Zen Technologies shares turn oversold on charts as brokerages cut price targets
Zen Technologies shares hit lower circuit of 10% at Rs 971.50 on Tuesday against the previous close of Rs 1,079.40 on BSE.
- Feb 19, 2025,
- Updated Feb 19, 2025 9:26 AM IST
Zen Technologies Ltd shares have lost 30% in the last two sessions post Q3 earnings. Amid the ongoing correction, Zen Technologies shares have lost 60% in 2025. ICICI Securities said Q3FY25 EBITDA of Rs 443 mn was broadly in line with its FY25 guidance but challenges persist on order inflow front. The brokerage reduced its price target based on the uncertainty lingering over order inflow but maintained it buy call.
"We have reduced target multiple to 35x from 45x and our TP works out to Rs 1,970 (earlier: Rs 2,535) based on FY26/27E EPS, 50% each. Maintain BUY," said ICICI Securities.
Zen Technologies shares hit lower circuit of 10% at Rs 971.50 on Tuesday against the previous close of Rs 1,079.40 on BSE. The stock closed at the same level. On Monday, the stock hit a lower circuit of 20% at Rs 1079.35. In the previous session, market cap of the firm slipped to Rs 8,758 crore on BSE.
The multibagger stock has gained 312% in two years and risen 1,669% in five years.
Nuvama said Q3 earnings were muted. The defence firm reported a sluggish Q3FY25 order inflow for a third quarter in a row due to delay in order finalisations by ministry of defence. The brokerage reduced its price target to Rs 1,650.
"We are adjusting FY25E/26E/27E EPS by 3%/(14%)/(14%)—more conservatively than guidance factoring in a higher OI spill-over and protracted execution. Yet, we find a 38%/33% CAGR in revenue/EPS (FY25–27E) with ~20% RoE, assuming ~34% OPMs. Retain ‘BUY’ with a revised TP of INR1,650 (earlier INR 2,200) based on 35x FY27E EPS," said Nuvama.
Revenue zoomed 44.3% YoY, but fell 41.4% QoQ to Rs 1.42 bn in Q3FY25 due to an Rs 600mn shipment delay (it does not derail the FY25 guidance of Rs 9bn), added Nuvama.
The defence firm reported a 30% rise in net profit for the quarter ended December 2024.
Motilal Oswal reduced its estimates by 4-22 per cent for FY25-27. This brokerage revised its target multiple for Zen Tech downwards while maintaining 'Buy' with a revised target of Rs 1,600 based on 30 times March 2027 earnings.
"Beyond FY26, we expect overall ordering to improve from large-sized simulator orders, recent acquisitions, and MoUs, as the company’s overall capabilities are being enhanced across simulators, anti-drone, and other new areas," MOFSL said.
That said, due to delays in the finalisation of tenders, execution may remain impacted in the near to medium term, MOFSL said
The stock hit a 52 week low of Rs 800 on February 21, 2024 and touched a 52 week high of Rs 2627.95 on December 24, 2024. In terms of technicals, the relative strength index (RSI) of Zen Technologies stands at 16.2, signaling it's strongly oversold on charts. Zen Technologies stock has a one-year beta of 1.1, indicating high volatility during the period. Zen Technologies shares are trading lower than the 5 day, 10 day, 20 day, 30 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.
Zen Technologies Ltd shares have lost 30% in the last two sessions post Q3 earnings. Amid the ongoing correction, Zen Technologies shares have lost 60% in 2025. ICICI Securities said Q3FY25 EBITDA of Rs 443 mn was broadly in line with its FY25 guidance but challenges persist on order inflow front. The brokerage reduced its price target based on the uncertainty lingering over order inflow but maintained it buy call.
"We have reduced target multiple to 35x from 45x and our TP works out to Rs 1,970 (earlier: Rs 2,535) based on FY26/27E EPS, 50% each. Maintain BUY," said ICICI Securities.
Zen Technologies shares hit lower circuit of 10% at Rs 971.50 on Tuesday against the previous close of Rs 1,079.40 on BSE. The stock closed at the same level. On Monday, the stock hit a lower circuit of 20% at Rs 1079.35. In the previous session, market cap of the firm slipped to Rs 8,758 crore on BSE.
The multibagger stock has gained 312% in two years and risen 1,669% in five years.
Nuvama said Q3 earnings were muted. The defence firm reported a sluggish Q3FY25 order inflow for a third quarter in a row due to delay in order finalisations by ministry of defence. The brokerage reduced its price target to Rs 1,650.
"We are adjusting FY25E/26E/27E EPS by 3%/(14%)/(14%)—more conservatively than guidance factoring in a higher OI spill-over and protracted execution. Yet, we find a 38%/33% CAGR in revenue/EPS (FY25–27E) with ~20% RoE, assuming ~34% OPMs. Retain ‘BUY’ with a revised TP of INR1,650 (earlier INR 2,200) based on 35x FY27E EPS," said Nuvama.
Revenue zoomed 44.3% YoY, but fell 41.4% QoQ to Rs 1.42 bn in Q3FY25 due to an Rs 600mn shipment delay (it does not derail the FY25 guidance of Rs 9bn), added Nuvama.
The defence firm reported a 30% rise in net profit for the quarter ended December 2024.
Motilal Oswal reduced its estimates by 4-22 per cent for FY25-27. This brokerage revised its target multiple for Zen Tech downwards while maintaining 'Buy' with a revised target of Rs 1,600 based on 30 times March 2027 earnings.
"Beyond FY26, we expect overall ordering to improve from large-sized simulator orders, recent acquisitions, and MoUs, as the company’s overall capabilities are being enhanced across simulators, anti-drone, and other new areas," MOFSL said.
That said, due to delays in the finalisation of tenders, execution may remain impacted in the near to medium term, MOFSL said
The stock hit a 52 week low of Rs 800 on February 21, 2024 and touched a 52 week high of Rs 2627.95 on December 24, 2024. In terms of technicals, the relative strength index (RSI) of Zen Technologies stands at 16.2, signaling it's strongly oversold on charts. Zen Technologies stock has a one-year beta of 1.1, indicating high volatility during the period. Zen Technologies shares are trading lower than the 5 day, 10 day, 20 day, 30 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.