Zen Technologies Ltd - Stock Valuation and Financial Performance

BSE: 533339 | NSE: ZENTEC | IT - Software | Small Cap

Zen Technologies Share Price

964.50 27.25 2.91%
as on 18-May'24 12:19

DeciZen - make an informed investing decision on Zen Technologies

Overall Rating
Bole Toh

1. Quality

2. Valuation

Somewhat overvalued

3. Price Trend

Semi Strong

Zen Technologies stock performance -

mw4me loader
P/E Ratio (SA):
60.95
Market Cap:
7,877.1 Cr.
52-wk low:
325.6
52-wk high:
1,130.1

Is Zen Technologies Ltd an attractive stock to invest in?

1. Is Zen Technologies Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Zen Technologies Ltd is a below average quality company.

2. Is Zen Technologies Ltd undervalued or overvalued?

The key valuation ratios of Zen Technologies Ltd's currently when compared to its past seem to suggest it is in the Somewhat overvalued zone.

3. Is Zen Technologies Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Zen Technologies Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Zen Technologies:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Zen Technologies Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 1.6%12.9%2.6%6.5%0%14.3%32.7%2.3%1.1%11.9%-
Value Creation
Index
-0.9-0.1-0.8-0.5-1.00.01.3-0.8-0.9-0.2-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 46.478.652.661.73992.214749.653.7161430
Sales YoY Gr.-69.5%-33%17.2%-36.8%136.7%59.4%-66.3%8.4%200.6%-
Adj EPS 020.30.9-0.22.47.80.50.24.515.4
YoY Gr.-10100%-85.3%210%-122.6%NA220.1%-93.6%-52%1791.7%-
BVPS (₹) 12.814.414.615.515.417.725.226.836.439.853.9
Adj Net
Profit
0.115.72.37.1-1.618.960.241.936.1129
Cash Flow from Ops. 10-20.142.95.219.1-43.864.512.7-43.899.3-
Debt/CF from Ops. 1.8-20.91.80.5-100.1-0.30.1-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 14.9%32.9%3.2%200.6%
Adj EPS 82.7%NA-16.5%1791.7%
BVPS13.5%21%16.5%9.4%
Share Price 59.3% 69.2% 137.4% 185.6%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
0.1152.16.2-1.414.535.51.90.711.832.8
Op. Profit
Mgn %
1.326.17.818.9-4.824.543.315.63.731.841.2
Net Profit
Mgn %
0.3204.411.6-4.220.44183.522.430
Debt to
Equity
0.20.40.40.10.10.300000
Working Cap
Days
326297456259474355274655881416252
Cash Conv.
Cycle
89192280103199205160260178146127

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 32.80%

Sales growth is good in last 4 quarters at 195.66%

Sales growth has been subdued in last 3 years 3.18%

Net Profit has been subdued in last 3 years -16.54%

Latest Financials - Zen Technologies Ltd.

Standalone Consolidated
TTM EPS (₹) 15.4 15.2
TTM Sales (₹ Cr.) 430 440
BVPS (₹.) 53.9 53.4
Reserves (₹ Cr.) 445 440
P/BV 17.38 17.56
PE 60.95 61.59
From the Market
52 Week Low / High (₹) 325.60 / 1130.10
All Time Low / High (₹) 1.44 / 1130.10
Market Cap (₹ Cr.) 7,877
Equity (₹ Cr.) 8.4
Face Value (₹) 1
Industry PE 31.1

Management X-Ray of Zen Technologies:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.890.890.930.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Zen Technologies

