Zen Technologies Limited (ZENTEC) AI Stock Analysis

• Market Cap: ₹127.02B
• Dividend Yield: 0.14%
• Average Volume (3M): 38.77K
• Price to Earnings (P/E): 51.0
• Beta (1Y): 1.65
• Revenue Growth: 9.71%
• EPS Growth: 13.45%
• Country: IN
• Employees: 342
• Sector: Technology
• Sector Strength: 88
• Industry: Aerospace & Defense
• EPS (TTM): 6.60
• Shares Outstanding: 90,290,360
• 10 Day Avg. Volume: 37,406
• 30 Day Avg. Volume: 38,774
• PEG Ratio: 0.41
• Price to Book (P/B): 7.35
• Price to Sales (P/S): 12.84
• P/FCF Ratio: -70.03
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: ₹1,393.00 ▲(0.37% Upside)

Zen Technologies Limited's strong financial performance is the primary positive factor, supported by robust revenue and profit growth. However, the technical analysis indicates bearish momentum, and the high P/E ratio suggests potential overvaluation. These factors collectively result in a moderate overall stock score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates successful market expansion and product adoption, strengthening the company's market position in the defense sector.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability and flexibility, enabling the company to invest in growth opportunities and withstand economic fluctuations.

Profit Margins

Healthy profit margins suggest effective cost control and pricing power, which are crucial for sustaining profitability and competitive advantage in the long term.

Negative Factors

Cash Flow Volatility

Volatile cash flow can challenge the company's ability to fund operations and growth consistently, potentially impacting its financial flexibility and stability.

Cash Flow Growth Inconsistency

Inconsistent cash flow growth can hinder the company's ability to invest in new projects and technologies, affecting its long-term growth prospects and competitive position.

Stock Price Momentum

While not a fundamental factor, prolonged bearish momentum can impact investor sentiment and access to capital, indirectly affecting strategic initiatives.

Zen Technologies Limited Business Overview & Revenue Model

Company Description

Zen Technologies Limited, together with its subsidiary, designs, develops, and manufactures training simulators in India and internationally. The company provides anti drone systems; combat training simulation and war gaming solutions; armour combat training, indoor tracking, and tactical engagement simulation systems; and digital beamforming solutions. It also offers mortar integrated and carrier motor tracked, anti-aircraft air defense, anti-tank guided missile, artillery forward observer, automatic grenade launcher, infantry weapon training, UAV mission, rotary wing, medium machine gun, integrated air defense combat, infantry combat vehicle driving, crew gunnery, driving and automated driving, BMP II integrated missile, driver aptitude testing, advanced weapon, driving training, bus driving, and tatra driving simulators. In addition, the company provides containerized tubular and indoor shooting range, hand grenade simulator, smart target, shoot house for live and simulated indoor tactical training, master control station for live-firing ranges, tank target and zeroing, air-to-ground firing range, corner shot weapon, and multi-functional target systems. It serves police, para-military, armed, and security forces; government departments comprising transport, mining, and infrastructure; and the civilian market. Zen Technologies Limited was incorporated in 1993 and is headquartered in Hyderabad, India.

How the Company Makes Money

ZENTEC generates revenue primarily through the sale of its defense and security technologies, including training simulators and unmanned systems. The company has a diversified revenue model that includes direct sales to government agencies, long-term contracts for defense projects, and service agreements for maintenance and support of its products. Additionally, ZENTEC engages in research and development partnerships with military organizations, which can provide funding and resources for new product innovations. Strategic alliances with other technology firms and defense contractors also contribute to its revenue streams, enhancing its market reach and product offerings.

Zen Technologies Limited Financial Statement Overview

Summary

Zen Technologies Limited shows strong financial performance with robust revenue and profit growth, a solid balance sheet, and effective cost management. However, cash flow fluctuations slightly temper the overall financial stability.

Income Statement

Zen Technologies Limited has demonstrated strong revenue growth with notable increases in total revenue over the past years. The gross profit margin and net profit margin are healthy, indicating efficient cost management and strong profitability. EBIT and EBITDA margins are also robust, reflecting good operational performance. Revenue growth is substantial, showcasing the company's successful expansion efforts.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio, reflecting prudent financial leverage. The return on equity is impressive, indicating that the company is effectively using its equity base to generate profits. The equity ratio is high, highlighting a strong capital structure with significant shareholder equity.

