Defence stock with low debt is down 49% from record high; time to buy?
The multibagger stock was trading on a flat note at Rs 1343 today. It hit a low of Rs 1336 on BSE. Market cap of the firm fell to Rs 12,133 crore .
- Feb 3, 2026,
- Updated Feb 3, 2026 3:31 PM IST
Shares of Zen Technologies have slipped 49% from their record high reached on December 24, 2024. The defence sector stock hit a record high of Rs 2,627 on December 24, 2024. In the current session, the stock was trading on a flat note at Rs 1343 on BSE. It hit a low of Rs 1336 on BSE. Market cap of the firm fell to Rs 12,133 crore on BSE.
The stock fell to a 52-week low of Rs 945.65 on February 19,2025.
The defence firm has low debt and clocked a high revenue CAGR of 142% and 155% in two years and three years, respectively. The firm logged its highest profit (Rs 280.2 crore) and revenue (Rs 1,032 crore) in the last fiscal. The relative strength index (RSI) of Zen Technologies stands at 51.1, signaling it is neither oversold nor overbought on charts.
The multibagger stock has lost 18% in a year and fallen 12% in six months. On the other hand, the defence stock has gained 576% in three years and zoomed 1448% in five years.
The stock has a price target of Rs 1,400 with a neutral rating.
"Zen Technologies is expecting inflows to remain strong in 4QFY26 too, and hence we expect revenue execution to scale up from FY27. To factor in 9MFY26 performance, we cut our estimates by 4%/9%/10% for FY26/27/28E and roll forward our target price to March 28. Focus would now be on both execution and order inflow ramp-up for Zen Technologies going forward," said Motilal Oswal.
The brokerage lists down risks for its assumptions for the stock.
"Any slowdown in procurement from the defence industry, especially for simulators, can expose the company to the risk of reduced order inflows and hinder its growth. Zen Technologies is also exposed to foreign currency risks for its export revenue," added the brokerage.
Choice Broking has a price target of Rs 2,150, an upside of 60% from the previous close.
The brokerage is of the view that EU-India trade agreement materially improves Zen’s access to Europe defence markets, supporting the management’s ambition to scale exports to 20–30% of revenue by FY28E.
Zen Technologies is strategically positioned for a step-change in its earnings quality.
"Coupled with a net cash balance of Rs 1,100 crore to fund selective, IP-driven acquisitions, Zen is evolving into a diversified, resilient defence franchise with strong global growth potential," said Choice Broking.
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.
Shares of Zen Technologies have slipped 49% from their record high reached on December 24, 2024. The defence sector stock hit a record high of Rs 2,627 on December 24, 2024. In the current session, the stock was trading on a flat note at Rs 1343 on BSE. It hit a low of Rs 1336 on BSE. Market cap of the firm fell to Rs 12,133 crore on BSE.
The stock fell to a 52-week low of Rs 945.65 on February 19,2025.
The defence firm has low debt and clocked a high revenue CAGR of 142% and 155% in two years and three years, respectively. The firm logged its highest profit (Rs 280.2 crore) and revenue (Rs 1,032 crore) in the last fiscal. The relative strength index (RSI) of Zen Technologies stands at 51.1, signaling it is neither oversold nor overbought on charts.
The multibagger stock has lost 18% in a year and fallen 12% in six months. On the other hand, the defence stock has gained 576% in three years and zoomed 1448% in five years.
The stock has a price target of Rs 1,400 with a neutral rating.
"Zen Technologies is expecting inflows to remain strong in 4QFY26 too, and hence we expect revenue execution to scale up from FY27. To factor in 9MFY26 performance, we cut our estimates by 4%/9%/10% for FY26/27/28E and roll forward our target price to March 28. Focus would now be on both execution and order inflow ramp-up for Zen Technologies going forward," said Motilal Oswal.
The brokerage lists down risks for its assumptions for the stock.
"Any slowdown in procurement from the defence industry, especially for simulators, can expose the company to the risk of reduced order inflows and hinder its growth. Zen Technologies is also exposed to foreign currency risks for its export revenue," added the brokerage.
Choice Broking has a price target of Rs 2,150, an upside of 60% from the previous close.
The brokerage is of the view that EU-India trade agreement materially improves Zen’s access to Europe defence markets, supporting the management’s ambition to scale exports to 20–30% of revenue by FY28E.
Zen Technologies is strategically positioned for a step-change in its earnings quality.
"Coupled with a net cash balance of Rs 1,100 crore to fund selective, IP-driven acquisitions, Zen is evolving into a diversified, resilient defence franchise with strong global growth potential," said Choice Broking.
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.