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales4679536239921475054161
Operating Expenses 465849504170844252110
Manufacturing Costs171566891381017
Material Costs12241512426398841
Employee Cost 561215151617131523
Other Costs 11121517141915131929
Operating Profit 121412-223638251
Operating Profit Margin (%) 1.2%26.1%7.7%18.8%-4.8%24.4%43.2%15.6%3.7%31.8%
Other Income 7664432357
Interest 2223253112
Depreciation 5444344444
Exceptional Items 0000000002
Profit Before Tax 02039-317596254
Tax 0412-2-2-22016
Profit After Tax 01627019614238
PAT Margin (%) 0.2%20.0%4.4%12.1%-1.0%20.9%41.2%8.3%3.8%23.3%
Adjusted EPS (₹)0.02.00.31.0-0.12.57.80.50.34.7
Dividend Payout Ratio (%)826%17%33%16%-198%12%5%19%39%4%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 99111112120118137194213289316
Share Capital 8888888888
Reserves 91103105112111129187205281308
Minority Interest0000000000
Debt173937663511126
Long Term Debt4486390030
Short Term Debt12353002261196
Trade Payables2323385234
Others Liabilities 112515163536-7-1333107
Total Liabilities 128178167144162215193203338433

Fixed Assets

Gross Block636667719394100101102114
Accumulated Depreciation14182226293135394347
Net Fixed Assets49474445656364625967
CWIP 101517000032
Investments 000021316242424
Inventories101510812351091441
Trade Receivables858520106344172066
Cash Equivalents 423868344313193376147
Others Assets182025203128405814285
Total Assets 128178167144162215193203338433

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 10-2043519-446413-4499
PBT 02039-317596254
Adjustment 41013276210
Changes in Working Capital 4-4940-620-66117-4554
Tax Paid 20-1-1-1-2-11-3-1-9
Cash Flow From Investing Activity -8-4-930-127-11-18-43-3
Capex -25-3-1-6-6-5-2-2-4-12
Net Investments 0000-10000-3
Others 17-1-836-412-9-16-4012
Cash Flow From Financing Activity -720-3-8-55-211087-18
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing 3040-16-1500-6
Interest Paid -2-2-2-3-2-5-30-1-2
Dividend Paid 000-1-1-1-2-3-1-1
Others -722-5-50401389-10
Net Cash Flow -5-430263-32325078
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)0.0915.022.076.41-0.3315.0936.582.010.8112.43
ROCE (%)2.1816.433.488.61-0.2214.0632.293.231.2617.79
Asset Turnover Ratio0.370.520.310.40.250.490.720.250.20.42
PAT to CFO Conversion(x)N/A-1.2521.50.71N/A-2.321.053.25-222.61
Working Capital Days
Receivable Days451522157414314513322712697
Inventory Days59578652919357707863
Payable Days51396576329775917512831

Zen Technologies Ltd Stock News

Zen Technologies Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Zen Technologies on 18-May-2024 12:19 is ₹964.5.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 18-May-2024 12:19 the market cap of Zen Technologies stood at ₹7,877.1.
The latest P/E ratio of Zen Technologies as of 18-May-2024 12:19 is 60.95.
The latest P/B ratio of Zen Technologies as of 18-May-2024 12:19 is 17.38.
The 52-week high of Zen Technologies is ₹1,130.1 and the 52-week low is ₹325.6.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Zen Technologies is ₹430.3 ( Cr.) .

About Zen Technologies Ltd

Zen Technologies, incorporated in 1993, is a pioneer in the design, development and manufacture of world class, state-of-the-art training simulators. The company has grown at an average rate of 100% over the last three years. It has been a profit making and dividend paying company during this period.

The company has supplied over 170 simulators to over 70 customers all over India and enjoys the confidence of this large customer base. Its customers are located across the length and breadth of the country. The main customers are defence services, state police forces, para military forces and the navy of a South East Asian country.

Zen Technologies has been acquiring technology competencies and is now poised as a solutions provider. The company attaches special importance to its in-house R&D division that is recognized by the Department of Scientific and Industrial Research, Ministry of Science and Technology, Government of India. Their mission is to provide to their customers, the highest level of products and services in their areas of expertise. The company went public in the year 2000. Zen has been at the forefront of applying new technologies and developing new products and is actively involved in indigenization of technologies, which are helpful for Indian security forces.