Cash Flow

Zen Technologies Limited has experienced fluctuations in cash flow, with operating cash flow showing volatility. Despite this, the free cash flow to net income ratio suggests efficient cash conversion. However, the free cash flow growth rate indicates some inconsistency, which may pose challenges in sustaining long-term cash flow stability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.77B	9.74B	4.40B	2.19B	697.52M	546.40M
Gross Profit	4.91B	5.89B	3.11B	1.53B	525.66M	211.12M
EBITDA	3.78B	3.74B	1.98B	818.59M	96.67M	104.02M
Net Income	2.51B	2.80B	1.28B	427.38M	19.85M	31.11M
Balance Sheet
Total Assets	0.00	20.49B	7.51B	4.74B	3.69B	2.23B
Cash, Cash Equivalents and Short-Term Investments	9.66B	8.45B	906.26M	2.22B	1.91B	823.29M
Total Debt	0.00	777.04M	60.34M	67.54M	147.55M	19.64M
Total Liabilities	-17.36B	3.13B	2.84B	1.43B	790.60M	126.61M
Stockholders Equity	17.36B	17.01B	4.49B	3.16B	2.83B	2.04B
Cash Flow
Free Cash Flow	439.77M	-1.79B	-167.19M	1.03B	-485.64M	116.01M
Operating Cash Flow	541.55M	-1.46B	134.17M	1.16B	-442.58M	135.85M
Investing Cash Flow	-9.88B	-8.23B	-852.38M	-36.91M	-436.05M	-97.65M
Financing Cash Flow	9.68B	10.07B	-32.95M	-218.83M	879.82M	89.85M

Zen Technologies Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1387.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ZENTEC, the sentiment is Neutral. The current price of 1387.9 is below the 20-day moving average (MA) of 1393.66, below the 50-day MA of 1393.00, and below the 200-day MA of 1543.24, indicating a bearish trend. The MACD of -8.52 indicates Positive momentum. The RSI at 49.65 is Neutral, neither overbought nor oversold. The STOCH value of 52.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:ZENTEC.

Zen Technologies Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INTELLECT	73 Outperform	₹166.70B	41.37	―	0.68%	15.87%	39.55%
DATAPATTNS	72 Outperform	₹151.20B	70.48	―	0.30%	77.99%	26.08%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MAPMYINDIA	61 Neutral	₹97.49B	61.57	―	0.22%	22.12%	7.40%
NETWEB	59 Neutral	₹205.76B	151.99	―	0.08%	47.18%	38.90%
ZENTEC	58 Neutral	₹127.02B	51.01	―	0.14%	9.71%	13.45%
ASTRAMICRO	51 Neutral	₹100.63B	61.89	―	0.25%	11.44%	23.56%

Zen Technologies Limited Corporate Events

Zen Technologies Transfers 1,000 Equity Shares to Employees

Zen Technologies Limited has transferred 1,000 equity shares to its employees under the Zen Technologies Limited Employee Stock Option Plan-2021. This transfer, executed from the company’s Employees Welfare Trust, does not alter the company’s paid-up share capital, and the newly allotted shares are identical to existing ones, ensuring no change in the company’s equity structure.

Zen Technologies Secures Rs. 108 Crore Defense Contract for Simulators

Zen Technologies Limited has secured a significant order from the Ministry of Defence, Government of India, valued at approximately Rs. 108 crores, for the supply of simulators. This contract underscores Zen Technologies’ strong positioning in the defense sector and is expected to enhance its operational capabilities and market presence, reflecting positively on its stakeholders.

Zen Technologies Acquires Majority Stake in Anawave Systems

Zen Technologies Limited has announced the completion of its acquisition of a 76% stake in Anawave Systems & Solutions Private Limited, making it a subsidiary. This strategic move is expected to enhance Zen Technologies’ capabilities and market positioning, potentially offering new opportunities for growth and expansion in the technology and defense sectors.

Zen Technologies Secures ₹289 Crore Order for Anti-Drone System Upgrades

Zen Technologies Limited has secured a significant contract worth ₹289 crore from the Ministry of Defence, India, for upgrading its Anti-Drone Systems. This contract underscores the strategic necessity of prioritizing indigenously designed, developed, and manufactured defense solutions over foreign imports, enabling rapid system enhancements and operational adaptability to counter evolving drone threats. The upgrades are a response to operational feedback from missions like Op Sindoor, emphasizing the importance of having complete control over defense system components to address threats such as hardware compromise and software malware. Zen Technologies’ commitment to IDDM solutions ensures that India can anticipate and defend against next-generation threats, maintaining national security.

