Zen Technologies Ltd logo

Zen Technologies Ltd

ZENTEC NSE

Zen Technologies Limited was incorporated in 1996. The company designs develop and manufacture 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. [1] [2] [3]

AI Verdict: HOLD Confidence: 5%

Zen Technologies has delivered exceptional 5-year profit CAGR of 128% and is nearly debt-free, but the stock trades at a steep PE of 79.7x with TTM sales declining 29% and working capital days ballooning to 543 days. At a market cap of Rs.17,133 Cr, the current valuation leaves little margin of safety given the recent earnings deceleration.

Key Fundamentals

SmallcapEngineeringAerospace & Defense
Market Cap
₹16,268 Cr
Volatility
Moderate
P/E Ratio
82.65
EBITDA
₹245 Cr
Return on Equity
15.13%
Debt to Equity
0.04
Book Value
₹209.22
EPS
₹18.54
52W High
₹2,065
52W Low
₹1,223

Technical Indicators

Key Insights

Strengths

4
  • Company has reduced debt.
  • Company is almost debt free.
  • Company has delivered good profit growth of 128% CAGR over last 5 years
  • Company's median sales growth is 44.8% of last 10 years

Weaknesses

4
  • Stock is trading at 9.02 times its book value
  • Earnings include an other income of Rs.86.4 Cr.
  • Promoter holding has decreased over last 3 years: -11.6%
  • Working capital days have increased from 283 days to 543 days

Growth Rate

Revenue Growth
-33.36% ↘
Net Income Growth
-27.41% ↘
Cash Flow Change
-1189.94% ↘
ROE
-37.92% ↘
ROCE
-41.16% ↘
EBITDA Margin (Avg.)
-24.40% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 1d ago
HOLD
Risk high

Zen Technologies has delivered exceptional 5-year profit CAGR of 128% and is nearly debt-free, but the stock trades at a steep PE of 79.7x with TTM sales declining 29% and working capital days ballooning to 543 days. At a market cap of Rs.17,133 Cr, the current valuation leaves little margin of safety given the recent earnings deceleration.

Bull Case 7
  • Company has delivered outstanding 5-year compounded profit growth of 128% CAGR, reflecting strong execution in the defence electronics segment
  • Company is almost debt-free, providing financial flexibility and low balance sheet risk in a capital-intensive sector
  • 3-year stock CAGR of 71% and 5-year CAGR of 87% demonstrate sustained market confidence and re-rating
  • Median sales growth of 44.8% over last 10 years indicates consistent order book conversion and revenue scale-up
  • 3-year compounded sales growth of 46% shows strong medium-term demand tailwinds from India's defence indigenisation push
  • 67% of analyst ratings are Buy with zero Sell ratings out of 6 total coverage initiations, signalling positive Street consensus
  • 10-year compounded profit CAGR of 56% demonstrates the company's ability to grow earnings across multiple defence procurement cycles
Bear Case 8
  • Stock trades at 79.7x PE, a significant premium that prices in years of flawless execution with no room for disappointment
  • TTM sales have declined 29% year-over-year, indicating potential order execution delays or lumpy revenue recognition
  • TTM profit has declined 31%, showing that the earnings momentum has sharply reversed in the most recent period
  • Working capital days have surged from 283 to 543 days, signalling severe cash conversion cycle deterioration and potential collection issues
  • Price-to-book of 9.19x is elevated for an industrials company, leaving significant downside risk if growth disappoints
  • Promoter holding has decreased by 11.6% over the last 3 years, raising concerns about insider confidence at current valuations
  • Earnings include other income of Rs.86.4 Cr, which flatters reported profitability and may not be sustainable or recurring
  • Last year ROE declined to 11% from 3-year average of 18%, indicating deteriorating capital efficiency despite the premium valuation

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 14h ago
Headwinds 3
  • Elevated valuation multiples Jun 16

    Stock trades at PE of 111.09 and P/B of 201.78, significantly higher than established defence sector peers, reflecting growth expectations that must be met.

  • Stock down ~6% over past year Jun 16

    Share price fell from ₹1,904 on 12 June 2025 to ₹1,789 on 12 June 2026, delivering negative returns despite strong fundamentals.

  • Government order dependence risk Jun 16

    Key challenges include defence procurement delays pushing projects to subsequent years, order concentration risk, and elongated timelines that significantly influence performance.

Positives 6
  • India's $2B drone order boost Jun 3

    India planning military drone orders worth over $2 billion with domestic manufacturers, with deliveries in 18-24 months. Zen Technologies surged 8.86-11.54% on the news.

  • Smart Border Suite launched May 27

    Launched India's first Integrated Smart Border Suite targeting 6,000 km of borders with Pakistan and Bangladesh; shares rose 5.5% to ₹1,691 on the announcement.

  • Robust ₹1,336 crore order book Jun 16

    Consolidated order book stands at ₹1,336 crore as of 31 March 2026, with majority scheduled for execution from FY27 onwards. Recent new orders include ₹289 crore and ₹152 crore from MoD.

