Shares of this defence company have zoomed 76% in 9 days

Zen Technologies was locked in the 20% upper cicuit at Rs 139.80 on the BSE on Thursday

Shares of Zen Technologies were locked in the 20 per cent upper circuit band at Rs 139.80 on the BSE on Thursday, with more than 18 per cent equity of the company having changed hands. The stock of the defence firm has surged 44 per cent in the past two trading days after the company announced that it has secured orders worth Rs 211 crore during April-June (Q1FY22) quarter.

"Order book as on September 01, 2021, stands at Rs 402.6 crore as against an order book of Rs 191.6 crore on 30th June 2021," Zen Technologies said in exchange filing on Wednesday.

In the past three weeks, the stock has zoomed 76 per cent from a level of Rs 79.40 seen on August 20, 2021. It is trading close to its all-time high level of Rs 158, touched on January 1, 2018.

Trading volumes on the counter jumped multi-fold, with a combined 14.86 million equity shares, representing 18.69 per cent of the total equity, changed hands on the NSE and BSE till 11:32 am. There were a combined pending buy orders for 1.3 million shares, exchanges data show.

Zen Technologies is engaged in manufacturing land-based military training simulators, driving simulators, live range equipment and anti-drone systems. The company is engaged in indigenous design, development and manufacture of sensors and simulators technology based defence training systems and has relentlessly been providing Defence Training Solutions and seamless services to Ministry of Defence (Armed Forces), Security Forces Police, Para-military forces.

Anti-drone systems, drones, and training solutions will continue to be the core business of Zen Technologies and the company has all the simulators required for the legacy equipment used by the Indian Army, it said.

According to experts, India’s defence industry is well-positioned to grow leaps and bounds at the backing of the aggressive policies that favour indigenous sourcing. The Ministry of Defence (MoD), through its various schemes, has boosted this process and indigenisation is taking place at a component, system, and subsystem level.

Defence exports in the country witnessed strong growth in the last two years. India targets to export military equipment worth US$ 5 billion (Rs 35,000 crore) in the next five years, Zen Technologies said in the financial year 2020-21 (FY21) annual report.

"The company expects its exports to accelerate hereon, as the efforts made in the past few years will finally render its effect. Apart from this, Zen Technologies is driven to make further progress by focusing on large export opportunities within the Middle East, CIS, and Africa. The company is dedicating a core team to pursue business opportunities in the USA and other friendly countries. It also looks to enhance the AMC revenue stream, which is non-cyclical," the company said.