Zen Technologies (ZENTEC)

FairStock Score: 38/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Zen Technologies as a defense-focused fast grower, but the price leaves no room for error. The long-term record is impressive: five-year revenue CAGR of 45.57%, ROCE of 37.22%, ROE of 15.46%, and debt/equity of only 0.01. The balance sheet looks strong, with Piotroski F-Score 7/9 and Altman Z-Score 5.35, and promoters own 48.51%, aligning them with shareholders. The latest quarter also shows ₹178 Cr sales and ₹56 Cr net profit. However, the current trend is weak: sales growth is -8.00% and profit growth is -21.30%. Free cash flow is -₹969 Cr, which I dislike because reported profits are not converting into cash. Valuation is expensive: P/E 92.58, P/B 9.29, PEG 2.43, and dividend yield only 0.05%. Graham Number is ₹367.46 against a ₹1857.20 price, giving a margin of safety of -270.08%. EV/EBITDA of -214.62 also looks unusual. FairStock Score of 38/100 confirms a mixed picture. I cannot verify a durable moat from the figures given; high ROCE is a positive clue, but current negative growth and cash burn keep me cautious. At ₹16,704 Cr market cap, the market is already baking in strong future execution while recent numbers are shrinking. In Graham's terms, I need a margin of safety, not a negative one. I would wait for sales and profit to turn positive, cash flow to improve, and valuation to offer a margin of safety before considering it. Until then, the risk/reward does not meet my standard.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer