Zen Technologies hits 52-week high, zooms 30% in three days

Defence exports in the country witnessed strong growth in the last two years and India targets to export military equipment worth US $5 billion (Rs 35,000 crore) in the next five years

Shares of Zen Technologies rallied 12 per cent to hit a 52-week high of Rs 107.75 on the BSE in intra-day trade on Friday on the back of heavy volumes. The stock of the defence company has zoomed 30 per cent in the past three trading days.

At 09:41 am, it was trading 9 per cent higher at Rs 104.70, as compared to a 0.38 per cent decline in the S&P BSE Sensex. The trading volumes on the counter jumped over seven-fold, with a combined 0.91 per cent of the total equity having changed hands on the NSE and BSE so far.

Zen Technologies is engaged in manufacturing land-based military training simulators, driving simulators, live range equipment and anti-drone systems. It also has its own training platform to provide a realistic battle experience by integrating its entire range of product offerings.

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.

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.