Zen Tech shares soar on strategic pact with Florida-based simulation company

Zen Tech had recently presented advancements at I/ITSEC 2024 event, which helped the company strengthen ties with US defense industry players, explore co-development initiatives, and ramp up export opportunities.

Defense training and anti-drone solutions provider Zen Technologies has signed up with US-based AVT Simulation in a 'strategic push' into American market, sending shares higher by close to 3% in mid-day trade.

This alliance integrates Zen’s technologies with AVT’s expertise in offering customised simulation systems for defense, emergency response, and commercial applications, said the company. AVT Simulation has over 25 years of simulation experience. There has been a surge in demand for for immersive, cost-effective training platforms in America, and Zen Tech is hoping to corner a part of that pie.

Over the past five years, US imports of Indian defense technologies has crossed $2.8 billion, with a focus on counter-drone systems, AI-driven platforms, and simulation. “Partnering with a proven company like Zen Technologies will greatly enhance our solutions and improve the effectiveness of Warfighters,” Kyle Crooks, CEO of AVT Simulation said.

Zen Tech had recently presented advancements at I/ITSEC 2024 event, which helped the company strengthen ties with US defense industry players, explore co-development initiatives, and ramp up export opportunities.

Zen has recently secured patents for its "Tank Containerized Crew Gunnery Simulator" and "Infantry Virtual Training Simulation System (IVTSS)", apart from launching AI-powered robotic solutions.

Nuvama Institutional Equities is bullish on Zen Technologies, with a target price of Rs 2,200, citing the company’s strong potential in India's growing defence sector. Nuvama projects strong order inflows for Zen Tech, with a CAGR of over 36 percent from FY24–27, alongside an operating profit margin (OPM) of 33–35 percent.

The company recently secured an Indian patent for its advanced T-90 simulator. Zen Tech has said in the past that under the likely policies of President-elect Trump, the US market offers opportunities in manufacturing of products it is supplying to US.

With an order book exceeding Rs 1,400 crore as of March 31, the anti-drone technology and defence training solutions provider expects to see sustained growth in FY25, aiming to surpass the Rs 900-crore sales mark.