  • Strong margins and return ratios Jun 16

    Operating margins at 45.3% in FY25 with ROE of 24.61% and ROCE of 32.94%, indicating efficient capital utilization with only ₹52.2 crore total debt.

  • Strategic acquisitions in FY25 Jun 16

    Acquired 76% stake in ARIPL (naval training), 51% in Vector Technics (drone components), and 45.33% in Bhairav Robotics (autonomous ground systems) to diversify capabilities.

  • Counter-drone technology leadership Jun 16

    Launched AI-powered counter-drone system, secured Indian Patent for 60mm Mortar Simulator, and executed largest-ever export order in counter-drone segment. Orders exceeding ₹1,000 crore in drone/anti-drone segments in past fiscal cycle.

Neutral 3
  • Multiple investor meets scheduled Jun 17

    Management attending Defence Conference in Mumbai (Jun 25), investor meet in Hyderabad (Jun 22), London group meeting (Jun 15-16), Citi defence meet (Jun 12), and DAM Capital conference (Jun 11).

  • No promoter share encumbrance Jun 2

    Promoters and Promoter Group confirmed no shares were encumbered during FY26, disclosed under SEBI regulations.

  • ESOP shares transferred Jun 9

    Transferred 2,350 equity shares to employees under ESOP-2021 at ₹500 per share from Employees Welfare Trust; no change to paid-up share capital.

TL;DR: Zen Technologies is well-positioned in India's defence modernization wave with a strong ₹1,336 crore order book, 45% operating margins, and leadership in the fast-growing counter-drone and smart border segments. The $2B Indian drone procurement plan and 6,000 km smart border project provide significant near-term catalysts. Key risks are the elevated PE of 111x, government procurement delays, and order concentration. The trend is improving on order visibility and policy tailwinds, though the stock must grow into its premium valuation.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
96
132
66
100
141
255
242
152
325
158
174
178
178
Expenses
61
64
48
57
91
143
162
108
187
94
109
111
129
Operating Profit
35
69
19
42
50
111
80
44
138
64
65
67
50
OPM %
37%
52%
29%
43%
36%
44%
33%
29%
42%
41%
37%
37%
28%
Other Income
0
3
5
4
5
3
8
22
25
22
26
16
23
Interest
1
0
1
1
1
1
2
3
4
3
2
3
2
Depreciation
2
2
2
3
3
3
4
4
5
6
6
6
6
PBT
33
69
22
44
52
110
82
59
154
76
83
73
64
Tax %
29%
30%
37%
32%
27%
28%
23%
28%
26%
30%
26%
24%
27%
Net Profit
23
48
14
30
38
79
63
43
114
53
62
56
47
EPS in Rs
2.54
5.6
1.82
3.64
4.16
9.14
6.94
4.4
11.19
5.29
6.58
6.07
3.49
Figures in ₹ Crores

Profit & Loss

  Mar 2014Mar 2015Mar 2016Mar 2017Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
46
79
53
62
92
149
55
70
219
440
974
688
Expenses
46
58
48
50
76
87
47
65
146
259
591
443
Operating Profit
1
21
4
11
17
63
7
5
73
181
382
245
OPM %
1%
27%
8%
18%
18%
42%
14%
7%
33%
41%
39%
36%
Other Income
4
3
5
4
3
2
3
5
9
17
58
86
Interest
2
2
2
2
5
3
1
2
4
2
19
10
Depreciation
2
2
4
4
4
5
5
5
6
10
15
24
PBT
0
20
3
9
11
57
4
3
72
186
406
297
Tax %
25%
21%
21%
20%
-19%
-3%
36%
21%
30%
30%
26%
27%
Net Profit
0
16
2
7
13
59
3
3
50
130
299
218
EPS in Rs
0.01
2.04
0.3
0.93
1.73
7.62
0.39
0.25
5.38
15.22
31.04
21.43
Div. Payout %
1103%
17%
33%
16%
17%
5%
26%
40%
4%
7%
6%
5%
Figures in ₹ Crores

Balance Sheet

  Mar 2014Mar 2015Mar 2016Mar 2017Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
8
8
8
8
8
8
8
8
8
8
9
9
Reserves
91
103
105
112
127
183
196
275
308
440
1,692
1,880
Borrowings
18
40
41
11
42
3
2
15
7
6
78
19
Other Liabilities
12
27
14
15
42
20
17
71
151
296
271
253
Total Liabilities
128
177
167
146
218
214
223
369
474
750
2,049
2,160
Fixed Assets
49
47
44
45
63
73
70
67
75
93
208
241
CWIP
1
0
15
17
0
0
0
3
2
11
7
13
Investments
0
0
0
0
8
2
2
2
2
0
4
6
Other Assets
78
130
108
84
147
139
152
297
394
646
1,830
1,900
Total Assets
128
177
167
146
218
214
223
369
474
750
2,049
2,160
Figures in ₹ Crores

