Mukul Agrawal and Tata AIA-backed defence small-cap multibagger stock received a big order from the Ministry of Defence, company aims for Rs 900 crore in revenue!

The company aims to strengthen its order book position by the end of FY'25 compared to FY'24.

Indian benchmark indices are making strides on the bourses, with the Sensex and Nifty advancing by 0.17 per cent each. However, a mixed trend is observed in the broader market indices, with the Nifty Midcap slightly declining by 0.18 per cent and the Small-Cap remaining almost unchanged.

Amidst this market backdrop, there's positive news for small-cap stock Zen Technologies, as the stock trades higher by nearly half a per cent at Rs 818 on the NSE. This surge follows a substantial order from the Ministry of Defence, Govt. of India, amounting to Rs 93 crore inclusive of 18 per cent GST.

During Q3 FY'24, the company secured orders worth Rs. 129 crore, bolstering its total order position to Rs. 1,434 crores by December 31, 2023. Notably, equipment orders constitute approximately Rs. 1,150 crores, with an expectation of execution by the financial year '25. Anticipating additional orders in the coming quarters, the company aims to strengthen its order book position by the end of FY'25 compared to FY'24.

With a target revenue of 900 crore for FY25 and a trailing twelve-month (TTM) revenue of Rs 369 crore, the company envisions robust growth. It expects macro factors to facilitate a minimum CAGR growth rate of 50 per cent from FY'26 to '28, sustaining the trajectory initiated.

An intriguing aspect is the significant shareholding of key investors, such as Mukul Mahavir Agrawal holding 11,26,765 shares and Tata Aia Life Insurance Co Ltd's Aggressive Growth Fund holding a substantial 20,90,906 shares.

Zen Technologies has exhibited remarkable performance, surging 217.55 per cent in the past year and delivering multibagger returns of 855.80 per cent over the last three years.

As for whether the company will achieve its revenue target, it's a matter of strategy execution, market dynamics, and the fulfillment of anticipated orders. Share your thoughts on the company's prospects in the comment section below.

Disclaimer: The article is for informational purposes only and not investment advice.