Zen Tech Ltd’s fundamental analysis highlights essential financial metrics, including a total market capitalization of ₹21,708 crore, a debt-to-equity ratio of 0.04, and a return on equity (ROE) of 33.0%. These numbers offer valuable insight into the company’s financial stability and overall market valuation.
Table of Contents
Overview of the Defence Sector
The defense sector is crucial for national security, involving the development, production, and maintenance of military equipment, technologies, and services. It encompasses a wide range of activities, including aerospace, land defense, naval systems, and cybersecurity, with significant government investment.
With rising global tensions and increasing defense budgets, the sector is experiencing steady growth. Advancements in technology, such as AI, robotics, and unmanned systems, are reshaping the industry. Countries are focusing on modernizing their defense forces, which is driving demand for advanced defense solutions and innovations across all domains.
Financial Analysis of Zen Tech in the Defence Industry
| FY 24 | FY 23 | FY 22 | FY 21 | |
| Sales | 439.85 | 218.85 | 69.75 | 54.64 |
| Expenses | 259.07 | 146.23 | 65.18 | 47.26 |
| Operating Profit | 180.78 | 72.61 | 4.57 | 7.38 |
| OPM % | 39.75 | 32.12 | 6.08 | 12.8 |
| Other Income | 17.33 | 9.25 | 5.1 | 3.02 |
| EBITDA | 195.71 | 79.86 | 9.95 | 10.41 |
| Interest | 2.28 | 4.08 | 1.53 | 1.09 |
| Depreciation | 9.68 | 6.06 | 4.83 | 4.95 |
| Profit Before Tax | 186.15 | 71.73 | 3.3 | 4.36 |
| Tax % | 30.43 | 30.34 | 21 | 36.4 |
| Net Profit | 129.5 | 49.97 | 2.61 | 2.77 |
| EPS | 15.22 | 5.38 | 0.25 | 0.39 |
| Dividend Payout % | 6.57 | 3.72 | 40 | 25.64 |
* Consolidated Figures in Rs. Crores
Zen Tech Company Metrics
Zen Tech’s financial performance in the defense industry showcases remarkable growth: FY24 sales surged to ₹439.85 crore from ₹218.85 crore in FY23 and ₹69.75 crore in FY22. Operating profit soared to ₹180.78 crore, reflecting enhanced operational efficiency and strategic execution.
Sales Growth: Sales increased by 101% to ₹439.85 crore in FY24, compared to ₹218.85 crore in FY23. FY23 saw a substantial 213.71% growth from ₹69.75 crore in FY22, driven by increasing demand for defense technology solutions.
Expense Trends: Expenses rose to ₹259.07 crore in FY24, reflecting a 77.14% increase from ₹146.23 crore in FY23. FY23 expenses grew by 124.32% from ₹65.18 crore in FY22, indicating scalable operations in line with revenue growth.
Operating Profit & Margins: Operating profit surged to ₹180.78 crore in FY24, a 149% increase from ₹72.61 crore in FY23. OPM improved to 39.75% in FY24 from 32.12% in FY23, significantly higher than FY22’s 6.08%, signaling enhanced efficiency.
Profitability Indicators: Net profit grew to ₹129.5 crore in FY24, a 159% rise from ₹49.97 crore in FY23. FY22 net profit was ₹2.61 crore. EPS increased sharply to ₹15.22 in FY24 from ₹5.38 in FY23, reflecting improved shareholder value.
Taxation & Dividend: The tax rate remained stable at 30.43% in FY24, slightly higher than 30.34% in FY23. Dividend payout rose to 6.57% in FY24, up from 3.72% in FY23. FY22 had a higher payout of 40%, reflecting varied dividend strategies.
Key Financial Metrics: EBITDA rose to ₹195.71 crore in FY24 from ₹79.86 crore in FY23 and ₹9.95 crore in FY22. Interest expenses decreased to ₹2.28 crore in FY24, while depreciation rose to ₹9.68 crore, indicating sustained investment in assets.
Zen Tech Stock Performance
Zen Tech Ltd has demonstrated strong stock performance, with a 203% return in the past year, 123% over the last three years, and 112% in the last five years. This growth highlights the company’s robust expansion in the defense sector.
| Duration | Return |
| 1 year | 203 % |
| 3 years | 123 % |
| 5 years | 112 % |
Zen Tech Shareholding Pattern
The shareholding pattern of Zen Tech Ltd shows a decrease in promoter ownership from 60.19% in Mar 2022 to 51.26% in Sep 2024. FIIs and DIIs have increased their stake, with public and government holdings maintaining significant proportions over the years.
| Metrics | Mar 2022 | Mar 2023 | Mar 2024 | Sep 2024 |
| Promoters | 60.19% | 60.14% | 55.07% | 51.26% |
| FIIs | 0.29% | 1.29% | 3.84% | 5.72% |
| DIIs | 0.00% | 0.15% | 3.31% | 8.05% |
| Government | 39.52% | 37.82% | 37.15% | 34.49% |
| Public | 0.00% | 0.61% | 0.62% | 0.47% |
| No. of Shareholders | 1,14,705 | 1,08,420 | 1,70,421 | 2,29,479 |
Zen Tech Partnerships and Acquisitions
Zen Tech has strengthened its position through strategic acquisitions. In February 2024, the company acquired a 51% stake in AiTuring Technologies for Rs 3.87 crore, focusing on robotics and electronic optics solutions, which enhance its R&D capabilities and product offerings.
In March 2020, Zen Tech Manufacturing acquired CAMtek, Inc., now operating as Zen Tech Bloomington (IL). This acquisition enabled Zen Tech to expand its manufacturing footprint, enhancing its ability to produce complex defense electronics and further integrating advanced technologies into its product range.
