Zen Technologies shares slipped over 7 percent after the firm saw a block deal worth Rs 386.1 crore take place in the early session on December 3.
About 21.4 lakh shares, which is around 2.55 percent equity stake in the firm, changed hands at about Rs 1,800 per share. From the previous session's closing price, this comes at a discount of 5.9 percent.
Moneycontrol could not immediately ascertain the buyers and sellers in the deal.
At 10.45 am, Zen Technologies shares were quoting Rs 1,826.1 per share, lower by 4.5 percent on the NSE.
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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.
India's aim to achieve Rs 3 lakh crore in defence production and Rs 50,000 crore in exports by FY29 will drive the need for value-added manufacturing. Zen Tech is could benefit from this shift, being one of the key suppliers of defence simulators that strengthen the armed forces' preparedness.
Zen Tech's growth strategy is driven by its in-house intellectual property, supported by over 75 patents, and its advanced anti-drone systems. 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. This is expected to result in more than 54 percent EPS growth and a return on equity (RoE) above 22 percent.
Over the past year, shares of Zen Technologies have galloped 136 percent on the bourses, as against the Nifty 50's run of around 17 percent.
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