Zen Technologies slips into bear grip, down 20% in 5 days; what's next?
On Wednesday, the stock hit a low of Rs 1,523.55 apiece today, slipping into the bear grip. This is amid a broader weakness, with the Nifty Defence index declining 5.27 per cent in the past five sessions.
- Jul 30, 2025,
- Updated Jul 30, 2025 10:10 AM IST
Zen Technologies Ltd on Wednesday hit its 5 per cent lower circuit limit for another session, taking its five-day losses past 20 per cent, thanks to disappointing Q1 results and a broader selloff in defence pocket of late. Stock analysts said Zen Tech's Q1 missed estimates on revenue and profit, as execution got hampered by design changes in an existing project and lower-than-expected order inflows. The lower revenue visibility led a few brokerages cut their targets on the stock. Add to that is the broader weakness in the defence pack, with the Nifty Defence index declining 5.27 per cent in the past five sessions.
On Wednesday, the stock hit a low of Rs 1,523.55 apiece today, down 20 per cent from July 23's high of Rs 1,907.90, slipping into the bear grip.
MOFSL said the defence company expects inflows to start ramping up from 2QFY26, thereby supporting execution. But to bake in lower inflows and execution in 1QFY26, the brokerage has for now cut its estimates for FY26 and FY27 and revised its target on Zen tech to Rs 1,650 from Rs 1,850 earlier.
Zen Tech's Q1FY26 numbers were slightly weaker, mainly due to execution delays on account of change in customer’s specification, said ICICI Securities. This brokerage has downgraded the stock to 'Hold' from 'Buy', with a revised target price of Rs 1,700.
"Downgrade to ‘HOLD’ as we find an approaching earnings trough with a recovery likely only from H2FY27E (if and when ordering picks up). We are cutting FY26E/27E EPS by 8 per cent/19 per cent and target PE to 40x (earlier 45x) with rollover to Sep-27E for a target of Rs 1,800 (earlier Rs 2,170)," Nuvama said.
Nuvama said Zen Tech is a prominent second and third-order beneficiary of India’s defence capital outlay with focus on in-house design/development of simulators and growing into new-age segments such as drones, anti-drone systems, etc.
"We believe timely ordering by MoD is one of the key asks along with meeting its 50 per cent revenue CAGR, 35 per cent OPM and 25 per cent PAT margin guidance over the next two–three years," it said," it said.
Zen Technologies Ltd on Wednesday hit its 5 per cent lower circuit limit for another session, taking its five-day losses past 20 per cent, thanks to disappointing Q1 results and a broader selloff in defence pocket of late. Stock analysts said Zen Tech's Q1 missed estimates on revenue and profit, as execution got hampered by design changes in an existing project and lower-than-expected order inflows. The lower revenue visibility led a few brokerages cut their targets on the stock. Add to that is the broader weakness in the defence pack, with the Nifty Defence index declining 5.27 per cent in the past five sessions.
On Wednesday, the stock hit a low of Rs 1,523.55 apiece today, down 20 per cent from July 23's high of Rs 1,907.90, slipping into the bear grip.
MOFSL said the defence company expects inflows to start ramping up from 2QFY26, thereby supporting execution. But to bake in lower inflows and execution in 1QFY26, the brokerage has for now cut its estimates for FY26 and FY27 and revised its target on Zen tech to Rs 1,650 from Rs 1,850 earlier.
Zen Tech's Q1FY26 numbers were slightly weaker, mainly due to execution delays on account of change in customer’s specification, said ICICI Securities. This brokerage has downgraded the stock to 'Hold' from 'Buy', with a revised target price of Rs 1,700.
"Downgrade to ‘HOLD’ as we find an approaching earnings trough with a recovery likely only from H2FY27E (if and when ordering picks up). We are cutting FY26E/27E EPS by 8 per cent/19 per cent and target PE to 40x (earlier 45x) with rollover to Sep-27E for a target of Rs 1,800 (earlier Rs 2,170)," Nuvama said.
Nuvama said Zen Tech is a prominent second and third-order beneficiary of India’s defence capital outlay with focus on in-house design/development of simulators and growing into new-age segments such as drones, anti-drone systems, etc.
"We believe timely ordering by MoD is one of the key asks along with meeting its 50 per cent revenue CAGR, 35 per cent OPM and 25 per cent PAT margin guidance over the next two–three years," it said," it said.