Shares of Zen Technologies rallied 12 percent to hit a 52-week high of Rs 107.75 on the BSE in intra-day trade on Friday, 27th August 2021, on the back of heavy volumes. The stock of the defence company has zoomed 30 percent in the past three trading days.
Earlier in the Friday morning, it was trading 9 percent higher at Rs 104.70, as compared to a 0.38 percent decline in the S&P BSE Sensex. The trading volumes on the counter jumped over seven-fold, with a combined 0.91 percent of the total equity has changed hands on the NSE and BSE so far.
India’s defence industry is well-positioned to grow leaps and bounds at the backing of the aggressive policies that favour indigenous sourcing. The Ministry of Defence (MoD), through its various schemes, has boosted this process and indigenization is taking place at a component, system, and subsystem level.
Defence exports in the country witnessed strong growth in the last two years. India targets to export military equipment worth US$ 5 billion (Rs 35,000 crore) in the next five years, Zen Technologies said in the financial year 2020-21 (FY21) annual report.
Zen Technologies is engaged in manufacturing land-based military training simulators, driving simulators, live range equipment, and anti-drone systems, and has its own training platform to provide a real battle experience by integrating its entire range of product offerings.
Anti-drone systems, drones, and training solutions will continue to be the core business of Zen Technologies and the company has all the simulators required for the legacy equipment used by the Indian Army, it said.
The company expects its exports to accelerate since the past efforts will finally render its effect. Apart from this, Zen Technologies is driven to make further progress by focusing on large export opportunities within the Middle East, CIS, and Africa. The company is dedicating a core team to pursue business opportunities in the USA and other friendly countries and looks forward to further enhancement in the AMC revenue stream, which is non-cyclical, the company said.