Zen has developed an advanced version of ZEN iFATS - Advanced Weapon Simulator (ZEN AWeSim), which comes in two versions, one integrated with un-tethered weapons and other one with tethered weapons. ZEN AWeSim can train up to 8 firers simultaneously and provides for 3D based targets and video-based scenarios for developing judgmental and reflex skills.

Zen has also designed, developed and manufactured two types of Driving Simulators:

  • Driving Simulator (ZEN DS): This simulator is appropriate for imparting basic training skills.
  • Driving Training Simulator (ZEN DTS): This simulator can be configured for heavy, medium or light vehicles with or without motion platforms.

Other training simulators from Zen include Small Arms Training Simulator - SL (ZEN SATS SL), Hand Grenade Simulator (ZEN HE36S), Tactical Engagement Simulator (ZEN TacSim), Anti-Tank Guided Missile Simulator (ZEN ATGM Sim) and Artillery Forward Observer Simulator (ZEN ArtyFOS).ZEN has supplied more than 400 lanes of ZEN SATS and ZEN iFATS to its large customer base.

Product range of the company include:

  • Zen Advanced Weapons Simulator (ZEN AWeSim)-A state-of-the-art firearms simulator for imparting training from Recruits to Special Forces. It recreates firing range indoors.
  • Zen Small Arms Training Simulator (ZEN SATS SL)-Fire Arms Simulator designed to provide the weapon handling and firing skills of security forces deployed with space, operational, movement constraints. It is a standalone system that addresses every training need of experienced soldiers.
  • Zen Hand Grenade Simulator (ZEN HE36S)-Zen Hand Grenade Simulator gets as close to a real grenade as possible. It is very effective for imparting training in offensive use of the grenade as a weapon, and improving individual reflex action when attacked by a grenade.
  • Zen Anti-Tank Guided Missile Simulator (ZEN ATGM Sim)-Anti Tank Guided Missile Simulator enables training missile pilots in firing missiles as in actual. The actual training in different environment with precise effects is recreated.
  • Infantry Combat Vehicle Integrated Missile Simulator (ZEN BMP II IMS)-The Zen Infantry Combat Vehicle / Armoured Personnel Carrier Integrated Missile Simulator (Zen BMP II IMS) simulator has been designed to meet the training requirements of gunners and commanders of Infantry Combat Vehicle (ICV) / Armoured Personnel Carrier (APC).
  • Zen Infantry Combat Vehicle Driving Simulator (ZEN BMP II DS)-Zen BMP II Driving Simulator has been developed to train raw recruits as well as trained Special Drivers to drive Infantry Combat Vehicle (ICV) or the Armoured Personnel Carrier (APC) with precision in operational and peace time scenarios.
  • Zen Combat Training Simulator System (ZEN CTSS)-Zen Combat Training Simulator System (Zen CTSS) is a ‘live’, ‘in contact’ simulator for use by the Army / Special Forces / Commandos for conducting tactical exercises with troops as in actual battlefield, complete with own and enemy forces in terrains of choice.
  • Zen Tactical Engagement Simulator (ZEN TacSim)-Zen Tactical Engagement Simulator (Zen TacSimâ„¢) is a ‘live’, ‘in contact’ training system that allows Law Enforcement Agencies / Police Forces / Special Forces / Commando units to conduct training of small teams to Company or Battalion sized force.
  • Zen Artillery Forward Observers Simulator (ZEN ArtyFOS)-Zen Artillery Forward Observer’s Simulator (Zen ArtyFOS) trains Observation Post Officers and Forward Observers of the Artillery and all other officers of combat wings of Army who may be required to direct fire Long Range indirect fire weapons like Mortars, Guns, Howitzers, Rockets and Missiles.
  • Zen 81mm Integrated Mortar Simulator (ZEN 81MM IMS)-Zen Integrated Mortar Simulator trains Mortar Fire Controllers / Mortar Position Controller and the Mortar Detachments in the techniques of acquiring, engaging and effectively destroying targets.
  • Zen Bus Driving Simulator (ZEN BusSim)-Zen Bus Driving Simulator (Zen BusSim) trains bus drivers of varied skill-sets and experience. The simulator uses ‘to scale’ bus cabin with all gauges, controls, transmission systems and indicators found in a bus.
  • Zen Driving Simulator (ZEN DS)-Zen Driving Simulator (Zen DS) is a versatile indoor, classroom training simulator. The basic simulator for Light, Medium and heavy Vehicles comes with both Left and Right Hand drives.
  • Zen Driving Training Simulator (ZEN DTS)-Zen Driving Training Simulator (Zen DTSâ„¢) is an indoor training system for light, medium and heavy vehicle trainee drivers. The simulator facilitates training in a ‘to scale’ vehicle cabin with actual indicators and controls and an optional motion platform.
  • Zen Mining Equipment Training Simulator (ZEN METS)-Zen Mining Equipment Training Simulator (ZEN METS) trains operators of heavy mining equipment and machinery like Dumpers, Shovels/Excavators, and Dozers of various capacities operating on wheels or tracks.
  • Zen Driver Aptitude Testing System (ZEN DATS)-Zen Driver’s Aptitude Testing System (Zen DATS) is scientifically designed, tested and certified device to test psycho-motor functions of potential and licensed drivers.
  • Software-The company has state-of-the-art mathematical modeling software, which helps in simulating projectile behavior, vehicle dynamics and environmental effects. In addition, software for Video Processing and Image Processing is also available. It has the capability of depiction/creation of 3-D Terrains/Models.
  • Electronics-The company has developed microprocessor based Control System for Vehicle Control and ATGM Tracking System. An electronic control system for a motion platform including the motion cue algorithms has been developed in-house. The system being utilized in position sensing of weapon’s point of aim for various simulators has been designed and developed in-house. A 3 DoF motion platform has also been developed.
  • Optics- The company started working in the field of optics for developing Weapon Laser Sensing System and Laser communication. Wide Screen Projection with edge blending has been achieved. Micro-screen based sighting system being utilized in simulating realistic missile and tank sights is another landmark achieved by Zen R&D.
  • Mechanical- The company’s mechanical design team is skilled in engineering complex mechanical systems to replicate weapon system for use in training simulators. It has designed realistic mock-ups for its simulators.

