Zen Technologies Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Zen Technologies Ltd trades at ₹1,770, in a confirmed uptrend and 12 weeks into that stage. That is +11.9% against its own 200-day average. It sits at 68% of a 52-week range of ₹1,288 to ₹1,997. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 25 straight weeks.

Today the stock is in a confirmed uptrend — week 12 of stage 2, confirmed. At ₹1,770 it trades +11.9% versus its 200-day average and sits at 68% of its 52-week range (₹1,288–₹1,997).

Against the market, two honest reads. Cumulative: over the last 10.3 years the stock moved +2,408% while the NIFTY 500 moved +274% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 25 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: the P/E sits at the 61st percentile of its own range.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Zen Technologies Ltd trades at 87.9× P/E, mid-range by its own standards (61st percentile). Its long-run median P/E is 75.0×, measured across 10.4 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 87.9× is mid-range by its own standards (61st percentile), against a long-run median of 75.0× measured over 10.4 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

🚨 Why the multiple sits where it does: over the past year annual EPS moved −31.0% against a −5.9% price move — the price outran earnings, pushing the multiple UP its own range.

The price move, decomposed: over 5y, of the +79.2%/yr price move, ~+140.0%/yr came from earnings growth and ~−60.8 pp from the multiple (compressing); over 10y, of the +36.5%/yr price move, ~+31.3%/yr came from earnings growth and ~+5.2 pp from the multiple (expanding). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

The PEG ratio and its quarterly curve, which only the second data source carries, are not drawn on this page: its two data sources disagree by up to 32% on reported income across 14 comparable periods. A figure two sources cannot agree on is not drawn — the gap is a decision, not missing data.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

Stage: Deteriorating Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Zen Technologies Ltd reads as deteriorating on its fundamental arc. Deteriorating — revenue, profit and EPS growth are shrinking (revenue growth −23.4% latest against +121.9% at its 12-quarter best), ROCE slipping at 16.0%. The read is built from 8 quarters across 4 curves, on partial evidence.

🚨 Why it matters: falling curves mean every cheap-looking ratio below needs a discount for direction.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

4-Factor Sector Score

42.1/100 — rank 17 of 24 in Aerospace & Defence - Equipments · 70% evidence confidence

Zen Technologies Ltd scores 42.1 out of 100 against the 24 companies it is compared with in Aerospace & Defence - Equipments, ranking 17. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 4.9 + 17.3 + 10.3 + 9.6 = 42.1. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Zen Technologies Ltd reported ₹142 Cr of revenue in the Jun 26 quarter, −10.1% year on year. Over 11 years it has compounded at 21.7% a year. The last full year, FY26, came in at ₹688 Cr. The last four reported quarters add to ₹672 Cr.

Zen Technologies Ltd reported ₹142 Cr of revenue in the Jun 26 quarter, −10.1% year on year. Over 11 years it has compounded at 21.7% a year. The last full year, FY26, came in at ₹688 Cr. The last four reported quarters add to ₹672 Cr.

FY26 revenue came in at ₹688 Cr (−29.4% on the year), capping 11 years at 21.7% compound. The latest quarter (Jun 26) printed ₹142 Cr, −10.1% year on year.

Pace check: the last four quarters averaged −16.6% growth against the decade's 21.7% — the current year is running slower than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew −23.4% over the last 4 quarters against +9.3%/yr over the last 8 — rolling over; TTM profit −27.8% vs +10.6%/yr — rolling over.

→ Revenue slipped — did margins hold as it scaled? Next: 27.0% this quarter (−14.0 pp YoY).

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Zen Technologies Ltd's operating margin is 27.0% in the Jun 26 quarter, −14.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 1.0% to 42.0%. The current quarter sits inside that band.

Zen Technologies Ltd's operating margin is 27.0% in the Jun 26 quarter, −14.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 1.0% to 42.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 27.0%, −14.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 1.0%–42.0%.

🚨 Why the margin moved: operating margin went −13.5 pp year on year while gross margin went +5.8 pp — the loss came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

→ Margins slipped — did that reach the bottom line? Next: profit −39.6% in the latest quarter.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Zen Technologies Ltd earned ₹32.0 Cr of net profit in the Jun 26 quarter, −39.6% year on year. Full-year FY26 profit was ₹218 Cr. The 11-year compound rate is 26.8%. That is 22.5% of the quarter's revenue. The same quarter a year earlier earned ₹53.0 Cr.

Zen Technologies Ltd earned ₹32.0 Cr of net profit in the Jun 26 quarter, −39.6% year on year. Full-year FY26 profit was ₹218 Cr. The 11-year compound rate is 26.8%. That is 22.5% of the quarter's revenue. The same quarter a year earlier earned ₹53.0 Cr.

Jun 26 profit was ₹32.0 Cr, −39.6% year on year. On the full year, FY26 printed ₹218 Cr (−27.1%), and the 11-year compound rate is 26.8%.

