Zen Technologies Share Price Rebounds Over 10% After Recent Decline

Shares of Zen Technologies Ltd. surged by over 10% on Wednesday, hitting upper circuit limit as it showed signs of recovery from a steep 30% decline over the past two days.

Zen Technologies’ share price had been on a downward trajectory, hitting a lifetime low on Tuesday. The stock declined by 10%, following a 20% drop on Monday, driven by the company’s third-quarter earnings report, which fell short of analysts’ expectations.

The company’s revenue for the quarter grew by 52.9% year-on-year to Rs 152 crore, up from Rs 99.5 crore in the same period last year. However, this was significantly below the estimated revenue of Rs 231.6 crore. Zen Technologies reported an Ebitda of Rs 44.2 crore, a modest increase of 4% from Rs 42.5 crore year-on-year, but this figure also missed the market estimate of Rs 100.5 crore. The company’s Ebitda margin contracted to 29% from 42.7% in the previous year.

Net profit for the quarter stood at Rs 39.7 crore, marking a 29.9% increase from Rs 30.6 crore in the same period last year. Despite this growth, the net profit fell short of the estimated Rs 73.2 crore, further disappointing investors.

Zen Technologies has been a prominent player in the defence sector, known for its innovative training solutions and simulators. The company has been expanding its product portfolio and market reach, aiming to capitalise on the growing demand for advanced defence training systems.

Shares of Zen Technologies rose as much as 10% to Rs 1,069 apiece. They were trading at the same level as of 10:40 a.m. This compares to a 0.39% advance in the NSE Nifty 50.

The stock has risen 32.71% in the last 12 months. Total traded volume so far in the day stood at 6.3 times its 30-day average. The relative strength index was at 23.

All four companies tracking the company maintain a 'buy' rating on the stock, according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 7.2%.