This firm's anti-drone systems irked Pakistan, now multibagger stock is up 60% in a month

Shares of Zen Technologies have surged 60% in the last one month and more than doubled in three months. The rally in the defence counter comes on the back of a surge in the defence stocks amid a four-day India-Pakistan war last month. The success of Indian armed forces during the brief fight turned sentiment positive towards stocks in the defence sector. Additionally, Q4 earnings of the defence firm on May 18 gave bulls an upper hand around the defence stock in a month. 

The company while disclosing the role of its anti drone systems in Operation Sindoor said it expects more orders for these systems from Indian armed forces. 

The multibagger defence stock has gained 459% in two years and risen 1,031% in three years. Amid the current rally, the relative strength index (RSI) of Zen Technologies stands at 84.8, signaling it is overbought on charts.

Meanwhile, Zen Technologies stock was trading 1.47% lower at Rs 2197.05 on Thursday against the previous close of Rs 2229.80 on BSE. Market cap of the firm slipped to Rs 19,863 crore on BSE. 

Shitij Gandhi, Senior Research Analyst (Technicals), SMC Global Securities said, "Zen Technologies has seen a significant bullish rally, surging approximately 50% from the Rs 1,400 level, driven by sustained buying interest. From a technical perspective, the stock is currently trading in overbought territory and is approaching a key resistance level at Rs 2,300. However, given the prevailing bullish momentum, further upside potential remains, with a likely upward move toward the Rs 2,500 level. Strong support is expected around the Rs 2,000 mark, providing a cushion against any corrective declines."

AR Ramachandran, SEBI registered independent analyst says, "Zen Technologies is bearish on the Daily charts & also overbought with strong resistance at Rs 2268. Investors should be booking profits as a Daily close below support of Rs 2121 could  lead to a target of Rs 1820 in the near term."

The stock fell to a 52 week low of Rs 893.80 on June 5, 2024 and touched a 52 week high of Rs 2627.95 on December 24, 2024.

Zen Technologies stock has a one-year beta of 1.1, indicating high volatility during the period. Zen Technologies shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day and 200 day moving averages.

Zen Technologies reported a consolidated net profit of Rs 101 crore, climbing 189% from Rs 34.94 crore in the previous year. Revenue from operations rose 129.8% to Rs 324.97 crore compared to Rs 141.39 crore a year earlier.

Earnings before interest, tax, depreciation, and amortization (EBITDA) rose to Rs 162.74 crore in Q4 against Rs 53.08 crore last year, leading to EBITDA margins of 50.08%, compared to 37.54% in the prior year.

Zen Technologies Limited designs, develops, and manufactures defence training systems, based on sensors and simulators technology. The company’s category of products includes land-based military training simulators, driving simulators, live range equipment and anti-drone systems. The company also has a training platform in Hyderabad, with an integration of its complete product range. Its Anti-Drone System (ZADS) system works on drone detection, classification and tracking on passive surveillance, camera sensors and neutralization of threat by jamming drone communication.