NSEI:ZENTEC

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Zen Technologies

Executive Summary

Zen Technologies Limited, together with its subsidiary, designs, develops, and manufactures training simulators in India and internationally.


Snowflake Analysis

Flawless balance sheet with outstanding track record.

Share Price & News

How has Zen Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ZENTEC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.8%

ZENTEC

-1.5%

IN Electronic

2.9%

IN Market


1 Year Return

-25.2%

ZENTEC

14.5%

IN Electronic

-4.9%

IN Market

Return vs Industry: ZENTEC underperformed the Indian Electronic industry which returned 13.2% over the past year.

Return vs Market: ZENTEC underperformed the Indian Market which returned -5.3% over the past year.


Shareholder returns

ZENTECIndustryMarket
7 Day-2.8%-1.5%2.9%
30 Day1.1%2.8%5.8%
90 Day78.6%7.4%18.5%
1 Year-24.9%-25.2%15.9%14.5%-3.0%-4.9%
3 Year-11.1%-11.9%51.4%46.5%1.5%-3.3%
5 Year-41.1%-42.0%120.4%109.6%26.8%17.0%

Price Volatility Vs. Market

How volatile is Zen Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Zen Technologies undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ZENTEC (₹51.25) is trading below our estimate of fair value (₹134.82)

Significantly Below Fair Value: ZENTEC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ZENTEC is good value based on its PE Ratio (6.7x) compared to the Electronic industry average (12.7x).

PE vs Market: ZENTEC is good value based on its PE Ratio (6.7x) compared to the Indian market (12.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ZENTEC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ZENTEC is overvalued based on its PB Ratio (2.1x) compared to the IN Electronic industry average (0.7x).


Next Steps

Future Growth

How is Zen Technologies forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

23.4%

Forecasted Tech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Zen Technologies has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Zen Technologies performed over the past 5 years?

36.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZENTEC has high quality earnings.

Growing Profit Margin: ZENTEC's current net profit margins (39.4%) are higher than last year (14.6%).


Past Earnings Growth Analysis

Earnings Trend: ZENTEC's earnings have grown significantly by 36.3% per year over the past 5 years.

Accelerating Growth: ZENTEC's earnings growth over the past year (334.2%) exceeds its 5-year average (36.3% per year).

Earnings vs Industry: ZENTEC earnings growth over the past year (334.2%) exceeded the Electronic industry -5%.


Return on Equity

High ROE: ZENTEC's Return on Equity (29.6%) is considered high.


Next Steps

Financial Health

How is Zen Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: ZENTEC's short term assets (₹1.2B) exceed its short term liabilities (₹132.9M).

Long Term Liabilities: ZENTEC's short term assets (₹1.2B) exceed its long term liabilities (₹30.1M).


Debt to Equity History and Analysis

Debt Level: ZENTEC's debt to equity ratio (1.4%) is considered satisfactory.

Reducing Debt: ZENTEC's debt to equity ratio has reduced from 35.8% to 1.4% over the past 5 years.

Debt Coverage: ZENTEC's debt is well covered by operating cash flow (2232.7%).

Interest Coverage: ZENTEC's interest payments on its debt are well covered by EBIT (17.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Zen Technologies's current dividend yield, its reliability and sustainability?

0.78%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ZENTEC's dividend (0.78%) is higher than the bottom 25% of dividend payers in the Indian market (0.68%).

High Dividend: ZENTEC's dividend (0.78%) is low compared to the top 25% of dividend payers in the Indian market (2.75%).


Stability and Growth of Payments

Stable Dividend: ZENTEC's dividend payments have been volatile in the past 10 years.

Growing Dividend: ZENTEC's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (5.2%), ZENTEC's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure


CEO

Ashok Atluri (55yo)

no data

Tenure

₹8,232,791

Compensation

Mr. Ashok Atluri, B.Com, PGDACS, serves as the Chief Financial Officer at Zen Technologies Limited since June 6, 2020. He also serves as the Managing Director of Zen Technologies Ltd and served as its Comp ...


CEO Compensation Analysis

Compensation vs Market: Ashok's total compensation ($USD110.06K) is above average for companies of similar size in the Indian market ($USD49.45K).

Compensation vs Earnings: Ashok's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ashok Atluri
Chairmanno data₹8.23m26.19% 1.1b
Midathala Kumar
Head of R&D Division & Whole Time Director27.08yrs₹4.05m1.03% 42.0m
H. Kamath
Senior Vice President of Business Development5.67yrsno data0.017% 684.8k
N. Kumar
Head of Subsidiary Accounts1.42yrs₹1.80mno data
Brig Shahab
Vice President of Projects & Coordinationno datano datano data
Kishore Atluri
President14.83yrsno data22.75% 929.6m
P. Rao
General Manager of Finance & Accountsno datano datano data
Hansraj Rajput
Company Secretary & Compliance Officer1yrno datano data
Amul Asthana
Vice President of Projectsno datano datano data

3.5yrs

Average Tenure

59.5yo

Average Age

Experienced Management: ZENTEC's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ashok Atluri
Chairmanno data₹8.23m26.19% 1.1b
Midathala Kumar
Head of R&D Division & Whole Time Director27.08yrs₹4.05m1.03% 42.0m
Amreek Sandhu
Independent Director2.42yrs₹250.00kno data
Ravindra Tyagi
Independent Director1.25yrsno datano data
Venkat Samir Oruganti
Independent Non-Executive Director4.92yrs₹250.00kno data
Ajay Singh
Independent Director0.67yrno datano data

2.4yrs

Average Tenure

60yo

Average Age

Experienced Board: ZENTEC's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Zen Technologies Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Zen Technologies Limited
  • Ticker: ZENTEC
  • Exchange: NSEI
  • Founded: 1993
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: ₹4.086b
  • Shares outstanding: 77.16m
  • Website: https://www.zentechnologies.com

Location

  • Zen Technologies Limited
  • B-42, Industrial Estate
  • Sanathnagar
  • Hyderabad
  • Andhra Pradesh
  • 500018
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
533339BSE (Mumbai Stock Exchange)YesEquity SharesININROct 2004
ZENTECNSEI (National Stock Exchange of India)YesEquity SharesININROct 2004

Biography

Zen Technologies Limited, together with its subsidiary, designs, develops, and manufactures training simulators in India and internationally. It offers firearms training, advanced weapon, small arms training, hand grenade, driving training, artillery forward observer, driving and automated driving, tactical engagement, anti-tank guided missile, tank gunner and crew gunnery, and tank driving simulators. The company also provides combat training simulation, smart target, tank target and zeroing, multi-functional target, air-to-ground firing range, driver aptitude testing, and armour combat training systems; bus driving, mortar integrated and tracked, hand grenades, infantry weapon training, unmanned aerial vehicle, medium machine gun, automatic grenade launcher, anti-aircraft air defense, UAV mission, and rotary wing simulators; and war gaming solutions. In addition, it offers master control station for live-firing ranges, indoor tracking systems, infantry combat vehicle driving simulators, and BMP II integrated missile simulators. Further, the company operates containerized tubular and indoor shooting range; and shoot house for live and simulated indoor tactical training. 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 based in Hyderabad, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/08 12:53
End of Day Share Price2020/07/08 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.