Zen Technologies doing well at the markets today. Know why

Zen Technologies Ltd., a maker of simulators and training software for the defence markets, rose near record highs after the company said the government's recent moves to lay more emphasis on sourcing defence equipment locally put it on a strong footing in the coming quarters.

In a presentation made to investors, Zen said the Indian defence simulator market was estimated at 6,000 crore rupees annually and the immediate addressable market was seen in excess of 500 crore rupees where orders were likely to be placed. Zen added it had prototypes ready for requirements in the near future.

As a result, Zen rose 3.40 rupees, or 3.84 percent, to 90.55 rupees on the National Stock Exchange, where 49,000 shares were traded compared with a 1-week average of 164,000 shares.

Zen's market capitalisation has surged 7 times in the past one year to 609 crore rupees on unabated enthusiasm for defence companies. The stock trades 6.3 times its book value of 14.3 rupees.

(Image credits: Indiatimes)