Defence stock jumps after receiving ₹152 Cr order from the Ministry of Defence

During Thursday’s trading session, shares of a company engaged in designing, developing and manufacturing combat training solutions and counter-drone solutions for defense and security forces jumped around 2.5 percent on BSE, after securing an order worth Rs. 152 crores from the Ministry of Defence.

Price Movement

With a market cap of Rs. 12,926.4 crores, the shares of ZEN Technologies Limited hit an intraday high at Rs. 1,478.8, up by around 2.5 percent, as compared to its previous closing price of Rs. 1,443.55. The stock has delivered positive returns of nearly 52 percent over a one-year period, while over 42 percent of negative returns year-to-date.

What’s the news

According to the latest regulatory filings, ZEN Technologies Limited has been awarded an order valued at ~Rs. 152 crores by the Ministry of Defence, Government of India. The order involves the supply of the Integrated Air Defence Combat Simulator (IADCS) for the L70 Gun and is set to be executed within 18 months.

Previous Updates

28th February: Zen Technologies was granted a patent for its Automated Hard Kill Firearm Mounting System. This advanced system enhances defence capabilities through autonomous target detection and engagement, significantly reducing response times and improving operational efficiency in combat scenarios.

3rd March: The company received its third patent for the T-90 Tank Simulator – the Containerized Driving Simulator System (T-90 DS). This follows previous patents for the Basic Gunnery Simulator (BGS) and Crew Gunnery Simulator (CGS).

Additionally, Zen holds three patents for T-72 and BMP-II tank simulator variants, further reinforcing its dedication to developing advanced military training systems for armoured vehicle operations.

Also read: Bonus Shares: Monopoly stock jumps 6% after board to consider bonus issue

Financial Performance

Zen Technologies reported a significant growth in revenue from operations, experiencing a year-on-year increase of nearly 52 percent, rising from Rs. 100 crores in Q3 FY24 to Rs. 152 crores in Q3 FY25. Similarly, during the same period, the company’s net profit increased from Rs. 30 crores to Rs. 43 crores, representing a growth of nearly 43.3 percent YoY.

Key Financial Ratios

In terms of key financial metrics, Zen Technologies has a Return on Equity (RoE) of 33 percent and a return on capital employed (RoCE) of 46 percent. Additionally, the stock has a P/E ratio of 61.7, compared to the industry’s P/E ratio of 49.4, and its debt-to-equity ratio stands at 0.04.

About the company

Zen Technologies Limited is principally engaged in the design, development and manufacture of training simulators, anti-drone systems and operations for para-military forces, armed forces, security forces, police and government departments. The company serves both domestic and international markets, and its manufacturing unit is located at Hardware Park, Maheswaram Mandal, Telangana, India.

Written by Shivani Singh

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Defence stock jumps after receiving ₹152 Cr order from the Ministry of Defence appeared first on Trade Brains.