 "Zen Technologies rallies 8%, hits new high on pact with AVT Simulation")
Shares of Zen Technologies (Zen) hit a new high of Rs 2,034.60, as they rallied 8 per cent on the BSE in Friday’s intra-day trade in an otherwise subdued market after the company said it has formalized its partnership with Applied Visual Technology Inc. D.B.A AVT Simulation through a Memorandum of Understanding (MoU) inked in Florida.
The stock price of the aerospace & defense firm surpassed its previous high of Rs 1,998.80 touched on October 15, 224. In comparison, the BSE Sensex was up 0.08 per cent at 81,831 at 09:48 am.
Zen, a global leader in defense training and anti-drone solutions, said it is making a strategic push into the US defense market. AVT Simulation is a premier provider of customized training systems. This collaboration is set to revolutionize simulation and training solutions for defense and security forces.
This strategic alliance integrates Zen’s cutting-edge technologies with AVT’s expertise in delivering tailored simulation systems. Together, the companies will develop next-generation solutions for defense, emergency response, and commercial applications, addressing the surging demand for immersive, cost-effective training platforms in the US, the company said in a press release.
Zen has developed strategic solutions tailored to the specific needs of End Users Ministry of Interiors and Ministry of Defence including customized training programs aligned with the requirements of the US Army and the US Department of Defense.
Meanwhile, thus far in the calendar year 2024, the stock price of Zen has zoomed 156 per cent, as compared to 13 per cent rise in the BSE Sensex. A strong outperformance of the stock was on the back of robust earnings for the first half (April to September) of the financial year 2024-25 (H1FY25). The company have exceeded the revenue and profit after tax of the previous year FY24 in the H1FY25 itself. As of September 30, 2024, the company’s order book was strong at Rs 956.74 crore, positioning Zen well for future growth.
Meanwhile, the Indian government has significantly increased its defence budget to support modernisation and capability enhancement. The overall Indian defence market is estimated to reach $70 billion by 2030, driven by the government's focus on modernisation and indigenization. The domestic defence production is projected to exceed $25 billion by 2025, creating significant opportunities for both public and private sector players, Zen said in its FY24 annual report.
India's defence exports have witnessed substantial growth, driven by the government's focus on promoting exports and establishing India as a global defence manufacturing hub. The government has set an ambitious target of achieving $5 billion in defence exports by 2025, supported by policy measures such as simplified export procedures, lines of credit for foreign countries, and marketing support to domestic companies, the company said.