- By Aditya Pratap Singh
- Mon, 17 Feb 2025 11:41 AM (IST)
- Source:JND
Zen Technologies Share Price: Shares of aerospace and defence major Zen Technologies fell sharply in early trade on Monday. The stock fell 20% to hit a lower circuit at Rs 1,080 on the NSE despite strong financial results for the December 2024 quarter, business sentiment remained subdued. The stock has fallen over 50% in a month. In the morning the shares were opened at Rs 1,206.0 per share and fell significantly to hit an intraday low of Rs 1,080 per share.
Third-quarter performance fails to restore market confidence
Zen Technologies reported a net profit of Rs 38.62 crore for the December 2024 quarter, a 22% year-on-year growth compared to Rs 31.67 crore in the same period last year. However, for the quarter ended September 2024, profit fell 40.8% year-on-year, with a profit of Rs 65.24 crore reported.
The company's revenue rose 44% to Rs 141.52 crore from ₹98.08 crore in the same quarter last year. However, revenue declined 41.44% sequentially from Rs 241.69 crore in the previous quarter. At the same time, EBITDA grew 21% year-on-year to Rs 58.69 crore as compared to Rs 48.41 crore in the December 2023 quarter.
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Stocks that fell below 52-week highs
Zen Technologies' share price touched Rs 2,627.95 in 52 hours, continuing to remain in the bleeding stocks zone. The current level of Rs 1080 is still well above the 52-week low of Rs 795 on NSE.
The stock has declined over 50 per cent so far this year. The stock was trading at around Rs 2,476 on January 1, 2025; on February 17, 2025, the stock was trading at Rs 1,080. It has fallen 31% in the past five days, raising serious questions for investors.
What is the reason for this decline?
Despite a significant increase in annual revenues, the decline in profit and revenue compared to the previous quarter has spooked investors. The decline in the stock price also reflects concerns about profit booking, sector-wise challenges, and its order flow and growth prospects.
As Zen Technologies continues to expand its presence in the drone and defence sectors, it will be interesting to see how the stock reacts in the future.
Disclaimer: This is just a piece of news about the recent development in stock. Jagran does not advise investing, please do take expert opinion before investing.
