Zen Tech hits 52-week high on bagging IAF order

Zen Technologies hit an upper circuit of 10% at Rs 153.75 after the company said it secured new order of about Rs 155 crore from Indian Air Force (IAF).

As per the order, Zen Technologies will supply Counter Unmanned Aircraft Systems (CUAS). The order will be carried out in a 12 month time frame.

This is Zen Technologies' first significant order in the anti-drone space, and the company said it remains confident of securing additional orders in the future.

Commenting on the order win, Ashok Atluri, chairman, managing director & CFO commented: "This is a significant step toward making India a drone and counter-drone technology export hub. These orders placed on Indian companies can have a multiplier effect on the Indian equipment manufacturers eco-system because products like anti-drone systems have a high export potential to friendly foreign countries. Anti-drone systems and training solutions are in high demand in many countries."

With the current order win, the company's total order book as on date stands at Rs 402.61 crore. The total order book comprises domestic orders worth Rs 278.16 crore export orders worth Rs 124.45 crore.

As a prudent measure, the company has removed about Rs 64 crore order from its order book on account of delay in documentation from the customer. The company will add back the order in case there is any positive development from the customer.

The scrip was currently frozen at the 52-week high of Rs 153.75 today. It has risen 146.39% from its 52-week low of Rs 62.40 hit on 9 September 2020.

On a year-to-date (YTD) basis, the stock has added 65.96% while the benchmark Sensex has gained 21.29% during the same period.

Zen Technologies designs develop and manufacture combat training solutions for the training of defense and security forces. It is actively involved in the indigenization of technologies, which are beneficial to Indian armed forces, state police forces, and paramilitary forces.

The company reported a consolidated net loss of Rs 1.14 crore in Q1 FY22 as against a net loss of Rs 1.34 crore in Q1 FY21. Net sales during the quarter increased by 139% YoY to Rs 9.96 crore.

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