Zen Technologies Ltd

25 sept

Zen Technologies Ltd is a leader in defense training and counter-drone solutions, actively contributing to the Indian defense sector. Below are the key financials and business highlights as of 25 September:

### Key Financial Data:
- **Current Price**: ₹1,698
- **Market Cap**: ₹15,342 Cr
- **Stock P/E**: 99.9
- **Book Value**: ₹53.4
- **Dividend Yield**: 0.06%
- **ROCE**: 46.1%
- **ROE**: 33.1%
- **Face Value**: ₹1.00
- **High/Low (52 Weeks)**: ₹1,970 / ₹650
- **Promoter Holding**: 51.3%
- **Public Holding**: 34.3%
- **Debt**: Almost debt-free with 153 debtor days.
- **Piotroski Score**: 6.00 (indicates moderate financial health).
- **Quarterly Sales Growth**: 63.1% YoY
- **Return on Equity (ROE)**: 33.1%

### Business Highlights:
- **Product Portfolio**:
1. **Training Simulation Equipment**: Leading defense training provider.
2. **Counter-Drone Solutions**: Anti-drone systems with a 4-km detection and deactivation radius.
3. **Annual Maintenance Contracts**: Provides recurring revenue with high-profit margins.

### Growth Data:
- **Sales Growth (5 years)**: 36.7%
- **Sales Growth (3 years)**: 100%
- **Return Over 6 months**: 77.5%

### Pros:
- Debt-free company.
- Strong profit growth (56.9% CAGR over 5 years).
- Excellent sales growth over the past decade.

### Cons:
- High valuation with the stock trading at 31.8 times its book value.
- High debtors of 153 days.
- Promoter holding decreased by 3.81% last quarter.

### Peer Comparison (Aerospace & Defense Sector):
1. **Cochin Shipyard**: ₹1,745.10
2. **Garden Reach Shipbuilders**: ₹1,718.85
3. **Taneja Aerospace**: ₹510.30

Zen Technologies is poised for growth in defense-related industries, with a diversified portfolio and promising financial metrics. However, the high P/E ratio and valuation multiples suggest that the stock is expensive compared to its peers.