 "portable-counter-drones")
Shares of Zen Technologies hit 5 per cent upper circuit as they scaled a new high of Rs 869.1 per share in Wednesday's intra-day trade. In the past eight days, the stock of this aerospace & defence company has rallied 44 per cent, on strong order book and robust results from June-ended quarter (Q1FY24).
In the past six weeks, the stock price of the company more-than-doubled or zoomed 110 per cent. Thus far in the calendar year 2023, it has skyrocketed 372 per cent, as compared to 7 per cent rise in the S&P BSE Sensex.
Zen Technologies company is engaged in indigenous design, development and manufacture of sensors and simulators technology based defence training systems and has relentlessly been providing defence training solutions and seamless services to Ministry of Defence (Armed Forces), Security Forces Police and Para-military forces. The company manufactures land based military training simulators, driving simulators, live range equipment and anti drone Systems.
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Besides, earnings before interest, taxes, depreciation, and amortisation (Ebitda) grew by 414 per cent YoY to Rs 68.79 crore. This strong performance in the quarter was driven by successful execution simulation export and domestic anti-drone orders.
In the prior week, Zen Technologies announced that the company received order worth of Rs 64.97 crore from Ministry of Defence.
"In July 2023, the company bagged orders worth around Rs 500 crore. This brings our cumulative order book position to around Rs 1,000 crore, a figure that exceeds the cumulative turnover of the last whole decade," the company said.
The management believes that this is merely the onset of an inflection point—a positive black swan event, resulting from the convergence of various factors such as Make In India, Atmanirbharata, Buy Indian IDDM, Defence Positive Lists, Simulation Framework, and the GoI's Sustainability Commitment.
Owing to escalating geopolitical risks and India’s improved international relations, the management is optimistic about making significant inroads in export markets, especially for simulators and anti-drone systems.
Meanwhile, as per the news sources, the Indian Army has ordered Rs 7,300 crore worth of weapon systems so far from Indian manufacturers, using emergency purchase powers, to counter border threats from China. Contracts worth another Rs 7000 crore are in the final stages of procurement and are likely to be signed in the coming weeks.
A range of equipment was ordered mainly from the private sector, which includes logistics & nano drones, counter drone systems, loitering munitions, armaments, simulators, unarmed aerial vehicle launched precision guided missile, communication systems, automatic spectrum monitoring systems and vehicles.
