Zen Technologies stock rose by 3.3% to ₹845 per share in early Tuesday trade after the company secured an order from the Ministry of Defence (MoD). The value of the order is ₹123.3 crore, the company said in a regulatory filing. This marks the third order received from MoD in less than a month, with the company previously securing orders of ₹72.79 crore on August 31 and ₹64.97 crore on August 12.
"As of June 30, 2023, our order book amounted to ₹542 crore. During the current quarter, we've successfully secured new orders worth ₹733 crore, raising our total order book to ₹1,275 crore (excluding tax). We have not excluded the orders executed during Q2 FY24 from the cumulative order book, and they shall be accounted for at the end of the quarter," the company said in a regulatory filing.
The strong orders were attributed to various factors such as Make in India, ‘Atmanirbharata’, Buy Indian IDDM, Simulation Framework, and the GoI's Sustainability Commitment.
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 paramilitary forces.
The company's shares have experienced a significant surge in value in the current year so far, climbing from ₹189.95 apiece to ₹828 apiece, marking a stellar gain of 349%. This is the best yearly performance for the stock since its listing in 2016.
Over the last three years, the stock has gained 1032%. In comparison, the Nifty Small-cap 100 index has gained 125% during the same period. Over the last five-year period, the stock has delivered a whopping return of 923%.
The company during the June quarter reported its highest-ever quarterly profit of ₹47.13 crore, a growth of 474% compared to the net profit of ₹8.21 crore in the same period of last year. The company's revenues experienced YoY growth of nearly 364%, reaching ₹132.45 crore in Q1FY24.
Owing to escalating geopolitical risks and India’s improved international relations, the company is optimistic about making significant inroads in the export markets, especially for simulators and anti-drone systems.
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