Zen Technologies Ltd – Stock analysis, Zen Technologies Ltd – Fundamental analysis, Zen Technologies Ltd – Is it a buy?
About Company
Zen Technologies Limited was incorporated in 1996. The company designs develops and manufactures combat training solutions and Counter-drone solutions for defense and security forces. It is actively involved in the indigenization of technologies, which are beneficial to Indian armed forces, state police forces, and paramilitary forces.
Zen Technologies is headquartered in Hyderabad, India with offices in India, UAE, and the USA.
Zen Technologies Ltd – Product Portfolio
- Training Simulation Equipment: A leader in defense training solutions
- Counter-Drone Solutions: Anti-drone systems are used to detect or intercept unwanted drones and unmanned aerial vehicles (UAVs). System can detect and deactivate drones of any size within a 4-km radius.
- Annual Maintenance Contract(AMC): A recurring revenue stream with exceptional
profitability margins.
Zen Technologies Ltd –Key Fundamental Ratios
MARKET CAP : ₹ 7,851 Cr.
CMP : ₹ 934
PE : 62.2
Industry P/E : 60.6
ROCE : 46.3 %
ROE : 33.1 %
Return over 1 year: 213 %
Debt to equity: 0.00
Dividend Yield: 0.02%
Promoter holding: 55.1% ( Change in promoter holding: 0.00 %)
Zen Technologies Ltd – Financial Performance:
EBITDA (YoY) is increased by 145% and PAT has increased by 197%
Zen Technologies Ltd – Important highlights:
- Achieved record sales and profitability in the current year.
- Order wins of about ₹1,350 crores.
- July 2023 Order book 1000 crores. March 2024, Order book position surpassing ₹1,400 crores.
- FY2024 Revenue: 440 Crore. Targeting to exceed turnover of ₹900 crores in FY2025.
- Working on orders worth ₹900 crores, targeting replenishment of ₹1,200 crores.
- Aiming for a CAGR growth of 50% at least for the financial year ’26 to ’28
- Expecting EBITDA margin of 35% and PAT margin of 25%.
- Exploring opportunities for inorganic expansion through acquisitions outside
- Looking to raise up to 1,000 crores to support growth and expansion plans, including potential acquisitions
Note: I have not made any position in this scrip. It is still on my watch list. I am not SEBI registered person. The above views are my personal views only and are not a buy/sell recommendation. It is only for educational purposes. Please contact your financial advisor before making your financial decisions.