Zen Technologies shares zoom after acquiring 45% stake in Bhairav Robotics

Shares of Zen Technologies extended gains to their fifth day. They, however, have fallen 47 per cent so far this year

Share of Zen Technologies advanced 4.5 per cent on Wednesday after it acquired 45.3 per cent stake in of Bhairav Robotics Private Limited, making it an associate company. 

 

Zen Technologies’ stock rose as much as 4.51 per cent during the day to Rs 1,308.75 per share, the biggest intraday gain since March 7 this year. The stock pared gains to trade 2.8 per cent higher at Rs 1,287.4 apiece, compared to a 0.15 per cent advance in Nifty 50 as of 9:48 AM. 

 

Shares of the company extended gains to their fifth day while they have fallen 47 per cent so far this year, compared to a 3.25 per cent fall in the benchmark Nifty 50. Zen Technologies has a total market capitalisation of Rs 11,653.3 crore.

 

The company informed the exchanges that it has completed the investment and acquired 45.33 per cent of the total paid up share capital of the Bhairav Robotics. Post this, Bhairav will become an associate company of Zen Technologies, it said in the statement. 

 

 

  Zen Technologies is engaged in the design development and manufacture of training simulators for police anti drone systems and operations for paramilitary forces armed forces security forces government departments like transport mining infrastructure and civilian market. The Zen group is the largest supplier of simulation training equipment and anti-drone systems in India. 

 

The company benefited significantly after the roll out of the Defence Production and Export Promotion Policy (DPEPP) and the framework rolled out by the Ministry of Defence (MOD) in September 2021, leading to increased utilisation of simulators for training the armed forces. 

 

Meanwhile, in Q3FY25, Zen Technologies reported a 22 per cent year-on-year (Y-o-Y) rise in standalone profit after tax (PAT) at Rs 38.62 crore as against Rs 31.67 crore in Q3FY24. On a sequential basis, the company's net profit declined 40.8 per cent from Rs 65.25 crore in Q2FY25. The company's earnings before interest, tax, depreciation and amortisation (Ebitda) margin contracted to 35.90 per cent in Q3FY25 from 47.34 per cent in Q3FY24.

 

Revenue from operations, meanwhile, grew 44 per cent to Rs 141.52 crore from Rs 98.08 crore in the year-ago quarter. The management said the company is on track to meet stated guidance of Rs 900 crore revenues for FY25.