This multibagger defence stock rises 140% in one month. Experts see more gain1 min read . Updated: 16 Sep 2021, 11:35 AM IST
- Multibagger stock: Zen Technologies share price may go up to ₹250 apiece after some profit-booking, say experts
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Multibagger stock: After central government's ₹120 crore production-linked scheme or PLI scheme for drone manufacturing companies, stock market experts are highly bullish on Zen Technologies shares. They said that Zen Technologies is the only drone maker company, which is listed at Indian markets. They were of the opinion that the defence stock has already surged around 140 per cent in last one month after the central government unveiled liberal drone rules. However, they said that the multibagger stock may go up to ₹250 apiece after some profit-booking.
Speaking on the impact of ₹120 crore PLI scheme for drone makers; Avinash Gorakshkar, Head of Research at Profitmart Securities said, "This ₹120 crore PLI scheme for drone manufacturing companies is for 5 years and it will have long-term impact on the company. So, one shouldn't think that it will have immediate impact on the stock price of the defence company. The stock has already surged around 140 per cent in the last one month and hence profit-booking in the counter is strongly awaited. One should wait for that profit-booking and then take fresh buy position in the counter for medium to long-term. However, its single listed drone manufacturing company status is going to last long after upcoming Paras Defence IPO. Paras Defence is also in drone manufacturing."
Avinash Gorakshkar went on to add that Zen Technologies' financials are quite strong as the company has more than doubled its order book in last two months (July to August 2021) after getting an order worth ₹155 crore from the Indian Air Force in the month of August 2021.
Advising 'buy on dips' strategy to stock market investors; Sumeet Bagadia, Executive Director at Choice Broking said, "There can be some profit-booking in this defence counter as the stock has rallied around 140 per cent in last one month. Since, liquidity of this small-cap stock is low, it may hit lower circuit in upcoming few trade sessions. So, one should maintain buy on dips as it has strong support at ₹170 per stock levels. It may go up to ₹240 to 250 in immediate short-term."
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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