From ₹90 to ₹911.40: Zen Tech achieves ten-bagger growth in three years. Is it worth your investment?

In a spectacular display of growth, Zen Technologies, the drone stock sensation, has surged to new heights, hitting its 52-week high of ₹911.40 on the NSE yesterday.

new 52-week high

Zen Technologies Limited, the small-cap multi-bagger stock, has rewritten the investment playbook with its astonishing journey from ₹30 per share in March 2020 to ₹911.40 per share yesterday. Let’s understand the reasons for this meteoric rise in its share price. 

Highlights -

  • Zen Tech's drone stock surged 10x in 3 years, hitting ₹911.40 peak

  • Stellar Q1 results: Revenue up 298%, PAT up 474% YoY

  • Zen Tech secured major orders, aligning with the indigenous design focus

  • Future prospects are strong with global drone export policies and PLI incentives

The trend of Zen Tech's share price

The drone maker's shares have steadfastly ridden the uptrend over the past three years.

Starting at ₹30 in March 2020, the stock's value surged to ₹90 by August 2020, despite COVID, which had already captivated investors’ attention. Fast forward to the present, and Zen Tech's stock has achieved a new pinnacle. On 17 August 2023, the stock hit a staggering ₹911.40, marking an impressive 52-week high. The past month alone saw an over 45% surge in Zen Tech's stock price.

A look into Zen Tech's financial snapshot

Zen Tech's Q1 results for the fiscal year 2023–24 were nothing short of stellar.

  • The company's revenue surged 298%, reaching ₹132.45 crores, compared to ₹33.23 crores in the same period last year 

  • PAT soared, with a 474% rise to approximately ₹47.13 crores in the quarter ended June of FY 23, compared to ₹8 crores in the previous year's corresponding quarter

  • The company’s EPS was ₹5.81 in the current quarter, a substantial increase from the ₹1.03 recorded in the same period last year.

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Order wins

The company's recent consecutive order wins have catapulted Zen Tech's market presence.

A substantial export order of around ₹340 crores was secured on 11 July 2023, closely following a ₹160 crores order from the Government of India on 6 July. Zen Tech's adherence to the Indigenous Design and Development (IDDM) plan, which prioritises domestic content, further solidified its industry standing.

Future growth prospects

Zen Tech's growth trajectory shows no signs of slowing down. The company's active participation in defence events and the Indian government's policy liberalisation for global drone exports position it for further significant order wins. The disbursement of ₹30 crores as a Production-Linked Incentive (PLI) for drones and components adds a new dimension to its growth story.

About Zen Technologies

Founded in 1993, Zen Technologies is a pioneer in military training and anti-drone solutions. Its journey begins with being the first to commercialise PC-based visual simulation technology to becoming a leader in Firearms, Tanks, Driving, Mining, and UAV simulators, underscoring its innovation and indigenisation.

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Disclaimer: This article is intended for general information purposes only and should not be construed as insurance or investment or tax or legal advice. You should separately obtain independent advice when making decisions in these areas.


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