Zen Technologies Limited shares have experienced a sharp decline, shedding 30% in just two sessions after posting its Q3 FY25 earnings. The stock has been on a downward spiral, losing 60% in 2025 and hitting lower circuits on consecutive days. Despite these losses, brokerages have maintained a "Buy" rating, though they have revised price targets downward due to concerns over order inflows.
Zen Technologies shares plunge amid order inflow concerns
The stock hit a 10% lower circuit at ₹971.50 on Tuesday, following a 20% drop on Monday, bringing its market capitalisation down to ₹8,758 crores. The recent correction has pushed Zen Technologies into oversold territory, with an RSI of 16.2, well below the threshold of 30, indicating a potential technical rebound.
Analysts noted that Q3FY25 EBITDA of ₹443 million was in line with full-year guidance, but uncertainty around order inflows remains a key challenge. As a result, the brokerage lowered its target multiple from 45x to 35x, revising the price target to ₹1,970 from ₹2,535 but still maintaining a Buy rating. Investors looking to buy shares online should closely monitor how the order pipeline progresses in the coming quarters.
Muted earnings and price target downgrades
Zen Technologies' Q3FY25 results showed a 44.3% YoY revenue jump but a 41.4% QoQ decline to ₹1.42 billion, partly due to a ₹600 million shipment delay. The company still expects to meet its ₹9 billion revenue guidance for FY25, but analysts remain cautious about near-term growth.
Analysts also lowered its price target from ₹2,200 to ₹1,650, citing a third consecutive quarter of sluggish order inflows. Despite revising earnings estimates downward, the brokerage maintains a Buy call, projecting a 38% revenue CAGR and a 20% return on equity (RoE) from FY25 to 27. Investors considering whether to buy shares online may find long-term potential, but they should be prepared for short-term volatility.
What's next for Zen Technologies?
Zen Technologies' long-term prospects remain tied to defence sector orders, simulator technologies, and anti-drone solutions. Analysts expect order flows to improve beyond FY26 as the company expands capabilities and secures larger contracts. However, delays in tender finalisation could continue to weigh on the stock in the near to medium term.
The stock remains volatile, with a one-year beta of 1.1, and is trading below all major moving averages. While brokerages have cut their price targets, their "Buy" ratings suggest confidence in the company's long-term growth. Investors looking to buy shares online should track order inflow trends and monitor technical indicators for potential entry points.
Summing up
Zen Technologies shares have seen a sharp correction, losing 30% in two days and 60% in 2025. Brokerages have lowered price targets due to uncertainties in order inflows, though they continue to maintain Buy ratings. The stock is currently oversold, with an RSI of 16.2, and is trading below key moving averages.
However, as of 11:30 AM on February 19, 2025, Zen Technologies' shares rebounded 10%, hitting an upper circuit at ₹1,069.20, after a 31% drop over the previous two sessions. Despite a 40.8% QoQ decline in net profit for Q3 FY25, analysts remain optimistic, with target prices ranging from ₹1,650 to ₹1,970.
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