Additionally, Zen Tech acquired Trilogy Circuits, LLC in January 2020. This acquisition allowed Zen Tech to strengthen its circuit board manufacturing capabilities, supporting its growth in the defense and aerospace sectors while improving efficiency and product quality.
Zen Tech Peer comparison
Zen Tech Ltd’s peer comparison reveals strong performance with a P/E ratio of 107.12 and a 1-year return of 202.57%. Its market cap of ₹21,708.06 crore positions it as a strong player, outperforming peers like Mazagon Dock and Cochin Shipyard.
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | ROE % | ROCE % | 6mth return % | 1Yr return % | Div Yld % |
| Mazagon Dock | 2317.4 | 93479.28 | 36.36 | 35.19 | 44.19 | 7.05 | 103.2 | 0.59 |
| Cochin Shipyard | 1539.05 | 40489.45 | 45.67 | 17.21 | 21.62 | -31.92 | 127.34 | 0.63 |
| Zen Technologies | 2404.25 | 21708.06 | 107.12 | 33.01 | 45.97 | 84.96 | 202.57 | 0.04 |
| Garden Reach Sh. | 1695.8 | 19425.73 | 50.48 | 22.21 | 27.37 | -29.5 | 94.19 | 0.55 |
| Taneja Aerospace | 417.15 | 1063.75 | 84.63 | 9.27 | 13.26 | -30.39 | 19.19 | 0.96 |
Future of Zen Tech
Zen Tech is poised for significant growth, driven by its increasing market presence in the defense sector. Its consistent innovation and strategic investments in advanced technologies will likely strengthen its competitive edge, positioning it for further expansion in both domestic and international markets.
With increasing demand for defense technology and India’s focus on enhancing its military capabilities, Zen Tech stands to benefit. The company’s focus on expanding its product portfolio and securing large contracts will help solidify its market leadership and diversify revenue streams.
Zen Tech’s focus on sustainability and environmental responsibility also enhances its future prospects. By aligning with the government’s defense and manufacturing initiatives, the company can continue its upward trajectory, attracting strategic partnerships and strengthening its position in the global defense industry.
How to Invest in Zen Tech Share?
To invest in Zen Tech shares, begin by opening a Demat and trading account with a trusted stockbroker such as Alice Blue. This account allows you to securely buy and hold shares electronically.
- Research the Stock: Analyze Zen Tech’s financials, market trends, and growth prospects to understand its potential risks and rewards before investing.
- Choose a Reliable Stockbroker: Select a trusted broker like Alice Blue for its user-friendly platform and competitive fees, then register to access the stock market.
- Fund Your Trading Account: Deposit funds into your trading account, ensuring enough balance to cover share purchases and additional fees.
- Place a Buy Order: Search for Zen Tech on your broker’s platform and place a buy order with a specified quantity and price (market or limit order).
- Monitor Your Investment: Track your investment’s performance regularly and stay updated on news or developments that could impact your decision to hold or sell.
- Brokerage Tariffs: Please note that Alice Blue’s updated brokerage tariff is now Rs. 20 per order, which will apply to all trades.
Zen Tech – FAQs
Zen Tech’s current market capitalization stands at ₹21,708 crore. This reflects the company’s strong position in the defense industry and its ability to attract investor interest, showcasing its expanding operations and growth potential in the sector.
Zen Tech is a prominent player in the defense industry, offering innovative solutions. While it may not be the absolute leader, its strong market presence, technological expertise, and commitment to advancing defense systems position it as a key industry participant.
Zen Tech has made notable acquisitions, including a 51% stake in AiTuring Technologies in February 2024, CAMtek Inc. in March 2020, and Trilogy Circuits in January 2020. These acquisitions strengthen Zen Tech’s capabilities in robotics, optics, and circuit manufacturing.
Zen Tech specializes in providing advanced technological solutions and services to the defense sector. The company is involved in manufacturing, designing, and developing innovative products, including defense equipment and systems, aimed at enhancing national security and defense capabilities.
Zen Tech is primarily owned by its promoters, who control the majority of the company’s shares. The promoters play a significant role in guiding the company’s strategic decisions, contributing to its growth and expansion in the defense and technology sectors. Ashok Atluri is the Chairman and Managing Director (CMD) of Zen Technologies.
As of the latest data, the main shareholders of Zen Tech include the promoters with 60.19%, followed by institutional investors such as FIIs (5.72%) and DIIs (8.05%), with the remaining shares held by the public and other entities.
Zen Tech operates in the defense industry, focusing on providing cutting-edge technology and solutions for national defense. It specializes in defense manufacturing, electronics, and systems integration, which is crucial in strengthening defense infrastructure and capabilities.
Zen Tech has experienced significant growth in its order book, driven by an increasing demand for advanced defense technologies and solutions. The company’s strategic expansion and innovation in defense products have contributed to its growing portfolio of orders and long-term projects.
To invest in Zen Tech shares, open a Demat and trading account with a reliable broker like Alice Blue. Fund your account, research the stock, and place a buy order through the broker’s platform. Regularly monitor your investment to track performance and make informed decisions based on market trends.
Zen Tech’s stock is currently priced with a P/E ratio of 107, indicating that it may be slightly overvalued compared to the industry average. However, strong growth prospects and its position in the defense sector can justify this valuation over time.
The future of Zen Tech looks promising, driven by increasing defense spending and technological advancements. The company is poised for growth through strategic partnerships, expanding its product portfolio, and capitalizing on emerging opportunities in the defense and technology sectors.
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Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
