Archive · 28 Oct 2025
Broker Recommends Zen Technologies with 'Buy' Rating and Revised Target
Imagine Zen Technologies is a company that makes special equipment.
They had a bit of a tough time earlier this year because some big orders were delayed.
But, because their equipment worked really well during a recent conflict between India and Pakistan, the company expects many new orders to come in soon.
Because of this, a financial expert still thinks it's a good idea to 'buy' their stock.
They lowered the price they think the stock will reach a little bit, but it's still much higher than what it is today.
The company also made more money on the sales they did manage to complete.
Experts think the company will grow a lot in the next few years and make good profits.
Zen Technologies faced a difficult Q2 and H1 with delayed order inflows shifting to H2.
Despite a muted FY26 outlook, the company maintained its sales CAGR guidance of 50% for FY25-28, expecting robust order inflows in H2 FY26 and FY27.
The broker cut FY27E and FY28E EPS estimates by 7% and 6% respectively due to a lower order inflow outlook for FY26.
Gross margins expanded significantly to 63.6% in Q2, attributed to higher-margin simulator order execution.
The broker reiterated a 'Buy' rating, citing the successful demonstration of Zen's products in the India-Pakistan conflict as a driver for future demand, and revised the target price to ₹2,120.
- Who
- A financial broker
- What
- Maintained a 'Buy' recommendation and revised the target price for Zen Technologies
- When
- Published on October 28, 2025
- Where
- India (implied by stock market context and company name)
- Why
- Despite a difficult Q2 and H1 due to deferred order inflows, successful product demonstrations during the India-Pakistan conflict are expected to drive future demand, leading to a robust order inflow in H2 FY26 and FY27.
- Company
- Zen Technologies
- Broker Recommendation
- Buy
- Current Market Price (CMP)
- ₹1,341.40
- Target Price
- ₹2,120
- Gross Margins Expansion (Q2)
- 1,340bps to 63.6%
- Expected EBITDA Margin
- 35%
- Expected PAT Margin
- 25%