Multibagger Defence Company Secures Rs 46 Crore AMC for Simulators with Ministry of Defence: DIIs Increase Stake from 3.37 Per cent to 8.10 Per cent!
The company’s shares have delivered a multibagger return of over 750 per cent in just 2 years.
This Small-Cap defence company has secured an Annual Maintenance Contract (AMC) valued at Rs 46 crore (inclusive of 18 per cent GST) from the Ministry of Defence for the upkeep of its simulators. The five-year contract will ensure the continued maintenance and operational readiness of simulators developed by Zen, further strengthening its relationship with the Ministry. This agreement reaffirms the Ministry's confidence in Zen's advanced defence solutions and its capability to meet the stringent operational demands of India's defence forces. Zen continues to lead the defence simulation sector, providing top-tier maintenance and support for critical defence assets.
The shares of Zen Technologies Limited are trading at around Rs 1688.75 per share. The company’s current market capitalization stands at Rs 15,247 crore. The stock has delivered a multibagger return of over 100 per cent in the past 1 year.
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As per the Quarterly Results, in Q1 FY25, Zen Technologies Limited recorded a revenue of Rs 255 crore grew by 92 per cent YoY. The operating profit for Q1 FY25 stood at Rs 111 crore. The net profit for Q1 FY25 was Rs 79 crore compared to Rs 48 crore. Looking at the annual performance, the company generated a revenue of Rs 440 crore in FY24. The operating profit for FY24 was Rs 181 crore with a net loss of Rs 130 crore.
Zen Technologies Limited, founded in 1996, specializes in designing, developing, and manufacturing combat training and counter-drone solutions for defense and security forces. The company focuses on indigenizing technologies to benefit the Indian armed forces, state police, and paramilitary forces. Headquartered in Hyderabad, India, Zen Technologies also has offices in the UAE and the USA.
Both the DIIs and FIIs have increased their stakes in the company in the recent quarter.
Investors must keep this small-cap stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.