market capitalization of Rs 7,130 crores, the stocks of Zen Technologies Limited opened their trading session on Friday at Rs 838 and currently trade at Rs 849, a flat movement as compared to the previous closing levels of Rs 848.75 apiece.
Keeping a purview of just three months, the company’s stock has proven to deliver multibagger returns of 150 percent, i.e., if someone would have invested Rs 1 Lakh into the stock, it would have converted to Rs 2.50 Lakhs within a period of three months.
FY22-23 has proven to be a year with a lot of orders and grabbing opportunities of increasing the revenue and net profit numbers.
During recent quarters, the company’s basic business parameters such as the operating revenues and net profits showed a decent amount of growth with the former moving up from Rs 95 crores during Q4FY22-23 to Rs 132 crores during Q1FY23-24, and, the net profits taking a shift from Rs 23 crores to Rs 48 crores keeping the timeframe the same.
On an annual basis, the metrics mentioned above recorded impressive growth in numbers with the operating revenues shifting from Rs 69 crores during FY21-22 to Rs 218 crores during FY22-23, and, the net profits pacing up from just Rs 2 crores to profits of Rs 49 crores indicating an increase of around 2,350 percent.
Since FY19-20, the debt-to-equity ratio of the company has stayed at the desirable levels with the most recent movement being a reduction from 0.06 times during FY21-22 to 0.02 times during FY22-23.
The latest shareholding pattern data, as of June 2023, portrays the company’s Promoters holding a 57.45 percent stake, and the Foreign Institutional Investors (FIIs), showing confidence in the company, increasing their stake from 1.29 percent during the March 2023 quarter to 3.47 percent during the June 2023 quarter.
Zen Technologies Limited is involved in the business of designing as well as manufacturing training simulators. Some of the products offered by the company comprise Hand Grenade Simulator, Weapon Simulator, Tactical Engagement Simulator, etc.
It caters to armed forces, police & paramilitary forces, and government departments including mining, transport, and many other markets.
Written by Amit Madnani
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