Zen Technologies CFO Resigns for New Opportunities

Zen Technologies Limited has announced the resignation of its Chief Financial Officer, Mr. Afzal Harunbhai Malkani, effective from November 30, 2025. Mr. Malkani is leaving the company to pursue better opportunities and career prospects. This change in the company’s key managerial personnel may have implications for its financial management and strategic planning.

Zen Technologies Announces Change in Board of Directors

Zen Technologies Limited has announced a change in its board of directors. The company has confirmed that Dr. Ajay Kumar Singh has completed his second consecutive term as an Independent Director as of November 1, 2025, and has ceased his role effective November 2, 2025. The board and management have expressed their appreciation for Dr. Singh’s valuable contributions and guidance during his tenure.

Zen Technologies Secures ₹ 289 Crore Defense Contract for Anti-Drone Systems

Zen Technologies Limited has announced the receipt of two significant orders from the Ministry of Defence, Government of India, for the upgradation of Anti-Drone Systems, valued at ₹ 289 crores. This development underscores Zen Technologies’ strong positioning in the defense sector, enhancing its role in providing cutting-edge solutions to the Indian defense forces, and is expected to positively impact its operational and financial performance.

Zen Technologies Publishes Unaudited Financial Results

Zen Technologies Limited has announced the publication of its unaudited financial results for the quarter and half-year ending September 30, 2025. These results have been published in the Financial Express and Nava Telangana newspapers, reflecting the company’s commitment to transparency and regulatory compliance.

Zen Technologies Releases Q2 Financial Results

Zen Technologies Limited has released an Investor Presentation detailing the unaudited financial results for the quarter and half-year ending September 30, 2025. This release is significant as it provides stakeholders with insights into the company’s financial performance and strategic positioning in the market.

Zen Technologies Reports Resilient Q2 FY26 Results Amid Procedural Delays

Zen Technologies announced its financial results for Q2 and H1 FY26, highlighting operational strength despite revenue impacts due to procedural delays in order finalizations. The company maintains strong liquidity and anticipates increased subsidiary contributions as synergies are realized. The recent Operation Sindoor has led to increased interest in Zen’s anti-drone systems, and the company remains optimistic about future performance driven by innovation and India’s defense modernization efforts.

Zen Technologies Reports Robust Financial Performance for Q2 2025

Zen Technologies Limited announced its financial results for the second quarter and half-year ending September 30, 2025, showcasing a significant performance with a total income of Rs. 27,859.20 lakhs and a net profit of Rs. 8,328.05 lakhs for the half-year. The results reflect the company’s strong operational capabilities and strategic market positioning, which are likely to enhance stakeholder confidence and support future growth prospects.

Zen Technologies Reports Strong Half-Year Financials

Zen Technologies Limited announced the approval of its Standalone and Consolidated Unaudited Financial Results for the second quarter and half-year ending September 30, 2025, during a Board of Directors meeting. The financial results indicate a total income of Rs. 27,859.20 lakhs for the half-year, with a net profit of Rs. 8,328.05 lakhs, reflecting the company’s stable performance in the technology and defense training industry.

Zen Technologies Grants 37,750 Employee Stock Options

Zen Technologies Limited has announced the grant of 37,750 Employee Stock Options (ESOPs) under its 2021 Employee Stock Option Plan. This move, approved by the Nomination and Remuneration Committee, aligns with SEBI regulations and is part of the company’s strategy to incentivize employees, potentially impacting its market positioning by enhancing employee engagement and retention.

Zen Technologies Schedules Earnings Call for Q2 & H1 FY26

Zen Technologies Limited has announced an upcoming earnings conference call scheduled for October 27, 2025, to discuss its Q2 and H1 FY26 performance. This call will provide stakeholders with insights into the company’s financial health and strategic direction, although no unpublished price-sensitive information will be shared.

Zen Technologies Secures Rs. 37 Crore Defense Contract

Zen Technologies Limited has secured a significant contract from the Ministry of Defence, Government of India, valued at approximately Rs. 37 crores. This contract involves the supply of Anti-Drone Systems with Hard Kill capabilities, marking a strategic advancement in the company’s operations and reinforcing its position in the defense sector.