Orde book is not good, any idea when order will inflow will come ? 2000cr looks difficult
Q4 results look optically good. But main worry is negative operating cash flow, mainly due to working capital.
Does anyone know what is this entry - Increase in Other Non Current Financial Assets
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Money raised in QIP utilized as per table given below:
Fund raised was reflected in Share Capital and other equity
The QIP money was parked in Bank Accounts and fixed deposits and spend in acquiring various assets. The movements in Bank accounts and deposits are provided below:
Increase in Other Non Current Financial Assets represent amount deposited in Bank Deposits more than 12 months. In my opinion, It is an investing activity or treasury Activity. This should be grouped under investing activity.
Accordingly, Cash flow are recasted and given below
According to me, There is no major change in operting cash flow even though the revenue and net profit improved significantly.
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Good point noticed the same, why cash flow from financing activity is som much higher.
Does it mean company has no clear expansion or growth plan ?
Pretty weird for a high-tech co to just be spending 3% of revenue on R&D?
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I mean it’s not software or pharma … Lockheed Martin spends around 2% of revenue on RnD. On CFO side trade receivables have doubled YoY but so has sales so it’s not as bad as it seems. The main issue is order intake. Hoping for the best
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They had also guided for orders in q3-q4. It is their job to be optimistic.
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What the operation spider web has done is reinforcing the significance of drones in any warfare. Additionally, it should also remind the policy makers of the importance of anti-drone mechanism. Perhaps in spiderweb the Russians could not have done much because the drones were launched from very close to the facilities. But in any other case, any country not adequately prepared with anti-drone tech is practically naked. https://www.eletimes.com/top-10-anti-drone-companies-in-india
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Will India’s anti-drone technology fly on the global stage?
What is a counter drones strategy ?
Well, they aren’t a single piece of tech. There’s radar to detect low-flying objects. Radio frequency (RF) scanners to intercept command signals. Jammers to scramble navigation. Electro-optical sensors to track movement. And lasers or micro missiles to take drones down, if needed. All of it, stitched together into a single system that can react in seconds.
What is loitering munitions?
These are also called Kamikaze Drone or suicide drones.
which are designed to attack targets by crashing into them.
Soft kill vs Hard kill
Soft kill” (one that jams the drone signals) and “hard kill” (one that shoots the drones down using laser-based destruction)
Swarming Drone
swarm drone refers to a group of two or more pdrones, that operate together in a coordinated and autonomous manner to achieve a common objective. These drones utilize communication and collective intelligence to perform complex tasks, often mimicking natural patterns like bird flocks or bee hives.
predator drones
provide persistent intelligence, surveillance, and reconnaissance (ISR) capabilities, alongside the ability to conduct targeted strikes.
D4 anti drone strategy is one of the systems developed by DRDO that was recently used in Operation Sindoor to neutralise swarms of Turkish drones launched by Pakistan.
And more systems followed.
Grene Robotics developed Indrajaal, an AI-powered drone dome that can autonomously detect and neutralise threats across 4,000 sq km.
Solar Industries built Bhargavastra, a portable missile system for targeting swarms.
Zen Technologies began shipping integrated detection and jamming suites.
Even Axiscades stepped in with India’s first man-portable drone jammer.
And HFCL, once a telecom infra company, began developing radar systems for drone detection, and bagged a deal to supply parts to America’s biggest drone maker.
In short, what started as a defence emergency quickly snowballed into an industry. And it has also turned the Indian defence sector from a buyer to a builder, and, slowly, an exporter of counter drone systems. For instance, Taiwan is currently seeking to purchase India’s D4 anti-drone.
Discl : Not a buy oe sell recommendation. only for educational purpose. I may be biased as I have investments in a basket of defence stocks since last 3 years. My defence basket includes Zen , Paras , BEL HAL, Data pattern and 3 defence shipping stocks.
Defence stocks are highly volatile.
Please do your own assessment before buying any stocks from the given list.
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Very informative. Thanks.
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I mean wasn’t that obvious for anybody who are long timers in the stock? Zen is absolutely not the kind of company that can be looked at strictly from a QoQ or YoY lens. The results are more better than I anticipated. Hopefully they have many orders in pipeline as conversion is still very slow.
Hope the conference call gives out some useful information.
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@abhishek_singh11 It’s really not as bad as a lower circuit would suggest. If you recall, the last concall conveniently held right after that sharp fall seemed somewhat intentional (in my eyes), and it helped rebuild confidence in the stock which did show some recovery afterwards.
As @Aloysius_De_Sa rightly pointed out, with that idea and now in my words - this isn’t an FMCG business where you can judge performance QnQ. The nature of their operations doesn’t allow for such linear comparisons. What stood out in the last concall was the strong order pipeline expectation, which gave many of us a reason to stay optimistic. Let’s see what the upcoming concall brings. Until then a bit of price volatility is probably something we will have to ride through.
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This came about 2 months back, but it is still of relevance for investors in Zen, post its quarterly results.
Disclaimer: Invested.
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The interview was uploaded in July.
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