Dear investors
Today I am expressing view on company actively working in training and simulation area, stock listed in NSE and BSE. ...... Zen technologies
Zen Technologies was incorporated in the year 1993 with an
aim to develop state-of-the-art training simulators for weapons and
allied defence equipment. The company went public in the year 2000. It
has been a profit-making and dividend-paying company since long. Face
value of stock is 1 rs
Zen, over the years, has developed expertise in designing,
developing and manufacturing various types of simulators. The products
developed in-house not only meet all qualitative standards but also are
cost-effective.
The company has supplied over 450 simulators to over 100
customers. Its customers are located across the length and breadth of
the country. Its main customers are Defence, Services, State Police
forces, Para Military forces and the Navy of a South-East Asian country.
The goal of the company is to develop world-class
simulators. The company attaches special importance to its R and D
activities. The R and D division has sophisticated software tools and
skilled manpower.
Zen has AS9100C from DQS Inc., ISO 9001:2008 (QMS), ISO 14001:2004 (EMS), ISO/IEC 27001:2013 (ISMS) certifications.
Zen Technologies is having developed advance technology and expertise.
The R and D unit at B-42 Industrial Estate, Sanathnagar
(Hyderabad) is recognized by the Department of Scientific and Industrial
Research, Ministry of Science and Technology, Government of India.
Rational
Promoter holding 59.44 % stake and company posted 44.5
cr top line and 6.2 cr (tax adjusted figure) bottom line in latest 9
month ended 2016-17. Few ace investors i.e. ashish kacholia and mukul
agrawal hold stake in company. It is niche sector where opportunity will
be arises in coming time due to government interest and safety of
country. In next two quarter may give good top line and bottom line,
also this stock is not participated recent stock market bull rally.
Stock trading both NSE and BSE @ 71. Expecting some big order
announcement in coming time.
Conclusion
The Govt of India's make in india movement and emphases towards Defence Sector boost has created ample opportunities of players of defence sector and especially Zen Technologies. Zen has potential to become multibagger in long run.
Disclaimer : I am holding stock of Zen Technologies.
NOTE : THE ABOVE IS NOT A RESEARCH REPORT NOR A RECOMMENDATION BUT INFORMATION AS AVAILABLE ON PUBLIC DOMAIN.
Registration status with SEBI: I am not registered with
SEBI under the (Research Analyst) regulations 2014 and as per
clarifications provided by SEBI: “Any person who makes recommendation or
offers an opinion concerning securities or public offers only through
public media is not required to obtain registration as research analyst
under RA Regulations”
Nice write up excellent pick
ReplyDeleteThanks dear
ReplyDeleteBoss,One doubt me,may i hold for short term(45day) or hold for long term only.
ReplyDeleteShort term it depends on Market Condition. I suggest hold it with patience and conviction. Long term it may give unbelievable return. Just check its share holding pattern. Giant Investors like Ashish Kacholia, Mukul agrawal also holding big
ReplyDeleteExcept Last quarter results previous results nad and orders also not impressive and future plans also not clear..what is the basis for this suggestion..except that it has not participated in recent rally..FYI..I am holding as well but without much conviction...
ReplyDeleteAt present company has 200cr order of Tank simulators in advanced stage of commercial negotiations, while 300cr repeat order also expected within 8 months.
ReplyDeleteIf you see last year FY 2016 for sales of Rs. 52 crores their EPS was near zero. This is because Rs. 50 crores is their breakeven point. In 2012 when they had achieved a turnover of 100 odd crores and their profits were 31.57 crores, So basically for the incremental sales above 50 crores they earned 31 crores in profit so for each incremental rupee of sales above Rs 50 crores they earned 60 % in profits, this is classical operating leverage. Now with the above projected order book their profits should form a classical J curve. So suppose they do clock 500 crores of turnover over the next one year 60 % of the same will directly flow into profits which comes to 300 crores giving an EPS of above 30.