Rs 956.74 Crore Order Book and FIIs & DIIs Increase Stake: Multibagger Defence Drone Stock to Keep Under Radar as Company Reports a 365 Per Cent Jump In PAT
The stock gave multibagger returns of 165 per cent in just 1 year, 2,500 per cent returns in 5 years and a whopping 5,500 per cent in a decade.
On Monday, shares of Zen Technologies Limited plunged 0.77 per cent to Rs 1,863.90 per share from its previous closing of Rs 1,878.40 with an intraday high of Rs 1,940.20 and an intraday low of Rs 1,839.15. The shares of the company saw a spurt in volume by more than 3 times on BSE.
Zen Technologies is a leader in state-of-the-art defence training solutions and anti-drone systems. With over three decades of experience, Zen has built a stellar reputation in defence training and combat readiness measurement for security forces. Zen specializes in the Indigenous design, development and manufacture of sensor and simulator technology-based defence training and anti-drone systems. Serving the Ministry of Defense, security forces, police, and paramilitary forces, Zen has a dedicated R&D facility in Hyderabad, recognized by the Ministry of Science and Technology, Government of India. Zen has filed for over 150 patents and has shipped more than 1,000 training systems worldwide.
According to Quarterly Results, the net sales increased by 264 per cent to Rs 241.84 crore, the operating profit increased by 264 per cent to Rs 88.48 crore and the net profit increased by 365 per cent to Rs 63.44 crore in Q2FY25 compared to Q2FY24. In its half-yearly results, the net sales increased by 150 per cent to Rs 496.46 crore, the operating profit increased by 112 per cent to Rs 202.94 crore and the net profit increased by 130 per cent to Rs 142.93 crore in H1FY25 compared to H1FY24. Looking at its annual results, net sales increased by 101 per cent to Rs 439.85 crore and net profit increased by 159.2 per cent to Rs 129.05 crore in FY24 over FY23.
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The company successfully raised Rs 1,000 crore through a Qualified Institutional Placement (QIP), exceeding expectations with five times subscription. Prominent investors like Kotak Mutual Fund, Motilal Oswal, and White Oak Offshore participated, affirming their belief in the company's growth trajectory. The company's robust liquidity position of Rs 1,103 crore enables strategic investments in R&D and potential acquisitions in simulator and electronic warfare technologies. This strategic approach, combined with a focus on innovation, positions the company to capitalize on the growing global demand for advanced military technologies.
The company has a market cap of over Rs 16,000 crore with a 3-year stock price CAGR of 140 per cent. As of September 30, 2024, the total order book is Rs 956.74 crore. In September 2024, FIIs increased their stake to 5.72 per cent and DIIs increased their stake to 8.05 per cent compared to June 2024. The stock gave multibagger returns of 165 per cent in just 1 year, 2,500 per cent returns in 5 years and a whopping 5,500 per cent in a decade. Investors should keep an eye on this multibagger aerospace & defence stock.
Disclaimer: The article is for informational purposes only and not investment advice.