Drone tech company Zen Tech shares rally 31% in 5 days. Should you buy?

Zen Tech’s order book has witnessed a significant surge to ₹402.6 crore as on September 01, 2021, as against an order book of ₹191.6 crore on 30th June 2021, the company informed in an exchange filing on Wednesday.

“Things are improving for the company in the last few days where new drone rules are another positive trigger for its future growth. Technically, it is taking out a key resistance level of 107 and that may lead to a fresh rally in this counter towards 135 level where 115 is an immediate hurdle. On the downside 97-94 area has become a strong demand zone,” Santosh Meena, Head of Research, Swastika Investmart said.

Zen Technologies Limited is leading provider Defence Training Solutions, headquartered in Hyderabad, India with offices in India and USA. Incorporated in 1993, Zen Technologies Limited designs, develops and manufactures state-of-the-art combat training solutions for the training of defence and security forces worldwide.

Rohit Singre, Senior Technical Analyst at LKP Securities said that “Breakout has been witnessed on daily as well as on weekly chart. Prices moved above its strong hurdle zone of 105 and ang close above 105 can push prices northward. Strong volume activity has been seen at the time of breakout which shows strength. Positional stop out level will be 95 on closing basis and targets 130,”

The company manufactures land based military training simulators, driving simulators, Live range equipment and Anti drone Systems. Heavy lift logistics drones (HLLDs) from Zen Technologies offers advanced capabilities to fulfil the role of providing reliable logistics support in typically challenging environments and even in combat situations.