Shares of a defense company focused on combat training and counter-drone solutions for defense and security forces dropped by over 7 percent on Tuesday, following a major block deal involving shares worth Rs.386 crore.
Price Movement
In Tuesday’s trading session, Zen Technologies Ltd.’s share price fell to an intra-day low of Rs.1,771.10 per share, plunging 7.4 percent from its previous close of Rs.1,912.25 apiece. The shares have retreated since then and currently trading at Rs.1,818.85 per share.
What Happened
Shares of Zen Technologies Ltd. declined following a block deal in which 20 lakh shares were traded during the early minutes of Tuesday’s session.
This transaction, representing 2.5 percent of the company’s total outstanding equity, was executed at an average price of Rs.1,800 per share. The total value of the deal amounted to Rs.386 crore, significantly impacting the stock’s performance.
Recent Developments
Zen Technologies Limited received an Indian patent for its “T90 Containerized Crew Gunnery Simulator” on November 25, 2024, its 20th patent in 2024. The simulator replicates T-90 tank conditions, offering realistic training with a 3-degree motion platform and customizable scenarios.
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.
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.
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.
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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
Disclaimer
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