Buy Zen Tech; target of Rs 2150: Choice Institutional Equities

Choice Institutional Equities is bullish on Zen Tech has recommended buy rating on the stock with a target price of Rs 2150 in its research report dated February 03, 2026.

Broker Research

February 03, 2026 / 10:58 IST

Buy

Choice Institutional Equities's report on Zen Tech

We interpret management’s tone as measured and pragmatic, shifting decisively from aspirational commentary to execution-focussed realism. The proactive recalibration of FY27–28E revenue guidance downwards to ~INR 4,000 Cr reflects a purposeful effort to reset investor expectation rather than overpromise. This is driven by procurement timing and process reality rather than demand weakness. Order momentum has re-accelerated meaningfully, with ~INR 930 Cr secured over the past four months, lifting the order book to ~INR 1,427 Cr (1.5x FY25 revenue), of which ~INR 1,100 Cr is executable over the next 12–18 months, positioning Zen for steady near-term growth.

Outlook

We maintain our BUY rating on ZEN with a target price of INR 2,150, implying a valuation of 35x FY28E EPS. We expect a meaningful acceleration in order inflows and execution over FY27–28E, supported by the EU-India trade agreement, which provides unrestricted access to Western markets, alongside strong interest from other international customers. This is likely to drive both, earnings recovery and a re-rating of the stock. Following the recent correction, we believe ZEN seems to be attractive in India’s defence technology sector.

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