Issue #020 examines Zen Technologies & its ambitious growth trajectory until FY27. We explore revenue projections, order book, margins & market opportunities to evaluate it's investment potential
Yes, the ₹1,200 crores is the critical number. It's like their "all-in" moment in blackjack, they put all their cards on receiving enough orders in Q4. The markets will not be kind to them if they don't come close to that number by Q4 or max. by Q1FY26
Great insights as always! Thank you for this detailed research on Zen Technologies—it truly boosts my confidence in the stock!
As a beginner in equity research, I’m still learning, but I firmly believe in Zen Technologies’ long-term potential. I initially entered at ₹839 on 05-Feb-24 and booked a profit at ₹1182.05 on 25-Jun-24, securing nearly 40% gains. Later, I re-entered at ₹1920 on 04-Nov-24 and averaged down at ₹1670 on 30-Jan-25. While my position is currently in negative gains, I remain optimistic given its strong fundamentals and sector growth.
Once again, thank you so much for your insights—they are truly helping me understand the depth of analysis and shaping my perspective!
Most welcome. You raised a good point on long-term orientation. The next two quarters are very crucial for Zen Technologies. Notice from the quarterly orderbook table I posted - the company has been enjoying the fruits of a few big orders some 5-6 quarters back. I understand that's how the defence industry works but it does offer a bit of timing risk here. If Zen Tech doesn't receive the big orders of ₹1,200, Mr. Atluri has been talking of -- then growth will get stalled at 0% so that's an important metric to watch out for
Thank you, Your emphasis on the importance of securing substantial orders in the upcoming quarters is well noted. As of September 30, 2024, the company's order book stood at ₹956.74 crores, indicating a strong position.
Recent developments, such as the unveiling of advanced anti-drone and combat solutions at Aero India 2025, and the launch of an airborne killer drone system, demonstrate Zen Technologies' commitment to innovation. However, the company's growth remains contingent on securing the anticipated ₹1,200 crore orders.
I will closely monitor these developments in the upcoming quarters. Your guidance has been invaluable in shaping my understanding of the company's trajectory.
Looking at the rapid changes in battlefield drones are now playing a large role, so the anti-drone defence option are very important for every nation especially India. With respect to that Zen Tech can become a very big defence company sitting at the same table as HAL, Mazgaon Dock etc. 15 years down the line this company has the potential to become a multibagger.
Shankarji, a quick high-level question for you! In one of your recent interviews, I learned that the bulk of your portfolio is in mutual funds. Would it be fair to assume that the individual stocks you research and share here make up your satellite portfolio, accounting for around 15-20% of your total investments?
Also, as a huge fan of your deep-dive research, I can’t help but wonder—why not go 100% into individual stock picks, given your expertise? Beyond risk management, are there any other key reasons behind this approach?
And as our community continues to grow, it would be insightful to understand how you allocate your investments—what percentage do you typically assign to each of these companies? Would love to get your perspective!
1. Yes, stocks are currently at 18% of my investment portfolio, MFs are the rest. This numbers was a lot lower a few years back but as now, I'm able to spend time in reading/researching stocks I find it prudent to continue upping this number. Over the next 2 years, I want to take the stock portfolio to 25%
2. I'd like to skip the "why not 100%" bit. While the question itself is harmless, I feel someone's investment portfolio/approach is a personal choice based on their circumstances & they shouldn't have to justify it. My apologies!
3. Sure, I don't mind presenting factual information i.e. allocation across asset classes, stocks, which mutual funds etc.
Zen Technologies is presenting it's Q3FY25 results on the 14th of February (Friday)
More than the results, I'm keen on knowing the order book
Pls note -- Zen Tech needs around ₹1,200 crores of new orders by Q4 to make good on it's 50% growth guidance for FY26
Let's watch out for that metric
They could'nt get new orders this quarter....written in their investor presentation.....let's hope this changes in q4...
Yes, the ₹1,200 crores is the critical number. It's like their "all-in" moment in blackjack, they put all their cards on receiving enough orders in Q4. The markets will not be kind to them if they don't come close to that number by Q4 or max. by Q1FY26
Today they bagged a 152 cr order from the Ministry of Defence...keeping a close watch!
Yes. They have to do a lot more than that on the order front & fast!
They only bagged an annual maintenance contract worth 1.69Cr in Q3FY25, as opposed to the 100Cr guidance.
Pranam Shankar ji, As always making your posts / YT videos a priority for a reason. Kudos for your hard work in finding Quality stocks for us. Thanks.
