Zen Technologies Secures ₹46 Crore Defense Contract, Stock Surges

Shares in Zen Technologies Ltd surged on October 1 after the company said it received an Annual Maintenance Contract (AMC) of ₹46 crore, including 18% GST, from the Ministry of Defence for its simulators.

Zen Tech stock was trading 0.5% higher at ₹1,726.90 on the National Stock Exchange (NSE) at 9:17 am IST. On NSE, shares of Zen Technologies have closed at ₹1,713 in the last trading session. Compared to the yearly rise of 116%, it has recorded an 18% out-performance over Nifty. 

Zen's stocks have gone up by roughly around 128% in the last 12 months, meaning almost double for investors. On the other hand, in the same period, it was only a rise of 32% for Nifty. Market capitalization of the company is stood at ₹15,131.76 crore, as given by BSE data.

The tie-up with the Ministry of Defence for five years ensures that the simulators made available by Zen Technologies continue to get maintained. It brings attention to the excellent rapport between the company and the Ministry of Defence.

"This contract strengthens Zen's association with the Ministry of Defence and showcases the confidence the Ministry reposes in our high-tech defence solutions. This also focuses on Zen's ability to cater to the operational needs of the Indian defence forces through state-of-the-art simulation solutions," the company said in a filing.

Operational preparedness and maintenance solutions for key defence machinery form part of the unparalleled operational preparedness and maintenance solutions offered by Zen Technologies in the defence simulation arena.

Military training systems and anti-drone solutions are what the company majors in. Its portfolio ranges from land-based training simulators, driving simulators, to live range equipment. A R&D unit recognized by the Ministry of Science and Technology, the outfit has so far contributed more than 155 patents with 75 patents granted, besides delivering over 1,000 training systems worldwide.

New remote-controlled weapon and surveillance systems developed by Zen Technologies will add yet another enforcer to India's defense mechanisms. "Zen Technologies, a leading provider of anti-drone technology and defense training solutions, with its subsidiary AI Turing Technologies, has recently launched four path-breaking remote-controlled weapon and surveillance systems," the company said.

These new game changers in modern warfare would strengthen India's military scenario.

New generation systems include the RCWS - 7.62 x 51 MMG (Parashu), Tank Mounted RCWS - 12.7 x 108 HMG (Fanish), Naval RCWS - 12.7 x 99 HMG (Sharur), and Artillery Rugged Camera (Durgam). The RCWS - 7.62 x 51 MMG (Parashu) includes highly versatile systems equipped with advanced thermal imaging along with anti-drone capabilities for vehicle and ship deployment. At the same time, Tank Mounted RCWS - 12.7 x 108 HMG (Fanish) up-grades the fire power of T-72 and T-90 from thermal targeting which serves to concentrate hits even at adverse weather conditions.

Naval RCWS - 12.7 x 99 HMG (Sharur) is optimized to counter surface and aerial threats up to 2 kilometers range with the aid of stabilized sophisticated technology to ensure its accuracy is maintained even in low-visibility conditions.

The Durgam, or Artillery Rugged Camera, is designed with military-grade day and night vision for excellent performance in hostile environments and areas of high risk. It will enable real-time detection of threat sources.

Speaking on the development, Ashok Atluri, chairman and managing director, Zen said, "Our new remote-controlled weapons and surveillance systems give the armed forces superior technologies that enhance operational capabilities manifold and keep the soldiers away from danger, which will give our forces a tactical edge."

In the past, Zen has brought into the market products such as Hawkeye, Barbarik-URCWS, Prahasta, and Sthir Stab 640. This solidifies its position in India's pursuit of modernizing its defense sector.