In an extraordinary feat of financial growth, Zen Technologies, a prominent aerospace and defence stock, has delivered an astonishing return of 12,800% over the past decade. From a modest investment of Rs 1000, the value has soared to an impressive Rs 1.28 lakh, marking it as a noteworthy player in the defence sector.
Defence Stock on the Rise
Zen Technologies has garnered significant attention from brokerage HDFC Securities, earning a buy rating with a projected upside of 10%. The company’s order book, standing at Rs 1434 crore as of December 31, 2023, provides substantial revenue visibility, backed by a commendable success rate of around 80% in securing orders.
The brokerage emphasizes Zen Technologies’ strategic positioning to capitalize on the government’s push towards indigenization in defence. Leveraging its technical prowess, expertise, and a successful track record, the company aims to be a prime beneficiary of emerging opportunities in the sector.
Future Outlook and Growth Prospects
With a robust order inflow and a healthy order book, Zen Technologies anticipates significant growth in the next three to four years. The company sets ambitious revenue targets of Rs 450 crore in FY24E and Rs 900 crore in FY25E, reflecting its confidence in its indigenization capabilities and execution prowess.
Investor Optimism and Analyst Recommendation
HDFC Securities, recognizing Zen Technologies as a strong player in the anti-drone systems market, has initiated a BUY coverage on the stock with a target of Rs 1,032 over the next two to three quarters. The company’s position in the S&P BSE SmallCap further enhances its visibility in the market.
Zen Technologies Share Price Performance
Zen Technologies’ share price history reflects its stellar performance. According to BSE analytics, the stock has delivered remarkable returns, with a 248% increase in one year, 369% in two years, 1,004% in three years, and an astounding 12,836% in the past ten years. This unprecedented growth is a testament to the company’s resilience and strategic positioning in the defence sector.