Thank you very much Mr. Manickam 🙌
Thanks you Shankar ji for another excellent analysis 👍
Thank you Praveen ji 🙌
Thank you
Most welcome
Great insights as always! Thank you for this detailed research on Zen Technologies—it truly boosts my confidence in the stock!
As a beginner in equity research, I’m still learning, but I firmly believe in Zen Technologies’ long-term potential. I initially entered at ₹839 on 05-Feb-24 and booked a profit at ₹1182.05 on 25-Jun-24, securing nearly 40% gains. Later, I re-entered at ₹1920 on 04-Nov-24 and averaged down at ₹1670 on 30-Jan-25. While my position is currently in negative gains, I remain optimistic given its strong fundamentals and sector growth.
Once again, thank you so much for your insights—they are truly helping me understand the depth of analysis and shaping my perspective!
Most welcome. You raised a good point on long-term orientation. The next two quarters are very crucial for Zen Technologies. Notice from the quarterly orderbook table I posted - the company has been enjoying the fruits of a few big orders some 5-6 quarters back. I understand that's how the defence industry works but it does offer a bit of timing risk here. If Zen Tech doesn't receive the big orders of ₹1,200, Mr. Atluri has been talking of -- then growth will get stalled at 0% so that's an important metric to watch out for
Thank you, Your emphasis on the importance of securing substantial orders in the upcoming quarters is well noted. As of September 30, 2024, the company's order book stood at ₹956.74 crores, indicating a strong position.
Recent developments, such as the unveiling of advanced anti-drone and combat solutions at Aero India 2025, and the launch of an airborne killer drone system, demonstrate Zen Technologies' commitment to innovation. However, the company's growth remains contingent on securing the anticipated ₹1,200 crore orders.
I will closely monitor these developments in the upcoming quarters. Your guidance has been invaluable in shaping my understanding of the company's trajectory.
Thank you Shankar for insightful analysis.
Most welcome 🤗
I have recently come across your newsletter Mr Shankar and i must complement you on its structure and simplicity(easy to understand)
Thank you so much 🙌 I'm glad you like my writing style
Thank you for sharing this article Shankar sir.
Most welcome. Glad you found it useful
Wonderful article Mr. Shankar . It was simple enough for a novice like me. Thanks
I am glad you liked it Sandeep ji 🙌
Thanks for newsletters!!
Most welcome 🙌
Thx Shankar for the wonderful writeup. I am invested in Zen. Your writeup increased my conviction.
I am big fan of you.
Thx a lot.
👍👍👍🙏🙏🙏🙏
Glad you liked it. The Q3 & Q4 orderbook position is a crucial variable -- it'll determine how good or how bad FY26 shapes up for them
Please provide an update on Skygold as it posted very good Q3 results.
Email is scheduled for February 22nd
Looking at the rapid changes in battlefield drones are now playing a large role, so the anti-drone defence option are very important for every nation especially India. With respect to that Zen Tech can become a very big defence company sitting at the same table as HAL, Mazgaon Dock etc. 15 years down the line this company has the potential to become a multibagger.
I am following Zen from 700 - 800 range but it moved so fast didn't got a chance to buy , I think it will be a very good chance buy this counter now.
great in sights
Thank you!
Shankarji, a quick high-level question for you! In one of your recent interviews, I learned that the bulk of your portfolio is in mutual funds. Would it be fair to assume that the individual stocks you research and share here make up your satellite portfolio, accounting for around 15-20% of your total investments?
Also, as a huge fan of your deep-dive research, I can’t help but wonder—why not go 100% into individual stock picks, given your expertise? Beyond risk management, are there any other key reasons behind this approach?
And as our community continues to grow, it would be insightful to understand how you allocate your investments—what percentage do you typically assign to each of these companies? Would love to get your perspective!
Hello.
1. Yes, stocks are currently at 18% of my investment portfolio, MFs are the rest. This numbers was a lot lower a few years back but as now, I'm able to spend time in reading/researching stocks I find it prudent to continue upping this number. Over the next 2 years, I want to take the stock portfolio to 25%
2. I'd like to skip the "why not 100%" bit. While the question itself is harmless, I feel someone's investment portfolio/approach is a personal choice based on their circumstances & they shouldn't have to justify it. My apologies!
3. Sure, I don't mind presenting factual information i.e. allocation across asset classes, stocks, which mutual funds etc.
I appreciate the clear and honest update. Thanks !