Zen Tech Surges on Bullish Choice Equities Call: Rs 2150 Target Set

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AuthorIshaan Verma|Published at:
Zen Tech Surges on Bullish Choice Equities Call: Rs 2150 Target Set
Overview

Choice Institutional Equities reiterates a BUY on Zen Tech, setting a Rs 2,150 target. The firm highlights strong order momentum, with INR 1,427 Cr secured, and anticipates steady near-term growth driven by an expanding order book and favorable trade agreements. Management's pragmatic approach to revenue guidance is seen as a positive reset.

Analyst Reaffirms Confidence in Zen Tech

Choice Institutional Equities has maintained its BUY recommendation on Zen Technologies, signaling strong conviction with a target price of INR 2,150. This valuation implies a 35x FY28E Earnings Per Share multiple, reflecting expectations of substantial future earnings growth. The brokerage firm views Zen Tech's management as pragmatic, prioritizing execution over aspirational commentary. This shift is evidenced by a proactive downward recalibration of FY27-28E revenue guidance to approximately INR 4,000 Cr, a move aimed at resetting investor expectations rather than signaling demand weakness.

Order Book Bolsters Near-Term Outlook

The company's order momentum has significantly re-accelerated. Over the past four months, Zen Tech secured new orders totaling approximately INR 930 Cr. This influx has bolstered the total order book to around INR 1,427 Cr, representing 1.5 times its FY25 revenue. Crucially, about INR 1,100 Cr of this order book is executable within the next 12 to 18 months, positioning the company for consistent near-term expansion.

International Expansion and Stock Re-rating Potential

Looking ahead, Choice Institutional Equities anticipates a marked acceleration in both order inflows and execution through FY27-28E. Key catalysts include the EU-India trade agreement, which promises unrestricted access to Western markets, and robust interest from other international clientele. This strategic advantage is expected to drive not only earnings recovery but also a potential re-rating of the stock. Following a recent market correction, Zen Tech is now viewed as an attractive investment within India's burgeoning defense technology sector.

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