Amidst the ongoing bullish trend in the Indian stock market, certain mid-and small-cap stocks have outperformed their larger counterparts in CY23 so far. Zen Technologies is one such small-cap stock that has demonstrated a consistent upward trajectory in its share price since the beginning of the year.
Zen Technologies is engaged in the indigenous design, development, and manufacture of defence training systems, drones, and anti-drone solutions based on sensor and simulator technology. It provides defence training solutions and seamless services to the Ministry of Defence (Armed Forces), Security Forces Police, and para-military forces.
The company's shares have experienced a significant surge in value in the current year so far, climbing from ₹184.25 apiece to ₹420 apiece, marking a stellar gain of 128%. Additionally, the shares have seen a remarkable 158% rise from their 52-week low.
Investors were elated by the company's Q4FY23 performance, which was released on May 08. Since then, the stock has experienced a one-way rally, gaining 44% to mark a new record high of ₹444 apiece in the previous trading session. This boom has resulted in a stunning gain of 472% in the last two-year period.
Over the last three years, the stock has gained 863%. In comparison, the Nifty Smallcap 100 index has gained 134% during the same period.
The company during the March quarter achieved a standalone net profit of ₹17 crore, representing a robust YoY growth of 1600%. For the full fiscal year 2023, the company recorded a net profit of ₹37.64 crore, an increase of 1782% over FY22's net profit of ₹2 crore.
The company's revenues experienced YoY growth of nearly 364%, reaching ₹74.14 crore in Q4FY23. It secured multiple orders worth ₹141.67 crore in Q4, increasing its orders in hand to ₹473 crore as of March 31st, 2023.
The company also placed bids for substantial orders and it expects the results to be out by H1FY24. Notably, it has made substantial progress in executing export orders and generating corresponding revenues throughout the fiscal year 2022-2023.
The company expresses confidence in fulfilling the remaining portion of the export order within the first half of the fiscal year 2023-2024.
During the March quarter, FIIs raised their stake sharply in the company to 1.3% from 0.3% in Q4FY22, while the DIIs own just 0.2% shares in the company. The promoters at the end of the March quarter held a 60.1% stake and regular shareholders own 37.8%.
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