Zen Technologies shares hit upper circuit: Two factors behind the rally today 

Shares of Zen Technologies were stuck in the upper circuit today after the defence firm reported its Q4 and fiscal earnings. The company's statement that its anti-drone systems were used in Operation Sindoor against terror camps in Pakistan and Pakistan-occupied Kashmir (PoK) also made investors positive on the defence counter. The company expects more orders from the armed forces.

Zen Technologies stock hit an upper circuit of 5% at Rs 1884.85 against the previous close of Rs 1794.75 on BSE.

Market cap of the firm rose to Rs 17,014 crore on BSE. The multibagger stock has gained 460.60% in two years and risen 4581% in five years.

The stock hit a 52 week low of Rs 893.80 on June 5, 2024 and touched a 52 week high of Rs 2627.95 on December 24, 2024. In terms of technicals, the relative strength index (RSI) of Zen Technologies stands at 66.7, signaling it's neither oversold nor overbought on charts. Zen Technologies stock has a one-year beta of 1.2, indicating high volatility during the period. Zen Technologies shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day and 200 day moving averages.     

In Q4, the firm reported a consolidated net profit of Rs 101 crore, rising 189% from Rs 34.94 crore in the previous year. Revenue from operations climbed 129.8% to Rs 324.97 crore compared to Rs 141.39 crore a year earlier.

Earnings before interest, tax, depreciation, and amortization (EBITDA) rose to Rs 162.74 crore in Q4 against Rs 53.08 crore last year, leading to EBITDA margins of 50.08%, compared to 37.54% in the prior year.

The company’s board also recommended a final dividend of 200% for the financial year ending March 31, 2025, translating to Rs 2 per equity share of Rs 1 each.

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.