The Story of the Rise of Zen Technologies

Reading Time: 2 minutes

Company Business Model

Zen Technologies Limited is a company founded in 1993 and is engaged in the indigenous design, development, and manufacture of defence training systems, drones, and anti-drone solutions based on sensor and simulator technology. This defence stock provides defence training solutions and seamless services to the Ministry of Defence (Armed Forces), Security Forces Police, and Para-military forces.

Overview of Stock Performance

As can be seen from the 1 yr chart of Zen Technologies the stock is on a strong up-trend and has given 125% returns in 1yr.

Upward growth chart of Zen technologies — Source: Moneycontrol

Over the last three years, the stock has gained 747% and has gain 44% since the company published their Q4’23 numbers on 8th May’23.

Financial Performance

The company during the Q3’23 achieved a standalone net profit of ₹17 crore, registering a robust YoY growth of 1600%. For the full fiscal year 2023, the company recorded a net profit of ₹37.64 crore, an increase of 1782% over FY22’s net profit of ₹2 crore.

The company’s total revenues experienced YoY growth of nearly 364%, reaching ₹74.14 crore in Q4FY23. The company has won multiple orders worth ₹141.67 crore in Q4, increasing its orders in hand to ₹473 crore as of March 31st, 2023.

The Way Forward and the Management Outlook

Besides the Company’s mainstay, antidrone systems, drones and training simulations, going forward it will also focus on products that use Artificial Intelligence(AI) to amp up its product portfolio. Further, the Indian government’s push towards the adoption of more simulations across the armed forces augurs impressively for Zen Technologies. It opens up avenues to support the nation’s security as well as heighten the company’s own business and profitability. In the past, the Company has submitted multiple Suo Moto proposals to the Ministry of Defence, and in fact, a few of them have been accepted for procurement as well. Zen Technologies will continue to remain on track with this, while also focusing on upgrading and innovating. The Company is also diversifying its business to explore areas other than training simulators, and as such, it is participating in the design and developmental projects of the Ministry of Defence under the MAKE categorization.

Explore Mid & Smallcap Focused Portfolio here to discover more stocks like Zen Technologies

Subscribe Now

FAQs

1. Why Zen Technologies share is rising?

Zen Technologies share prices are rising due to recent contract wins ( including ₹160 crore contract from the Indian government and ₹340 crore contract from an export customer), strong financial performance, and a positive outlook for the defence sector.

2. What is the future of Zen Technologies share?

The future of Zen Technologies share is bright. The company has a strong track record of execution, a growing customer base, and a positive outlook for the defence sector. Zen Technologies is well-positioned to grow its revenue and profit in the coming years.

3. How do I buy Zen Technologies share?

You can buy the share through a stockbroker. To do this, you will need to open a trading account with a stockbroker and deposit funds into your account. Once you have done this, you can place a buy order. You can also invest in a portfolio of top defence stocks in India via smallcase.

Arvind Kothari

Founder - Niveshaay Investment Advisors | The content in this article is purely the author’s personal opinion and is for informational and educational purposes only. It should not be construed as professional financial advice and nor to be construed as an offer to buy /sell or the solicitation of an offer to buy / sell any security or financial products. The views and opinions stated in the content belong to the author. NIVESHAAY INVESTMENT ADVISORS does not uphold nor promote any of the views / opinions. | NIVESHAAY INVESTMENT ADVISORS is a SEBI registered research analyst (Regn. No. INA000017541)

Beat the NIFTY Indices with Estee’s Gulaq Gear 6!

The Good Bad and Ugly Weekly Review : 13 Jun 2023

Dislaimer: This platform is intended for informational purposes only and is not intended to provide investment advice. The stock prices displayed are delayed and may not reflect the most current market conditions. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. You can also consider consulting a financial advisor before making any investment decisions. Smallcase Technologies Private Limited shall not be responsible for any losses that may occur as a result of using this platform.

The views expressed in this article are those of the author and do not necessarily reflect the views of Smallcase Technologies Private Limited (STPL) or any of its associates. The information provided in this article is for educational and informational purposes only. Investors are responsible for their investment decisions and are responsible to validate all the information used to make the investment decision. Investors should understand that his/her investment decision is based on personal investment needs and risk tolerance, and performance information available on here is one amongst many other things that should be considered while making an investment decision. Past performance does not guarantee future returns.

Investments in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. The examples and/or scurities quoted (if any) are for illustration only and are not recommendatory.

The content and data available on the website, including but not limited to index value, return numbers and rationale are for information and illustration purposes only. Charts and performance numbers do not include the impact of transaction fee and other related costs. Past performance does not guarantee future returns and performances of the portfolios are subject to market risk. Data used for calculation of live returns and other information is provided by exchange approved third party vendors and has neither been audited nor validated by the Company. Detailed return calculation methodology is available here. Detailed volatility calculation methodology is available here.

The user agrees to assume complete and full responsibility for the outcomes of all of his/her investment decisions that he/she makes, including any direct, indirect, incidental, consequential, special, punitive or any other losses/damages if any that may be incurred by him/her. Smallcase Technologies shall not be responsible or liable for any direct, indirect, incidental, consequential, special, punitive or any other losses/damages arising out of the recipient's investments. For disclosures related to Smallcase Technologies Pvt Ltd, please visit this page .