This defence gear maker from Hyderabad has doubled shareholder wealth in just a month thanks to an order from the Indian Air Force

• Shares of defence equipment maker Zen Technologies have shot up 108% in the last one month.
• The surge in stock was led by the ₹155 crore order of unarmed aircraft systems from the Indian Air Force along with ease in drone policies.
• The company provides defence training solutions, drones and anti-drone solutions.

Shares of defence equipment maker Zen Technologies have zoomed 108% in just 20 trading sessions. In the last one month, the stock has doubled from ₹89 on August 7 to ₹186 on September 7.

In the last five days itself, the stock climbed 85% as the company bagged an order worth ₹155 crore from India Air Force (IAF) for the supply of counter unmanned aircraft systems (CUAS). The company also received the order after facing stiff competition due to competitive pricing among others.

This order is special for the company and the investors as it is its first significant order in the anti-drone space, and the company remains confident of securing additional orders in the future.

Zen Technologies manufactures land-based military training and driving simulators, live range equipment and anti-drone systems.

The company has highlighted strong demand in training solutions and anti-drone systems in many countries.

“This is a significant step toward making India a drone and counter-drone technology export hub. These orders placed on Indian companies can have a multiplier effect on the Indian equipment manufacturers ecosystem because products like anti-drone systems have a high export potential to friendly foreign countries. Anti-drone systems and training solutions are in high demand in many countries,” said Ashok Atluri, chairman, managing director and chief financial officer (CFO) of the company.

As of September 3, the company has an order book of ₹402 crore including ₹278 crore domestically and ₹124 crore in exports.

Adding to it, the government’s recent move to ease down drone rules in the country also seem to have triggered the stock.

On August 27, the government announced a new set of liberal drone rules in the country wherein approval period for drone flying was reduced, charges for remote pilot licence was cut down with reduction in penalty for violation of rules.

Zen Technologies is reportedly the sole listed player active in manufacturing drones in India and is expected to be the key beneficiary of the new rules.