Zen technologies - A micro cap in the defense space!

Can some one please explain what is the meaning for the Cash flow entry please, where they have shown ‘Increase or Decrease of Cash Balances’ . I am not a expert at reading Balance sheet

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Cashflow statement Basically shows the movement of actual cash due to various activities happening in company now the part which you have highlighted the figures which are in bracket , it denotes that ,the particular amount has been used for various investing purposes (means cash outflow & inflow due to transactions made by company which can be attributed to investing purposes, ) , it includes both entries ( means both debit & credit entries) means if company bought any land or machinery say for example rs 10 crore then company should have paid cash so cash outflow,that will be shown here , now company could have also sold some investment means sold any machine or land etc say for 5crore now this should bring cash inflow in company , so adjusting for both of these it results into outflow of cash to the tune of rs 5crore(10 crore- 5crore) that’s why it is written there "Cash from/used in investing activities

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As I allude earlier it will hard to cross 1050 even after results bcoz they need big orders win mark my words if they didn’t get orders worth 2000 cr this year be ready for derating as market discounts future everyone now’s about 900 cr sales in FY2025 but whats next. Keen to see what management says today but as per my experience they always give rosy pictures

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Latest interview. 900Cr topline re-confirmed.
Regards,
Raj
Disc: Invested.

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Thank you for the explanation.

All I wanted to understand is where was the 60 crores spent pls?

Because I can see a seperate line item for capex spent, dividend given to share holders ,inventory and receivables. If you have an understanding on what was the reason for 60 crores expenditure, can you please explain that

increase/decrease in other bank balance - it includes following items
1)balances with banks for unclaimed dividend
2) deposits against bank guarantees
3)fixed deposits

You can find this from zen technologies annual report , in annual report they give the explanation note/account for “what are the items included in other bank balance” , you can also find for other line items for which explanation has not been given in Quaterly results

I hope it clears your doubt

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Thank you so much .That clears my query

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Has the management told about this poor cash from operstions this year. Is this trend likely to continue this FY too @Manojlion

Pls help to under stand this. Is it better to exit or hold as per your view … due to this poor cash from operation performance. Asking as I am also invested.

If China Taiwan war happens Zen will unable to complete order as all the chips are imported from taiwan , although management say we are not that much depended but the harsh reality is that they are depended on taiwan for all microprocessor

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If this war happens, forget Zen Tech, you can say goodbye to world economy and equity markets for half a decade.

Imagine Russian-Ukraine war commodity issues, and multiply by 100.

Everything from plastics, pharma API’s, chemicals, electronics and microprocessors etc will be disrupted.

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Management clearly stated that risk in q3/q2 concall…

If current govt comes in power then the stock is available at cheap valuation, 850 cr sales with OPM 35% min we are looking at 25 RS Eps and we will have 2000 cr order book if BJP comes back otherwise very difficult to get same movement as past.

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I am also feeling sad as i also have major holding of pf into zen, but the harsh realty is that NDA government will face lot of restriction in spending into renewable, defense etc. and i see major spending into other sectors / freebees so surely sector rotation will happen, so it will be difficult for zen to get domestic order and de rating of PE will happen if no new order received. Second order of 700cr from govt may get cancel . So eventually if we consider best case 30-40 PE this sector will get, if we consider best case if order dont get cancel 900cr sales 25 EPS 30*25=750 rs after 1 year.
Technically 890 is major support for the stock & the way selling order are there it will break and next major support is at 800.
Hope is Budget if government continues its focus into Defense sector & we see major portfolio with BJP.

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Defence Sector cannot have reduction. Maybe player will change. All parties realize you have an giant neighbour breathing down your neck. CBN and Nitish are not soft on defence. CBN is infact a reformist and growth-oriented policy politician.

As to share price and individual players, anything is possible.

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Zen Technology delivers Hard Kill Anti Drone system (ADS HK) to Army Defence College thats responsible for training Indias Air Defence Corps. The order was placed 18 months ago.

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Press release on Hard Kill

New Patent sanctioned for TZS (Laser Boresighting)

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“But with the ground to the year, we don’t see any slowing down at all. The aggression is more that we should buy more Indian IP developed products. Everything is absolutely on track.”

“But whether it is exports or it is domestic, we have actually almost disconnected with this percentage wise growth. The growth is happening in such phenomenal way that when I say 50% people within my company laugh that this guy is setting a bar low so that he can easily jump.”

Disc, invested

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News about Man Portable Counter Drone System (MPCDS), developed by AXISCADES.

https://www.financialexpress.com/business/defence-indian-army-gets-indigenous-man-portable-counter-drone-system-3520311

“Ministry of Defence and Defence Forces have outlined plans to enhance their Counter UAV capabilities through multiple tenders, including emergency procurements, with an estimated addressable opportunity of Rs. 3,000 crores within India alone over the next five years. AXISCADES remains a key player at the forefront of this initiative, with the company strengthening its Counter-Unmanned Aerial Vehicle (C-UAV) offerings with integrated sensors and neutralisation options, solidifying its position to capture both domestic and global market opportunities.”

Disc, invested

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If the order was placed 18 months ago then current order book is a real concern, they do not have the orders in place to ensure growth in FY 26.