Zen Technologies shares down 29% from 52-week high - Time to 'buy'?

Shares of aerospace and defence major Zen Technologies have slipped 29% from their 52 week high. The defence sector stock reached a high of Rs 2,268.15 on June 5, 2025. Poor Q4 earnings, correction in defence sector stocks and high market volatility due to Trump tariff issue and the US-Iran conflict hit sentiment around the defence stock. 

However, the multibagger stock has gained 20% in 2026 and risen 428% in three years. The multibagger stock has risen 2122% in five years. 

In the current session, the stock ended on a flat note at Rs 1628. The relative strength index (RSI) of Zen Technologies stands at 55.5, signaling it has neither oversold nor overbought on charts.

Market cap of the firm stood at Rs 14,699 crore. 

The stock fell to a 52 week low of Rs 1224 on January 14, 2026. 

Antique Stock Broking has a buy call on the defence stock with a price target of Rs 1,700. 

"We remain positive on the demand potential in simulators and anti-drone systems (ADS) and expect recent order wins to drive strong profit growth in FY27E. We believe that a few additional large order wins would materially improve revenue visibility for FY28E and allay growth concerns beyond FY27. We reiterate our BUY rating on the stock," said Antique. 

DAM Capital has a target price of Rs 1990 on the Zen Tech stock. 

"The company has demonstrated strong, albeit cyclical, growth with high margins, supported by an asset-light, intellectual property-led business model and a strong balance sheet. Revenue growth remains subject to procedural and bureaucratic delays inherent in government contracts. Additionally, increasing competition from both domestic and global defence players could pressure margins and market share over time," said DAM Capital.  

The brokerage has a BUY rating and a target price of Rs 1,990/share, 40x 
FY27E and FY28E EPS with equal weightage to each. 

However, Elara Capital lower its target price to Rs 1,870 form Rs 2025 post Q4 earnings. 

"We cut our FY27E EPS by 16% and our FY28E EPS by 10% based on lower-than-expected closing orderbook, due to delayed inflows. We lower our TP to Rs 1,870 from Rs 2,025 on 32x (from 35x) March FY28E P/E, lower than private companies’ P/E, given the delay in order inflows in FY26 and overall weak performance for the year, said Elara. 

"We reiterate Buy, as successful demonstration of the products portfolio would drive demand domestically and on the exports front. India’s defence budget jumped by 18% YoY to INR 2.2tn (Union Budget for other equipment rose 62% YoY to Rs 82000 crore in FY27BE), which augurs well for simulators, drones and counter drone systems. We expect an earnings CAGR of 45% during FY26-29E with an average ROE and ROCE of 20% each during FY27-29E. We introduce FY29 estimates," said the brokerage. 

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.