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Zen Technologies Declines 30% In Two Days, Hits Lifetime Low On Earnings Report

Zen Technologies share price declined by 10%, following a 20% drop on Monday, after the company announced its third-quarter earnings, which fell short of analysts’ expectations.

<div class="paragraphs"><p> Shares of Zen Technologies fell as much as 30% in two days (Photo source: Company)</p></div>
Shares of Zen Technologies fell as much as 30% in two days (Photo source: Company)
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Zen Technologies Ltd.‘s share price continued its downward slide for the second consecutive day, hitting a lifetime low on Tuesday. The stock declined by 10%, following a 20% drop on Monday, after the company announced its third-quarter earnings, 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, a leading provider of defence training solutions, reported an EBITDA of Rs 44.2 crore, a modest increase of 4% from Rs 42.5 crore year-on-year. This figure also missed the market estimate of Rs 100.5 crore, and 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. However, the recent earnings miss has raised concerns about its ability to meet market expectations and sustain its growth trajectory.

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Zen Technologies Declines 30% In Two Days, Hits Lifetime Low On Earnings Report

The scrip fell as much as 10% to Rs 972 apiece. This compares to a 0.13% decline in the NSE Nifty 50 Index.

It has risen 20.65% in the last 12 months. Total traded volume so far in the day stood at 11 times its 30-day average. The relative strength index was at 16.

Four analysts tracking the company maintain a 'buy' rating for the stock, according to Bloomberg data. The average 12-month consensus price target implies an upside of 103%.

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