Rs 800 Crore Order Book and 95 per cent Market Share in Tank Simulators: The Company Secures Defence Contract Worth Rs 152 Crore for IADCS
The stock has delivered a 1-year return of 61.77 per cent and an impressive 3-year return of 608.49 per cent.
Zen Technologies Limited has secured a significant order from the Ministry of Defence, Government of India, valued at approximately Rs 152 crores, inclusive of taxes. This contract involves the supply of Integrated Air Defence Combat Simulators (IADCS) for the L70 Gun, marking a substantial achievement for the company. The order is expected to be executed within 18 months, underscoring Zen Technologies' strong presence in the defence sector. The company, specialising in combat training solutions and counter-drone technologies, continues to expand its footprint in the domestic market. With a robust order book and a focus on innovation, Zen Technologies is well-positioned to capitalise on emerging opportunities in the defence industry. The stock has delivered impressive multi-fold returns over the past three years, reflecting its strong market performance and investor confidence.
Zen Technologies Limited, established in 1996, is a leader in designing and manufacturing combat training and counter-drone solutions for defence and security forces. The company holds a dominant market share of over 95 per cent in tank simulators and has a strong order book of Rs 1,401.97 crores as of July 2023. Zen Technologies' product portfolio includes training simulation equipment, counter-drone systems, and annual maintenance contracts, which provide a recurring revenue stream.
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The company is headquartered in Hyderabad, India, with additional offices in the UAE and the USA. Recent strategic initiatives include expanding its R&D and manufacturing capabilities in Goa and acquiring a 51 per cent stake in Aituring Technologies Pvt. Ltd. Zen Technologies is committed to innovation, as evidenced by its 15 patents in FY24, and plans to increase its R&D expenditure to approximately Rs 30 crores in FY25. The company's strategic focus is on growing equipment sales, expanding its product portfolio, and exploring inorganic acquisitions.
As of March 27, 2025, Zen Technologies Limited's stock is priced at Rs 1433. The stock's 52-Week High is Rs 2576.05, and its 52-Week Low is Rs 889.25. Zen Technologies Limited has a market capitalisation of Rs 13,034 crore. The stock has delivered a 1-year return of 61.77 per cent and an impressive 3-year return of 608.49 per cent. The company's Price-Earnings (PE) Ratio stands at 59.33. Logical Solutions Limited is a major public shareholder, holding 1.05 per cent of the company's shares.
In the Quarterly Results of December 2024, the company reported a revenue of Rs 152.21 crore, reflecting a YoY growth of 52.94 per cent compared to Rs 99.52 crore in December 2023. The operating profit stood at Rs 44.20 crore, marking a 4.02 per cent increase from Rs 42.49 crore in the same quarter last year. The profit after tax (PAT) increased by 29.89 per cent to Rs 39.72 crore from Rs 30.58 crore in December 2023.
In FY24, the company posted a revenue of Rs 439.85 crore, registering a 100.98 per cent growth compared to Rs 218.85 crore in FY23. The net profit for the year stood at Rs 127.88 crore, up 199.20 per cent from Rs 42.74 crore in the previous financial year.
With a PE ratio of 61.6x, the company trades at a premium compared to the industry PE of 49.4. The company has ROCE of 46 per cent and ROE of 33 per cent.
Investors must keep this Mid-Cap stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.