Multibagger alert: This small-cap company from the defence space nearly tripled investors’ wealth in the last two years!

Multibagger alert: This small-cap company from the defence space nearly tripled investors’ wealth in the last two years!

Stock Recommendations
by 5paisa Research Team Last Updated: 2022-09-19T12:43:37+05:30

An investment of Rs 1 lakh in the shares of this company two years ago would have turned to Rs 2.77 lakh today.

Zen Technologies Ltd, an S&P BSE SmallCap company, has delivered multibagger returns to its shareholders in the last two years. During this period, the company’s share price jumped from Rs 75.55 on 22 September 2020 to Rs 210 on 16 September 2022, an increase of 177% in the two-year holding period.

An investment of Rs 1 lakh in the shares of this company two years ago would have turned to Rs 2.77 lakh today.

Meanwhile, the S&P BSE SmallCap index, of which the company is a part, gained 101.2%. In the last two years, the index has climbed from the level of 14,509.26 on 22 September 2020 to 29,199.39 on 16 September 2022.

Zen Technologies Limited designs, develops and manufactures state-of-the-art combat training solutions for the training of defence and security forces worldwide. The company is headquartered in Hyderabad, India with offices in India and USA. Zen Technologies produces various Live Fire, Live Instrumented, Virtual and Constructive training systems to support individual and collective training capabilities. It is a proven leader in building training systems for developing and measuring Combat Readiness.

In the recent quarter Q1FY23, on a consolidated basis, the company’s net revenue increased by 272.10% YoY to Rs 37.07 crore. During the quarter, the bottom line turned from a loss of Rs 1.57 crore to a profit of Rs 7.03 crore.

The company is currently trading at a TTM PE of 176.84x, as against the industry PE of 25.4x. Today, the scrip opened at Rs 218.30 and has touched a high and low of Rs 219.35 and Rs 213.50, respectively. So far 37,629 shares have been traded on the bourses.

At 12.05 pm, the shares of Zen Technologies Ltd were trading at Rs 215.20, an increase of 2.5% from the previous closing price of Rs 210 on BSE. The stock has a 52-week high & low of Rs 257.70 and Rs 144.45, respectively on BSE.

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