Multibagger defence stock falls over 9%, what's next? 

Shares of Zen Technologies Ltd fell over 9% on Monday amid correction in the broader market. Zen Technologies stock slipped 9.26% to Rs 2230 on BSE. The stock hit a 52 week low of Rs 687.70 on January 24, 2024 and a 52 week high of Rs 2627.95 on BSE. Total 0.21 lakh shares of the firm changed hands amounting to a turnover of Rs 4.87 crore. Market cap of the firm slipped to Rs 20,471 crore on BSE. The multibagger stock has risen 191% in a year and gained 1071% in two years

The correction in the stock came despite the firm announcing that the firm has approved an investment(s) in M/s. Zen Technologies USA, Inc, a wholly owned subsidiary of the company, up to USD 10 million, in one or more tranches. 

In terms of technicals, the relative strength index (RSI) of Zen Technologies stands at 59.3, signaling it's trading neither in the overbought nor in the oversold zone. Zen Technologies stock has a one-year beta of 0.9, indicating average volatility during the period. Zen Technologies shares are trading lower than the 5 day, 10 day, 20 day, 30 day but higher than the 50 day, 100 day and 200 day moving averages.   

Brokerage Motilal Oswal has a buy rating on the stock with a price target of Rs 2,750. 

"We expect revenue to continue on a sharp incline on account of strong execution of orders in both domestic and export markets.  Key monitorables include order inflows for both training simulators and anti-drones in domestic and export markets in the following years, as well as working capital days expected to return to normal levels. We revise our full-year estimates on lower tax rate assumptions and increase our target price based on March’27 EPS," said the brokerage.

ICICI Securities also has a buy call on the defence sector stock. 

Zen Technologies Limited designs, develops, and manufactures defence training systems, based on sensors and simulators technology. The company’s category of products includes land-based military training simulators, driving simulators, live range equipment and anti-drone systems. The company also has a training platform in Hyderabad, with an integration of its complete product range. Its Anti-Drone System (ZADS) system works on drone detection, classification and tracking on passive surveillance, camera sensors and neutralization of threat by jamming drone communication.