haha so i was wrong with the Lower circuit 
Even below comments from Chairman published last night, couldnât saved it to go to lower circuit.
I still see some recovery post few days/concall.
Note: Biased, will continue to hold until my target price. Added more.
Donât catch a falling knife is my thesis now specially with overall bearish sentiment on the street.
PS: invested
In my view, one should wait to see how the order book builds up. All defense stocks have run up too much since May and given the overall market structure has turned a bit weak, we might get better prices and valuation.
yes, as just completed with con call, they will delivering Zentech benchmarked EBITDA i.e. 35% and PAT 25%, however significant growth is expected next year and this year will be muted.
They are doint everything right buisness wise -
Orders will come soonâŚ
Personally I would be a little careful with investing more money in Zen especially after BEL secured fresh defence orders totaling approximately âš537 crore for Simulator upgrades, test rigs etc. Most of the contract that was awarded to BEL could have also been distributed with ZEN. This doesnât sit well with me.
Hi. Could you please post link to the orders won by BEL. I do not track BEL. So wasnt aware of this development.
https://www.business-standard.com/companies/news/bharat-electronics-secures-orders-worth-537-crore-for-ship-upgrades-125060400995_1.html
Not to worry. These are ship based simulators while Zen dabbles in land and air based simulators. Though this will change now with their acquisition of ARI so they should be competitors
I am invested in this stock for the last two years and I believe in the Indian Demand for ADS and Simulators. I also believe there is huge demand for these systems from smaller nations who have a lower Defense Budget. However, I have always seen only the management boast about their products. I would be happy to believe that they are the best in the industry but the indicators that suggest so are absent. If they are infact the very best and efficient, it should reflect in their order book. Even after the Emergency Procurement Budget of 40,000cr was announced, of which approx 2000cr was marked for ADS, we havenât seen anything that suggests there is a demand for ZenTech Products. It is possible that because these are government contract there is a delay in finalizing, but it created a little doubt in my mind.
Secondly, I have never seen any one from the Army or Experts talk specifically about Zentech and its products. Maybe they have but I havenât came across them till now but if there are no testimonies, I think following the managementâs guidance blindly will lead to problems. One supporting data is, in their concall Mr Atluri said thuy have received only 64cr worth of orders for the ADS while the rest 100cr odd figure is for simulators.
I had invested last year in Jan, and since then had 3xed my money, so I took out my initial capital. So I donât mind staying invested for a very long time but these are certain points I think about.
