Zen Technologies wins Rs 340 crore order from Armenia last week for Anti-drone System.
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I think this is the export order reported in June/July and not new order?
Another Export Order worth 48 Crore, this time for Training Simulators:
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Fantastic guidance by Zen. Valuations are something to look at.
if they do what they just said - they are 6800 cr Mcap currently
1000Cr Px/Sales it looks expensive
But 35% EBITDA - At 350Cr Ebitda with 0 Debt - They are trading at less than 20 times EV/EBITDA. Peers like BEL are trading at much higher valuations.
#ZenTech UC 5% - i would like to assume this interview commentary is the reason coz i mean just watch the interview. news Anchors had their ears up.
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The Indian Army has placed orders for two of these drones from the firm under emergency provisions that mandate that the systems supplied by vendors should be more than 60 per cent indigenous and should be under the ‘Make in India’ in Defence.
I am not sure which company got this order
Read more at:
Drishti-10 drones: Indian Army to deploy Drishti-10 drones near Pakistan border in Punjab - The Economic Times?
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Amazing growth + maintaining high margins, without bank debt for a small company with high working capital cycle/requirements.
Q3 ppt https://www.bseindia.com/xml-data/corpfiling/AttachLive/ad9e52cb-9f23-4767-a501-78287813e869.pdf
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Got to speak to a close friend who works in developing anti drone solutions. He had met Zen guys in an army cantonment in the North for a demo. His feedback - Zen and aidintech are importing all the hardware for the drones and only assembling them in India which is what the CEO of Zen also corroborated. He also said that the firmware which goes on these is also imported from Bulgaria/Malaysia and these companies have people who just fiddle with it and do small changes here and there. In essence, these are just assemblers and don’t have any in house IP as such. But in the absence of anyone else in India, they are winning the contracts. It’s more to do with no other options available than anything else as of now. Track 1 from Indian govt allows you to assemble in India and sell it to the Defence. This also explains the lack of core tech talent in these companies.
Disc - Not invested and tracking
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Yes. But out of 1400cr order book, ~650 cr is antidrones which seems like a commodity play since it’s import, assemble and sell.
ok…thanks for your insight.
Who are the other anti-drone players any idea?
I read recently that UP police bought some anti-drone system from an Israeli vendor.
Regards,
Raj
Disc: Invested
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An insightful article on the company Zen Technologies Ltd.
https://www.thryvv.in/article/zen-technologies-ltd-a-defence-company-worth-looking-at/