In a regulatory filing, Zen Technologies has informed the stock exchanges that it has received orders worth Rs 404 crore (including GST) from the Ministry of Defence, Government of India. The order comprises two key components — Rs 332 crore for the supply of Anti-Drone Systems (Counter Unmanned Aerial Systems or C-UAS) and Rs 72 crore for training simulators and associated defence equipment.
The company said the orders have been placed by a domestic government authority, underscoring its contribution to India’s defence modernisation through advanced indigenous technology. Zen Technologies added that the entire order is expected to be completed within one year, ensuring strong near-term revenue visibility.
It has also clarified that there is no involvement of promoters or promoter group entities in the awarding authority. Additionally, the contracts do not qualify as related-party transactions and have been granted on a pure arm’s-length basis, ensuring transparency and regulatory compliance.
Investors responded positively to the development, as the order win is seen as a strong endorsement of Zen Technologies’ expertise in defence training systems and counter-drone solutions, and is expected to strengthen the company’s order book and revenue outlook.
Valuation Perspective: Zen Tech currently has a Price-to-Earnings (P/E) ratio of 45.03, a Price-to-Sales (P/S) ratio of 13.7, and a Price-to-Book (P/B) ratio of 6.43. These ratios suggest that, relative to its earnings, sales, and book value, the stock is trading at a relatively high multiple, indicating it may be somewhat expensive compared to traditional valuation benchmarks.
On the technical front, Trendlyne data shows that Zen Tech’s 14-day Relative Strength Index (RSI) stands at 26.5. An RSI below 30 typically signals an oversold condition, suggesting the stock may have witnessed excessive selling and could be poised for a potential rebound.
Zen Tech is trading below 6 out of 8 key Simple Moving Averages (SMAs). This is generally viewed as a bearish signal, indicating the stock is under short- to medium-term downward pressure.