Zen Technologies advanced 4.84% to Rs 212.15, extending gains for third consecutive session.
The stock has added 11.04% in three sessions, from its recent closing low of Rs 191.60 recorded in 3 October 2022. In the past three months, the stock has added 21.18% while the benchmark Sensex gained 7.24% during the same period.
On the technical front, the stock's daily RSI (relative strength index) stood at 60.220. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.
On the daily chart, the stock is trading above its 50-day, 100-day and 200-day simple moving average (SMA) placed at 197.80, 186.65 and 195.02, respectively.
In an exchange filing made today, the company said that CRISIL Ratings has revised its outlook on the long-term bank facilities of Zen Technologies (ZTL) to 'positive' from 'stable' while reaffirming the rating at 'CRISIL BBB'.
CRISIL said that the revision in outlook reflects ZTL's improved performance. Despite a strong order book, execution during the initial quarters were slowed down by Covid-situation and semiconductor and electronic chips shortage.
However, with the easing of semiconductor chip shortage, the company's performance recouped in Q4 FY2022. Strong performance continued in Q1FY23 also, backed by the healthy order book of over Rs 400 crore.
The ratings continue to factor the established market position of the company in the design, development, and manufacture of training simulators for the defense segment. The ratings also factor in the company's healthy financial risk profile. These strengths are partially offset by exposure to tender based nature of operations and working capital intensive operations.
Zen Technologies develops, designs and manufactures PC-based training simulators and anti-drone systems for Ministry of Defence, police and para-military forces, government departments, and private players.
The company reported a consolidated net profit Rs 7.46 crore in the quarter ended June 2022 as against net loss of Rs 1.14 crore during the previous quarter ended June 2021. Sales rose 272.19% to Rs 37.07 crore in Q1 FY23 from Rs 9.96 crore in Q1 FY22.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
