Zen Technologies Q4 Review: Decent Results; Motilal Oswal Downgrades To Neutral On Expensive Valuations

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Zen Technologies Ltd. posted a strong set of numbers with a beat on revenue and PAT in Q4 FY25. The company received order inflows of Rs 1.5 billion during the quarter, and the current order book stands at Rs 6.9 billion. We expect Zen to benefit from the fast-tracking of defense orders in light of current geopolitical concerns.

With acquisitions done during FY25, Zen was able to expand its portfolio of offerings.

We upgrade our estimates by 4%/7% for FY26/27 and revise the target price to Rs 1,750 based on 30x Mar’27E earnings (from Rs 1,600). The stock is currently trading at 49.7x/33.0x P/E on FY26/27E earnings. Our estimates bake in a CAGR of 34%/40% in revenue/PAT over FY25-27 with strong Ebitda margin of 37%.

While we remain positive on the company and its ability to capitalize on upcoming demand for simulators and anti-drones, our estimates and current valuations capture the positives related to upcoming orders and correspondingly a 40% PAT CAGR over FY25-27.

The stock has moved up by 74% since our last update in Feb’25. We thus downgrade the stock to Neutral from Buy and would look for better price points to enter the stock.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.