defense

Zen Technologies

ZENTEC · Nifty 50

1,887.4

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

Sector Positiondefense sector. Flow: neutral. is not among current leaders. Regime: BROAD EXPANSION (73%).
Fundamental Score85/100 (STRONG). 1 positive flags, 3 concerns.
Historical Context41 similar technical setups. Average outcome: -17.2% decline. 0% positive.

Fundamental

85/100

STRONG

Trust

95/100

Verification

Coverage

44/100

LIMITED

Quick Take

Zen Technologies scores 85/100 on fundamentals (strong). Zen Technologies: BROAD EXPANSION regime.

Fundamental Score: 85/100 · STRONG · 1 signals detected

DuPont Analysis

ROE 12.4% broken into three drivers. Each shows how efficiently the company generates returns.

ROE12.4%=
28.0%Net Margin
×
0.4xTurnover
×
1.1xLeverage

ROE of 12.44% is moderate margin-driven and stable. Net margin of 28.0% × asset turnover of 0.39x × leverage of 1.1x.

What This Means

Net margin of 28.0% means the company keeps ₹28.0 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.39x means the company generates ₹0.39 of revenue for every ₹1 of assets. This is a capital-heavy business. Leverage of 1.1x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.

Margin Structure

Gross

71.5%

Operating

45.2%

Net

28.0%

declining

Gross margin 71.5% → operating margin 45.2% → net margin 28.0%. Margins are DECLINING. Check if input costs are rising or competition is pressuring pricing.

Financial Health

Earnings Quality

ADEQUATE

Cash flow covers net income 1.0x — earnings are ADEQUATE quality. Cash conversion is reasonable.

Debt Sustainability

COMFORTABLE

Interest covered 31.2x — very comfortable. Debt service is not a concern.

Free Cash Flow

STRONG

FCF margin at 21.8% — strong cash generation. Business is self-funding.

Peer Comparison

Zen Technologies is compared against 7 peers in the defense sector.

Key Watchpoints

🟢

Breaks above ₹1982 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹1793 (-5%)

Further downside risk

🟢

Defense sector entering leadership

Sector rotation signal

Detected Patterns

✅ Cash Flow Inflection: FCF turned positive after negative periods — major transition

Risk Flags

⚠️ 3 Warning1 Positive4 total flags
⚠️Non-core revenue is 18% of total
Earnings Quality

Significant income from non-operating sources. Core business may be smaller than it appears.

⚠️Receivables increasing — 23.6% of revenue
Cash Flow

Collection cycle changing. Customers taking longer to pay — monitor DSO.

⚠️Price/Sales: 25.2x — expensive on revenue basis
Valuation

High revenue multiple. Market pricing in significant growth or margins expansion.

Minimal unusual items — clean earnings
Earnings Quality

Profits are from core operations, not one-offs. High quality.

⚠️ 3 warning flags — monitor closely.

Data Quality

95/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

margin pressure (4)management outlook (4)
Our margin analysis (declining) matches news reports of cost/margin pressure

50 articles scanned for fundamental themes

Facts

P/E Ratio
83.3UNAVAILABLE
P/B Ratio
9.0HIGH
Market Cap
₹1613291.7L CrHIGH
From 52W High
91% of high
Sector Peers
7
Zen Technologies Stock Analysis, Valuation, Fundamentals & Intelligence | FynSight