Zen Technologies Shares Jump 11% on Arms Licence Boost; Stock Trades 42% Above Lows on Heavy Volumes

Shares of Zen Technologies surged sharply in today's trade, with the Zen Technologies share price jumping nearly 11% intraday after the company announced it has received an arms manufacturing licence from the Government of India under the Arms Act, 1959.

Zen Technologies Share Price Today

As of 10:30 AM, Zen Technologies' share price today was trading at Rs 1,813, up 10.29%, after hitting an intraday high of Rs 1,825. The stock saw heavy trading activity, with volumes rising to 28.58 lakh shares compared to an average of 5.88 lakh.

Arms Licence Details

The company's latest announcement around the Zen Technologies arms licence has acted as a key trigger for the rally. The licence allows the company to manufacture a range of advanced cannons, including 12.7mm, 23mm, 30mm and 40mm variants. These systems are widely used in air defence, naval operations, and counter-unmanned aircraft system (C-UAS) roles.

These rapid-fire cannons are designed as last-layer defence systems against drones, loitering munitions, and low-flying aerial threats in areas that are increasingly critical in modern warfare.

When integrated with radar systems, fire-control systems, electro-optical/infrared (EO/IR) sensors, and programmable ammunition, these platforms offer enhanced precision and protection for key infrastructure and strategic assets. This expansion is expected to open new revenue streams for the company in both domestic and global defence markets.

Stock Performance and Key Metrics

The rally in Zen Technologies' stock has pushed its market capitalisation to around Rs 15,664 crore. As per Trendlyne data, the stock has traded in a day range of Rs 1,648.8 to Rs 1,825 and remains within its 52-week range of Rs 1,223 to Rs 2,268. Valuations remain on the higher side, with the stock trading at a P/E ratio of 59.21, supported by an EPS of Rs. 29.42. Despite the premium valuation, investor sentiment remains positive due to the company's strong positioning in the defence and counter-drone technology space.

Choice Institutional Equities, in its report, said, "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"

About Zen Technologies

Headquartered in Hyderabad, Zen Technologies is a key player in India's defence technology ecosystem. The company specialises in combat training simulators, anti-drone systems, and advanced defence solutions for armed forces, police, and paramilitary units.

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