Cash Flow

  Mar 2014Mar 2015Mar 2016Mar 2017Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
10
-20
0
0
-49
62
6
-44
116
13
-146
245
Investing
-8
-4
0
0
13
-12
-10
-44
-4
-85
-823
-162
Financing
-7
20
0
0
5
-12
9
88
-22
-3
1,007
-78
Net Cash Flow
-5
-4
0
0
-32
38
5
0
91
-75
37
5
Free Cash Flow
-13
-22
0
0
-54
52
5
-49
103
-16
-179
185
CFO/OP
1,269
-94
0
0
-286
118
118
-921
180
26
-8
136
Figures in ₹ Crores

Ratios

  Mar 2014Mar 2015Mar 2016Mar 2017Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
90
276
56
121
290
114
124
166
142
153
154
119
Inventory Days
295
225
242
237
496
137
609
693
305
523
118
415
Days Payable
63
47
52
92
114
44
132
109
42
99
25
109
Cash Conversion Cycle
322
455
246
265
672
206
601
750
406
577
247
425
Working Capital Days
45
119
-66
187
191
191
535
629
115
158
148
543
ROCE %
2%
16%
3%
8%
—
32%
3%
2%
23%
46%
37%
16%

Shareholding Pattern

As of Mar 2026
Promoters 48.51%
Public 29.80%
DIIs 10.07%
FIIs 5.99%
Others 5.63%
Total 100.00%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023May 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Aug 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
60.19%
60.19%
60.19%
60.19%
60.19%
60.19%
60.19%
60.19%
60.14%
57.45%
57.45%
57.45%
55.07%
55.07%
55.07%
51.26%
51.26%
49.05%
49.05%
49.05%
48.51%
48.51%
48.51%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
4.83%
0.00%
3.84%
3.08%
5.86%
5.72%
8.29%
5.95%
6.03%
5.95%
5.55%
5.99%
DIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.11%
0.11%
0.15%
0.00%
0.21%
0.16%
2.53%
3.32%
3.38%
8.10%
8.05%
8.98%
9.48%
8.76%
7.93%
7.86%
10.07%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
31.72%
31.43%
32.92%
32.94%
32.82%
32.75%
31.82%
31.82%
30.71%
30.99%
32.14%
31.21%
30.69%
31.00%
31.42%
28.30%
28.64%
27.38%
29.41%
29.95%
31.59%
32.02%
29.80%
Others
8.09%
8.38%
6.88%
6.87%
6.99%
7.06%
7.88%
7.89%
9.01%
11.56%
10.19%
6.35%
11.71%
6.77%
7.05%
6.48%
6.33%
6.31%
6.11%
6.21%
6.02%
6.06%
5.63%
No. of Shareholders
34,233
37,320
1,00,477
96,275
1,14,705
1,18,806
1,16,610
1,22,339
1,08,420
1,12,582
1,27,208
1,59,766
1,61,995
1,70,421
2,01,211
2,19,797
2,29,479
2,37,733
2,83,289
3,11,948
3,25,978
3,30,378
3,14,092

Documents

1
Concall - Sep 2019 Sep 2019
2
Concall - Jun 2020 Jun 2020
3
Concall - Aug 2020 Aug 2020
4
Concall - Feb 2021 Feb 2021
5
Concall - May 2021 May 2021

Frequently Asked Questions about Zen Technologies Ltd

What does Zen Technologies Ltd do?
Zen Technologies Limited was incorporated in 1996. The company designs develop and manufacture 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 p...
Where is Zen Technologies Ltd (ZENTEC) listed?
Zen Technologies Ltd is listed on the Indian stock exchanges. It is listed on NSE: ZENTEC and BSE: 533339. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Zen Technologies Ltd belong to?
Zen Technologies Ltd operates in the Aerospace & Defense sector within the Engineering industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Zen Technologies Ltd?
Zen Technologies Ltd has a market capitalisation of approximately ₹16267.61 Cr. Based on this, it is classified as a Mid Cap stock.
What is the PE ratio of Zen Technologies Ltd?
The Price-to-Earnings (PE) ratio of Zen Technologies Ltd is 82.65. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Zen Technologies Ltd?
Over the past 52 weeks, Zen Technologies Ltd has traded between a low of ₹1,223 and a high of ₹2,065. This range helps investors understand the stock's price volatility and recent trading levels.
Does Zen Technologies Ltd pay dividends?
Yes, Zen Technologies Ltd has a dividend yield of 0.11%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Zen Technologies Ltd?
Zen Technologies Ltd has a Return on Equity (ROE) of 15.13%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Zen Technologies Ltd on Tapetide?
On Tapetide, you can view Zen Technologies Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Zen Technologies Limited was incorporated in 1996. The company designs develop and manufacture 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. [1] [2] [3]

Website zen.in
CEO Mr. Ashok Atluri B.Com, PGDACS
Employees 395
Listed 2015-03-30
Face Value ₹ 1
Issued Size 9,02,90,356

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