Shares of a defense company specializing in designing, developing, and manufacturing combat training and counter-drone solutions for defense and security forces rose 2 percent on Tuesday. The surge followed the company securing an Indian patent on November 25, 2024, for its “T90 Containerized Crew Gunnery Simulator.”
Price Movement
In Tuesday’s trading session, Zen Technologies Ltd.’s share price reached an intra-day high of Rs.1,849.00 per share, rising 2.04 percent from its previous close of Rs.1,812.60 apiece. The shares have retreated since then and currently trading at Rs.1,813.20 per share.
Reason for the rise
Zen Technologies Limited announced on November 25, 2024, the grant of an Indian patent for its “T90 Containerized Crew Gunnery Simulator” (T90 CGS). This marks the company’s 20th patent in the calendar year 2024 and the 10th in FY 2024-25.
The T90 CGS is designed to enhance the gunnery skills of T-90 tank commanders and gunners by simulating battlefield conditions and operational tasks. It includes a realistic replication of the T-90 tank turret, with dedicated stations for the commander and gunner equipped with controls and systems similar to those in the actual tank.
The simulator features a 3-degree-of-freedom motion platform for a realistic firing experience and allows instructors to customize training scenarios, ranging from individual skill development to team-based exercises under timed conditions.
Management Guidance
The management has set a conservative revenue target of Rs.900 crores for FY2025, following a performance of Rs.500 crores in the first half.
The management targets maintaining an EBITDA margin of 35 percent and a PAT margin of 25 percent. Additionally, they project a compound annual growth rate (CAGR) of 50 percent over the next three years, based on the revenue forecast for FY2025.
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Expansion Plans
The company also plans to diversify into Navy and Air Force segments through both organic growth and acquisitions. Acquisition targets are expected to range between Rs.100 crores and Rs.300 crores, focusing on both Indian and international opportunities.
Order Book
The company’s current order pipeline is worth Rs.3,500 crores, with Rs.1,200 crores projected for execution in the upcoming financial year. It is expected that order inflows will accelerate towards the conclusion of Q3 and into Q4 of FY2025.
Financial Performance
In its latest financial update, the company reported net sales of Rs.242 crore for Q2 FY25, rising exceptionally by 267 percent from Rs.66 crore in Q2 FY24. Profit after tax also rose to Rs.63 crore, rising 350 percent from Rs.14 crore.
Shareholding Pattern
As per the shareholding pattern of September 2024, the Promoters hold a 51.26 percent stake in the company, Foreign Institutional Investors (FII) hold a 5.72 percent stake, while the Domestic Institutional Investors (DII) and Retail investors own an 8.05 percent and 34.49 percent stake in Zen Technologies Ltd, respectively.
Company Profile
Zen Technologies Ltd. specializes in creating and producing combat training and counter-drone solutions tailored for defense and security forces. The company is dedicated to advancing indigenous technologies that benefit the Indian armed forces, state police, and paramilitary units.
Headquartered in Hyderabad, India, Zen Technologies also operates offices in the UAE and the USA.
Written by – Siddesh S Raskar
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