This drone stock zoomed 45% in just three days. Here’s all you need to know
investing in drone stocks has attracted significant attention. One such drone company, in particular, has gained significant investor's attention by surging over 45% in the past three days. The company is none other than Zen Technologies.
Shares of the company jumped 13.3% intraday to hit a fresh 52-week high on 13 July 2023. Here's why the stock is up. Zen Technologies achieved a major milestone on 11 July 2023 by securing a significant export order valued at approximately ₹3.4 billion (bn) (around US$ 41.5 million).
This success comes shortly after the company's announcement on 6 July, where it won a ₹1.6 bn order from the Government of India. The recent order from the export markets aligns with the government's Indigenous Design and Development (IDDM) plan, which emphasizes the use of Indian intellectual property and a minimum of 60% domestically manufactured content. Zen Technologies stood out as the sole vendor meeting these strict criteria, further establishing its position in the industry.
As a result of these consecutive wins, Zen Technologies' shares experienced a significant upswing in the market. Going forward, the management foresees significant order wins in the future, driven by their active participation in various defence events. Additionally, they anticipate securing more substantial orders due to the Indian government's aggressive procurement activities.
A major catalyst for this growth is the government's recent policy liberalization, which allows for the global export of drones categorized for civilian use. Previously restricted under the SCOMET list, these drones can now be sold worldwide, opening up vast international markets and boosting the company's potential for expansion. Furthermore, the
. Read more on livemint.com
