Zen Technologies stock: Retail investors’ interest in defence companies has increased recently due to the government’s promotion of “Make in India” and other initiatives aimed at promoting domestic manufacturing, as well as the growing defence budgets that go hand in hand with modernization efforts.
In light of this, the stock value of Zen Technologies, a company that specializes in developing combat training programs and counter-drone equipment for defence and security forces, has consistently increased. Significant order acquisitions and improved financial results over consecutive quarters are driving this spike.
Three years ago, the company’s shares were trading at ₹185 apiece; today, they are trading at ₹962 apiece, giving its stockholders a 420% return. Over the previous four years, the stock even produced an incredible return of 1252%.
As per Mint, when examining the annual performance, the stock produced a 331% multi-bagger return in CY23. The stock reached a fresh high of ₹1,130 per share on May 3. In terms of financials, the company closed the fiscal year (FY24) with record profits, sales, and order wins.
The business’s revenue increased by 85% to ₹138.04 crore in Q4FY24 from ₹74.33 crore. Its net profit also improved significantly, rising to ₹33.04 crore from ₹17.27 crore, a 50% rise.
During the entire fiscal year of FY24, operating revenue increased by a remarkable 167% to ₹430.28 crore, and net profit saw a significant uptick of 243% to ₹129.23 crore from ₹37.64 crore in FY23.
As of March 31, 2024, the company had an order book that was over ₹1,400 crore. This puts it in a strong position for continued expansion in FY25, and it aims to break the ₹900 crore sales mark.
The corporation has increased its investment in R&D in an attempt to expand its capabilities and product line. In the future, the company plans to launch several cutting-edge goods designed to meet the needs of its global customer base as well as the Indian armed forces.
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The company has devoted more than thirty years to the design, development, and production of domestic sensors and simulator technologies for defence training systems. They have continuously supplied the Ministry of Defense (Armed Forces), Security Forces Police, and paramilitary groups with defence training solutions and flawless services.
According to the Jefferies analysis, the defense industry expects a noteworthy 13% compound annual growth rate between FY23 and FY30. It projects that during the next five to six years, the domestic defense opportunity will be valued between $100 and $120 billion.
