Choice Institutional Equities has issued a buy rating on Zen Tech with a target price of ₹2,150 in its research report dated February 03, 2026. According to the broker's analysis, the recommendation is based on the company's strategic positioning and execution capabilities in India's defence technology sector. The target price implies a valuation of 35x FY28E EPS, reflecting confidence in the company's growth prospects.
The broker's interpretation of management's tone as measured and pragmatic is central to their bullish outlook. As reported by Choice Institutional Equities, the proactive recalibration of FY27–28E revenue guidance downwards to ~₹4,000 crore reflects a purposeful effort to reset investor expectations rather than overpromising. This strategic adjustment is driven by procurement timing and process realities rather than demand weakness. The company has secured ₹930 crore in orders over the past four months, significantly boosting the order book to ₹1,427 crore, representing 1.5x FY25 revenue.
According to the broker's assessment, ₹1,100 crore of the order book is executable over the next 12–18 months, positioning Zen Tech for steady near-term growth. The company's order momentum has re-accelerated meaningfully, providing a strong foundation for sustained execution. This execution-focused approach represents a shift from aspirational commentary to practical implementation, as noted in the broker's analysis.
Choice Institutional Equities expects meaningful acceleration in order inflows and execution over FY27–28E, supported by the EU-India trade agreement which provides unrestricted access to Western markets. As reported by the broker, this development, alongside strong interest from other international customers, is likely to drive both earnings recovery and a re-rating of the stock. Following the recent correction, the broker believes Zen Tech appears attractive in India's defence technology sector.
The broker's positive outlook comes amid broader concerns about market integrity, as the National Stock Exchange (NSE) has issued stern warnings against illegal trading operations operating outside regulatory frameworks. These schemes, often leveraging social media and mobile applications, promise assured returns and operate under names like 'dabba trading' and 'Tradezone.' Violations under the Securities Contracts (Regulation) Act, 1956 can result in imprisonment up to 10 years or fines of ₹25 crore. The proliferation of such scams is linked to India's explosive growth in demat accounts, with unique investors crossing the 12-crore mark by September 2025, creating fertile ground for fraudulent operations.
