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533339: Defence Orders Will Drive Future Upside Potential

Government Deals And AI Adoption Will Drive Defense Sector Developments

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533339
AnalystConsensusTarget
Not Invested
Published 20 Feb 2025

Update shared on 10 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
-43.1%
7D
1.3%

Analysts have nudged their price target on Zen Technologies slightly higher to ₹1,642.80. This reflects marginally increased confidence in the company’s long term profit margins and valuation multiples, despite largely unchanged growth assumptions.

What's in the News

  • Secured two major Ministry of Defence contracts worth INR 2,890 million (including GST) to upgrade Anti Drone Systems, with execution expected within a year (company announcement)
  • Received a separate Ministry of Defence order of approximately INR 370 million for supply of Anti Drone Systems with Hard Kill, to be completed within a year (company announcement)
  • Won a Ministry of Defence contract totaling INR 1,080 million (including GST) for tank crew gunnery training simulators, marking an initial phase of a larger simulation based training rollout under the 2021 Simulation Framework (company announcement)
  • Bagged an additional INR 1,200 million (including GST) Ministry of Defence order for a Comprehensive Training Node comprising multiple training simulators and equipment, to be executed within a year (company announcement)
  • Scheduled a November 5, 2025 board meeting to consider investing up to INR 70 million for a 76% stake in Anawave Systems and Solutions Private Limited (board notice)

Valuation Changes

  • Fair Value: Unchanged at ₹1,642.8 per share. This indicates no revision to the fundamental valuation estimate.
  • Discount Rate: Risen slightly from 13.61 percent to 13.64 percent. This implies a marginally higher required return.
  • Revenue Growth: Effectively unchanged at about 40.63 percent. This signals stable long term growth assumptions.
  • Net Profit Margin: Risen slightly from 27.08 percent to 27.10 percent. This reflects a modest improvement in long term profitability expectations.
  • Future P/E: Ticked up marginally from 35.19x to 35.20x. This suggests a very small increase in the implied valuation multiple.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.