Zen Technologies shares jump 15% to hit one-year high today; here's why

Shares of Zen Technologies Ltd surged 14.95 per cent to hit their one-year high price of Rs 488.40 in Tuesday's trade. The stock rose sharply after the company announced that it has secured a significant order win in the export markets, valued at around Rs 340 crore. Zen Tech offers military training and anti-drone solutions. Zen also hinted that it "foresees more orders in near future."

Prior to this, the company received a Rs 160 crore order from the government last week (July 7). The contract was under the Centre's Indigenous Design and Development (IDDM) initiative, requiring Indian IP and over 60 per cent indigenous content, the company said. With three decades of IP-based Design & Development (D&D) experience, the company stands poised to benefit from such initiatives, Zen Tech mentioned.

In June, it bagged an order worth Rs 202 crore from the Ministry of Defence.

The counter has been a multibagger this calendar, rallying 158 per cent year-to-date (YTD) and 178 per cent in the past one year.

On technical setup, the counter's 14-day relative strength index (RSI) came at 61.90. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-earnings (P/E) ratio of 94.88. It has a price-to-book (P/B) value of 11.19. The scrip has a one-year beta of 0.81, indicating low volatility.

Around 2.79 lakh shares changed hands today on BSE, which was way more than the two-week average volume of 84,000 shares. Turnover on the counter stood at Rs 12.88 crore, commanding a market capitalisation (m-cap) of Rs 3,802.96 crore. There were 35,730 sell orders against buy orders of 21,556 shares.

Zen Tech, as per its website, specialises in manufacturing land-based military training simulators, driving simulators, live range equipment and anti-drone systems. It has a dedicated Research and Development (R&D) facility in Hyderabad, recognised by the Ministry of Science and Technology. The company has filed for over 110 patents and successfully shipped more than 1,000 training systems worldwide.

Meanwhile, Indian equity benchmarks rose in early deals today, led by gains across all sectors. Mid- and small-cap shares were positive as Nifty Midcap 100 moved 0.98 per cent higher and small-cap soared 1.15 per cent.

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