Achievements/ recognition:

  • Zen has an ISO 9001:2000 (QMS), ISO 27001:2005 (ISMS) Certification.
  • CMMI Level 3 Company.
  • Zen was the first company in India to commercialize PC-based visual simulation technology for small arms training simulators.
  • Zen simulators have been widely accepted by the Indian Security Forces.
  • The in-house R&D unit at Zen Technologies is recognized by the Department of Scientific and Industrial Research, Min. of Science &Technology, Govt. of India.
  • Zen Technologies Limited was listed among the top 20 companies that are an option for investment in a market over 7500.
  • Zen Technologies Ltd was awarded 1st prize in the category of “Most Innovative / Indigenous Product” for “Portable Simulators” during the recently concluded IISE -2009.
  • CRISIL awards the highest credit worthiness rating of SME 1 to ZEN.
  • Zen Technologies Limited is an ISO 27001:2005 (ISMS) certified company.
  • The in-house R&D unit at Zen Technologies is recognized by the Department of Scientific and Industrial Research, Min. of Science &Technology, Govt. of India.
  • 2009 - Dr. Visvesvaraya Industrial Award - 2009 for "Best Technology Effort" by All India Manufacturers’ Organization.
    "Most Innovative Portable Simulator (Security)" in the 12th India International Security Expo- 2009, organized by the India Trade Promotion Organization.
  • 2012 - Zen received national award for successful commercialisation of "Overseas Driving Training Simulator" based on indigenous technology on the event of Technology Day.
  • 2013 - Best exhibitor-Gold award for 16th India International Security Expo 2013.

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