'Operation Sindoor' stock under bear attack, can it recover after Q1 earnings miss?
Operation Sindoor stock: The defence stock, which closed at Rs 1,900 on July 23, 2025 fell to a low of Rs 1,688.10 in the current session, slipping 11% in four sessions.
- Jul 28, 2025,
- Updated Jul 28, 2025 2:16 PM IST
Shares of Zen Technologies are down for the fourth straight session today as investors book profit amid a correction in the broader market. The Q1 earnings miss added more to the negative sentiment on the Zen Technologies stock counter. Zen Technologies stock, which closed at Rs 1,900 on July 23, 2025 fell to a low of Rs 1,688.10 in the current session, slipping 11% in four sessions.
Of this, the stock slipped 5% today after the firm reported its Q1 earnings on July 26.
In fact, the stock was stuck in the lower circuit of 5% through the session today. Market cap of the firm fell to Rs 15,241 crore.
In mid May this year, the firm said its anti-drone systems were used in Operation Sindoor against terror camps in Pakistan and Pakistan-occupied Kashmir (PoK)
Earnings of the defence firm came below estimates as net profit fell 38% to Rs 47.75 crore in Q1 against a net profit of Rs 76.81 crore in the corresponding quarter of the previous fiscal. Revenue fell 37.9% year-on-year in Q1 to Rs 158.22 crore. Operating income or earnings before interest, taxes, depreciation, and amortisation, slipped 42% year-on-year to Rs 64.70 crore. The EBITDA margin contracted 208 basis points to 40.9%.
Analysts are mostly bearish on the prospects of the defence stock. Here's what they said.
Jigar S Patel from Anand Rathi said, "Support will be at Rs 1,650 and resistance at Rs 1,775. A decisive move above the Rs 1,775 level may trigger a further upside of Rs 1,800. The expected trading range will be between Rs 1,650 and Rs 1,800 in the short-term."
Kunal Kamble, Sr. Technical Research Analyst at Bonanza said, "After delivering an impressive rally of approximately 138%, Zen Tech is currently undergoing profit booking, having corrected nearly 25% from its recent highs. The stock is now trading near its 0.618 Fibonacci retracement level, placed around Rs 1629.85, which is often considered a key support in technical analysis. However, the declining volume during the correction phase suggests the ongoing downmove is driven by profit-taking rather than fresh short buildup. The stock has also closed below its key moving averages (EMAs), signaling a shift in trend from bullish to bearish. Given this shift in sentiment and the technical structure, no fresh long positions are advised at current levels. It's prudent to exit existing positions unless the stock reclaims its key EMAs with strong volume confirmation."
Mandar Bhojane, Senior Technical & Derivative Analyst, Choice Broking said, "The stock has broken both its daily range and a crucial rising trendline, signaling potential bearish momentum. If the price remains below the Rs 1,560 level, Zentech could see further correction towards the Rs 1,400 and Rs 1,350 support zones. Conversely, immediate resistance is located at Rs 1,820; a decisive move above this level could trigger fresh buying interest, with short-term targets at Rs 1,900 and Rs 2,100. Given these technical conditions, a wait-and-watch strategy is advisable. Fresh buying should only be considered if there is a clear reversal signal, ideally near the 200 EMA, which is close to the Rs 1,660 level. Until such confirmation appears, cautious investors may prefer to monitor price action for buying opportunities on dips, targeting higher levels only on signs of sustained recovery."
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 are down for the fourth straight session today as investors book profit amid a correction in the broader market. The Q1 earnings miss added more to the negative sentiment on the Zen Technologies stock counter. Zen Technologies stock, which closed at Rs 1,900 on July 23, 2025 fell to a low of Rs 1,688.10 in the current session, slipping 11% in four sessions.
Of this, the stock slipped 5% today after the firm reported its Q1 earnings on July 26.
In fact, the stock was stuck in the lower circuit of 5% through the session today. Market cap of the firm fell to Rs 15,241 crore.
In mid May this year, the firm said its anti-drone systems were used in Operation Sindoor against terror camps in Pakistan and Pakistan-occupied Kashmir (PoK)
Earnings of the defence firm came below estimates as net profit fell 38% to Rs 47.75 crore in Q1 against a net profit of Rs 76.81 crore in the corresponding quarter of the previous fiscal. Revenue fell 37.9% year-on-year in Q1 to Rs 158.22 crore. Operating income or earnings before interest, taxes, depreciation, and amortisation, slipped 42% year-on-year to Rs 64.70 crore. The EBITDA margin contracted 208 basis points to 40.9%.
Analysts are mostly bearish on the prospects of the defence stock. Here's what they said.
Jigar S Patel from Anand Rathi said, "Support will be at Rs 1,650 and resistance at Rs 1,775. A decisive move above the Rs 1,775 level may trigger a further upside of Rs 1,800. The expected trading range will be between Rs 1,650 and Rs 1,800 in the short-term."
Kunal Kamble, Sr. Technical Research Analyst at Bonanza said, "After delivering an impressive rally of approximately 138%, Zen Tech is currently undergoing profit booking, having corrected nearly 25% from its recent highs. The stock is now trading near its 0.618 Fibonacci retracement level, placed around Rs 1629.85, which is often considered a key support in technical analysis. However, the declining volume during the correction phase suggests the ongoing downmove is driven by profit-taking rather than fresh short buildup. The stock has also closed below its key moving averages (EMAs), signaling a shift in trend from bullish to bearish. Given this shift in sentiment and the technical structure, no fresh long positions are advised at current levels. It's prudent to exit existing positions unless the stock reclaims its key EMAs with strong volume confirmation."
Mandar Bhojane, Senior Technical & Derivative Analyst, Choice Broking said, "The stock has broken both its daily range and a crucial rising trendline, signaling potential bearish momentum. If the price remains below the Rs 1,560 level, Zentech could see further correction towards the Rs 1,400 and Rs 1,350 support zones. Conversely, immediate resistance is located at Rs 1,820; a decisive move above this level could trigger fresh buying interest, with short-term targets at Rs 1,900 and Rs 2,100. Given these technical conditions, a wait-and-watch strategy is advisable. Fresh buying should only be considered if there is a clear reversal signal, ideally near the 200 EMA, which is close to the Rs 1,660 level. Until such confirmation appears, cautious investors may prefer to monitor price action for buying opportunities on dips, targeting higher levels only on signs of sustained recovery."
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.