Zen Technologies shares zoomed to their record high on Friday after Nuvama Institutional Equities reiterated its ‘Buy’ rating on the stock. The brokerage fixed a target price of Rs 2,200, an upside of 16.5 percent from the stock’s previous close.
Zen Technologies stock opened higher at Rs 1,924.75 on BSE. It rose 8% intraday to a high of Rs 2034.60 on BSE. The stock hit a 52 week low of Rs 687.70 on January 24, 2024. Later, the stock closed 1.32% higher at Rs 1912.40 on BSE.
In the current session, Total 2.12 lakh shares of the firm changed hands amounting to a turnover of Rs 41.66 crore. Market cap of the firm climbed to Rs 17,290 crore on BSE.
Nuvama’s bullish stance comes after the firm said it was making a strategic push into the US defence market.
“This is strategically positive for Zen Tech, which shall expand its serviceable market (details awaited) for both simulation training and anti-drone segments while offering (Unmanned Aerial System) UAS-technology to AVT,” said Nuvama.
The brokerage expects Nuvama expects the firm to clock a 50 percent revenue CAGR, 35 percent operating profit margins, and 25 percent PAT margins over the next two to three years. The brokerage said that a rise in order inflows in H2 FY25 is crucial to sustaining this trajectory.
“The US is currently one of the biggest markets for defence exports from India. However, we await further details on this partnership between Zen Tech and AVT Simulation to gauge the opportunity size,” Nuvama added.
On Thursday, the company said, “The company has formalized its partnership with Applied Visual Technology Inc. D.B.A AVT Simulation, a premier provider of customized training systems, through a Memorandum of Understanding (MoU) inked today in Florida. This collaboration is set to revolutionize simulation and training solutions for defense and security forces,” said Zen Technologies.”
In terms of technicals, the relative strength index (RSI) of Zen Technologies stands at 64.2, signaling it’s trading neither in the overbought nor in the oversold zone. Zen Technologies stock has a one-year beta of 1.1, indicating average volatility during the period. Zen Technologies shares are trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day and 200 day moving averages.
Zen Technologies Limited designs, develops, and manufactures defence training systems, based on sensors and simulators technology. The company’s category of products includes land-based military training simulators, driving simulators, live range equipment and anti-drone systems. The company also has a training platform in Hyderabad, with an integration of its complete product range. Its Anti-Drone System (ZADS) system works on drone detection, classification and tracking on passive surveillance, camera sensors and neutralization of threat by jamming drone communication.
See insights
Boost a post
Like
Comment
Send
Share