🚨 Why profit moved: revenue contributed −10.1% and the margin −14.0 pp — the quarter was revenue-led despite a thinner margin.

Pace comparison, last four quarters: profit −17.4% vs revenue −16.6%. Profit and revenue are moving roughly in step.

→ Profit rose — but did the cash follow? Next: 17% of the last 3 years' profit arrived as cash.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 17% of Zen Technologies Ltd's reported profit arrived as operating cash — a gap worth watching. In FY26 that was ₹245 Cr of operating cash against ₹218 Cr of profit. After ₹63.0 Cr of capital spending, ₹182 Cr was left as free cash.

FY26: operating cash of ₹245 Cr against reported profit of ₹218 Cr, leaving free cash of ₹182 Cr after ₹63.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 17% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

🚨 Why conversion sits at 17%: the cash cycle tightened 176 days between FY21 and FY26 — cash that used to wait in the cycle now reaches the bank sooner. Less than 70% of profit arriving as cash is the thing to watch on this page.

Router verdict: the bigger cash user is investment — capital spending ran 4.6× depreciation over three years, so the next section's job is to check what that build-out is buying.

→ So follow the cash to where it goes. Next: ₹226 Cr of building over 3 years.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Zen Technologies Ltd's cash conversion cycle runs 425 days in FY26, down from 601 days in FY21. Capital spending ran ₹226 Cr over the last 3 years. At FY26 sales of ₹688 Cr each day of that cycle holds about ₹1.9 Cr, so roughly ₹801 Cr sits inside the business at any moment.

FY26: debtors at 119 days, inventory at 415 days — roughly 13.7 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 425 days, tighter than FY21's 601.

The full loop: cash goes out to suppliers and production on day 0; stock waits 415 days to sell; customers pay about 119 days after that; and suppliers themselves are paid at 109 days — netting out to the 425-day cycle.

In money terms: at FY26 sales of ₹688 Cr, each day of the cycle holds about ₹1.9 Cr — so the 425-day loop keeps roughly ₹801 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹226 Cr over the last 3 fiscal years against ₹49.0 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹13.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

→ Does all this activity actually earn its cost of capital? Next: ROCE is 16%.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Zen Technologies Ltd earns a ROCE of 16% in FY26. That is up from a trough of 2% in FY14. A return-on-invested-capital spread against the cost of capital is not computable from what is held here. The wiring behind it is 31.7% net margin on 0.32× asset turns.

FY26 ROCE is 16%, recovered from a FY14 trough of 2% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 31.7% net margin × 0.32× asset turns × 1.14× balance-sheet leverage ≈ 11.6% on equity. Margin is doing the heavy lifting; leverage is modest — this is an earned return, not a borrowed one.

The quarterly return curves and the return-on-invested-capital overlay, which only the second data source carries, are not drawn on this page: its two data sources disagree by up to 32% on reported income across 14 comparable periods. A figure two sources cannot agree on is not drawn — the gap is a decision, not missing data.

→ Returns like these — is the balance sheet borrowing to make them? Next: debt-to-equity is 0.01.

Debt Debt-to-equity says how much of the business is funded by borrowings; interest cover says how many times operating profit pays the interest bill. Low and high, respectively, is the safe corner.

Zen Technologies Ltd carries ₹19.0 Cr of borrowings against ₹1,889 Cr of equity in FY26, a debt-to-equity of 0.01. Operating profit covers the interest bill 25×. Over 5 years borrowings went from ₹2.0 Cr to ₹19.0 Cr. Capital spending ran ₹226 Cr across the last 3 of those years.

FY26: borrowings of ₹19.0 Cr against equity of ₹1,889 Cr — a debt-to-equity of 0.01. Operating profit covers the interest bill 25×. Over 5 years borrowings went from ₹2.0 Cr to ₹19.0 Cr while capital spending ran ₹226 Cr in just the last 3 — part of the build-out is riding on borrowed money.

The total-debt and debt-to-equity series, which only the second data source carries, are not drawn on this page: its two data sources disagree by up to 32% on reported income across 14 comparable periods. A figure two sources cannot agree on is not drawn — the gap is a decision, not missing data.

→ Who owns this, and are they adding or leaving? Next: Domestic institutions added 7.0 points over 8 quarters.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Domestic institutions added 7.0 points of Zen Technologies Ltd over 8 quarters, the biggest move on the register. That takes domestic institutions to 10.4% of the company. Promoters moved −6.6 points over the same window, to 48.5%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: +7.0 points over 8 quarters to 10.4%; Promoters: −6.6 points over 8 quarters to 48.5%; Foreign institutions: +3.4 points over 8 quarters to 6.5%.

Why the register moved: domestic institutions drove it (+7.0 points), absorbed on the other side by promoters (−6.6 points) — steady accumulation by institutions reading the same numbers this page reads.

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Zen Technologies Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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