The Union Budget FY25 prioritized defence improvements and listed 346 items for indigenisation. ICICI Securities recommended investing in Solar Industries, Azad Engineering, Zen Technologies, Astra Microwave, and Dynamatic Technologies. The budget saw substantial increases in aircraft and aero engine allocations while maintaining stable funding for other defence areas.

Defence sector may be back in action, ICICI Securities shares 5 stock picks

Zen Technologies Targets 50% Revenue CAGR, Gives Insight Into New Product Mix | Zen Tech Share News

There Is A Lot Of Traction For Orders In Anti-Drone System: Zen Technologies | CNBC TV18

Zen Technologies was locked in an upper circuit of 5% at Rs 1,607.85 after the company’s standalone net profit jumped 57.39% to Rs 74.18 crore in Q1 FY25 as compared to Rs 47.13 crore posted in Q1 FY24.

Zen Tech hits life high on strong Q1 outcome

Zen Technologies Vs Other Defence Stocks: What Is Powering Zen Tech's Share Price?

Zen Technologies consolidated net profit rises 63.11% in the June 2024 quarter

The brokerage sees Zen at a vantage, gaining from market potential and demand across its segments – both strong allies to its high earnings growth trajectory.

Zen Technologies - IP At The Core; ICICI Securities Initiates Coverage With A Buy

Zen Technologies shares jumped 4% on Motilal Oswal’s Rs 1,775 target. Excelling in simulators and counter-drones, Zen features strong margins, backward integration, high RoCE, 40+ indigenous products, 150+ patents, and no import reliance. Revenue, EBITDA, and PAT to grow 63%, 57%, and 56% CAGR respectively. Order book at Rs 1,400 crore with a 125% stock surge.

Multibagger defence stock jumps 4% after Motilal Oswal initiates coverage, sees upside potential of 31%

The stock rose as much as 3.46% in early trade to Rs 1,400 apiece on the NSE.

Zen Technologies May See 31% Upside, Motilal Oswal Says On Initiating ‘Buy’

With a healthy order book of Rs 14 billion and a likely inflow CAGR of 37% over the next three years, the brokerage expects Zen’s revenue/Ebitda/PAT to clock a CAGR of 63%/57%/56% over FY24-27.

Zen Technologies - A Niche Defense Play; Motilal Oswal Initiates Coverage With A Buy

Zen Technologies in Hyderabad launches four new defence products, including anti-drone system and remote-controlled weapon station.

Zen Tech launches 4 new defence products

The creamy layer - amongst the top performing stocks

Performance

Seems to be overvalued vs the market average

Valuation

Strong financials and growth story over the years

Growth

Showing good signs of profitability & efficiency

Profitability

The stock is overpriced but is not in the overbought zone

Current price is more than the intrinsic value

Fundamentals

Good time to consider, stock is not in the overbought zone

Technicals

Entry point

Promoter pledged holding

Unsolicited messages

Default probability

Red flags

Zen Technologies Limited is engaged in the design, development and manufacture of Training Simulators. It offers its products to police and paramilitary forces, armed forces, security forces and government departments.