Check Before You Invest : Zen Technologies Ltd

Q: Which industry/sub-sector does Zen Technologies Ltd belong to?

Zen Technologies Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Defence segment.

Q: Is Zen Technologies Ltd a good quality company?

Zen Technologies Ltd is a average quality company, based on a somewhat consistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Zen Technologies Ltd undervalued or overvalued?

Zen Technologies Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 100.6, Historic Median: 92.35. Price to Book, Current: 8.05, Historic Median: 7.94. Price to Sales, Current: 34.62, Historic Median: 21.13. EV to EBITDA, Current: 67.78, Historic Median: 56.68

Q: Is Zen Technologies Ltd a good buy now?

Zen Technologies Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Zen Technologies Ltd?

Zen Technologies Ltd revenue growth is 116.3% for FY-2025, which is above its 5-year CAGR of 44.65%, indicating faster growth.

Q: Gross Profit margin of Zen Technologies Ltd?

Zen Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 38.9% for FY-2025, which is above its 5-year median of 34.9%, indicating increasing margins.

Q: Operating Profit Margin of Zen Technologies Ltd?

Zen Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 33.75% for FY-2025, which is above its 5-year median of 31.76% indicating increasing margins.

Q: Net Profit Margin of Zen Technologies Ltd?

Zen Technologies Ltd Net Profit Margin is 28.25% for FY-2025, is above its 5-year median of 23.31%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 38.9, Historic Median: 34.9. Operating Profit Margin (%), Current: 33.75, Historic Median: 31.76. Net Profit Margin (%), Current: 28.25, Historic Median: 23.31

Q: Return on Asset of Zen Technologies Ltd?

Zen Technologies Ltd Return on Asset is 20.27%, which is above its 5-year historical median of 9.77%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Zen Technologies Ltd?

Zen Technologies Ltd Return on capital employed is 32.94% for FY-2025, which is above its 5-year historical median of 17.79%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Check Before You Invest : Zen Technologies Ltd

Snapshot

Q.1 Which industry/sub-sector does Zen Technologies Ltd belong to?

Zen Technologies Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Defence segment.

Q.2 Is Zen Technologies Ltd a good quality company?

Zen Technologies Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Zen Technologies Ltd undervalued or overvalued?

Zen Technologies Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	100.6	92.35
Price to Book	8.05	7.94
Price to Sales	34.62	21.13
EV to EBITDA	67.78	56.68

Q.4 Is Zen Technologies Ltd a good buy now?

Zen Technologies Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Zen Technologies Ltd?

Zen Technologies Ltd revenue growth is 116.3% for FY-2025, which is above its 5-year CAGR of 44.65%, indicating faster growth.

Q.2 Gross Profit margin of Zen Technologies Ltd?

Zen Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 38.9% for FY-2025, which is above its 5-year median of 34.9%, indicating increasing margins.

Q.3 Operating Profit Margin of Zen Technologies Ltd?

Zen Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 33.75% for FY-2025, which is above its 5-year median of 31.76% indicating increasing margins.

Q.4 Net Profit Margin of Zen Technologies Ltd?

Zen Technologies Ltd Net Profit Margin is 28.25% for FY-2025, is above its 5-year median of 23.31%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	38.9	34.9
Operating Profit Margin (%)	33.75	31.76
Net Profit Margin (%)	28.25	23.31

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Zen Technologies Ltd?

Zen Technologies Ltd Return on Asset is 20.27%, which is above its 5-year historical median of 9.77%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Zen Technologies Ltd?

Zen Technologies Ltd Return on capital employed is 32.94% for FY-2025, which is above its 5-year historical median of 17.79%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of Zen Technologies Ltd?

Zen Technologies Ltd Return on equity is 24.61% for FY-2025, which is above its 5-year historical median of 12.43%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Zen Technologies Ltd?

Zen Technologies Ltd Cash conversion cycle is 131 days, below its 5-year historical median of 150 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.72	0.42
ROE (%)	24.61	12.43
ROCE (%)	32.94	17.79
Cash Conversion Cycle	131 days	150 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Zen Technologies Ltd?

Zen Technologies Ltd Debt-to-Equity ratio is 0.03, which is lower the industry average of 0.09, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Zen Technologies Ltd?

Zen Technologies Ltd Debt to cash flow from operations is -0.36, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Zen Technologies Ltd?

Q.1 Promoter shareholding and pledge status of Zen Technologies Ltd?

Promoters hold 48.51% of the Zen Technologies Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Zen Technologies Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Zen Technologies Ltd vs industry peers?

Zen Technologies Ltd revenue CAGR is 44.65%, compared to the industry median CAGR of 18.15%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	116.3	18.2
Gross Profit Growth (%)	91.5	33
Operating Profit Growth (%)	77.4	27.2
Net Profit Growth (%)	103.9	33.2

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.72	0.56
ROE (%)	24.61	12.34
ROCE (%)	32.94	15.01
Cash Conversion Cycle (days)	130.99	155

Valuation & price assessment

Q.1 Stock return of Zen Technologies Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 35.6% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	35.6%	85.9%	73.7%	15.5%

Q.2 Valuation ratios of Zen Technologies Ltd vs historical?

The current P/E ratio of 100.6 is higher than its historical median of 92.35, indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	100.6	92.35	64.82
Price to Book	8.05	7.94	7.10
Price to Sales	34.62	21.13	8.19
EV to EBITDA	67.78	56.68	33.96

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Check Before You Invest : Zen Technologies Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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