Multibagger defence stock rises 4% following 2nd MoD order in 10 days; key details

The sharp uptick in the counter followed a significant announcement by the defence technology firm regarding a fresh contract win from the government, marking its second major order from the Ministry of Defence (MoD) in the last 10 days.

Shares of Zen Technologies gained as much as 3.8 per cent to touch a day’s high of Rs 1427.95 on the BSE in Friday’s trade, climbing against its previous close of Rs 1375.10 apiece.

In an exchange filing dated December 4, after market hours, Zen Technologies disclosed that it has secured orders aggregating to Rs 120 crore from the MoD. The mandate covers the delivery of a Comprehensive Training Node (CTN), comprising an integrated suite of training simulators and associated equipment. The company said the domestic contract is scheduled for completion within a year.

This win comes on the heels of another significant development earlier on November 25, when the defence player announced securing a contract worth Rs 108 crore from the MoD for tank crew gunnery training simulators. 

The stock has emerged as a multibagger over a five-year period, delivering a staggering 1,683 per cent return to its shareholders. However, despite the long-term gains, the technical indicators suggest the stock is currently navigating some resistance. According to Trendlyne data, the stock is trading below its 50-day Simple Moving Average (SMA) of Rs 1,409 and its 200-day SMA of Rs 1,540.4. The Relative Strength Index (RSI) stands at 44.5, while the Money Flow Index (MFI) is at 54, indicating that both momentum indicators are currently in the mid-range.