Choice Institutional Equities has issued a buy rating on Zen Tech with a target price of ₹1,850 in its research report dated May 05, 2026. According to the brokerage's analysis, the company is strategically positioned to capitalize on evolving global warfare dynamics, with rising geopolitical tensions accelerating demand for cost-efficient, technology-led defence systems.
As reported by Choice Institutional Equities, the management commentary from Zen Tech is interpreted as strategically constructive, with clear emphasis on building a future-ready portfolio across anti-drone systems, interceptor drones and next-generation combat solutions. The brokerage believes Zen Tech is well-aligned with evolving global warfare dynamics, significantly expanding the company's long-term opportunity set in the defence sector.
According to the brokerage's revised estimates, Zen Tech is expected to achieve Revenue/EBITDA/PAT growth at a CAGR of 67.3%/67.3%/66.0% over FY27-29E. Choice Institutional Equities has revised its FY27E and FY28E EPS estimates by -32.6% and +0.1% respectively, based on moderately recalibrated assumptions due to slower conversion of the pipeline despite strong demand.
As noted in the report, while the company's strategic positioning is strong, order finalisation timelines remain inherently uncertain, impacted by procurement processes and budget cycles. This uncertainty in conversion timelines has led to the moderated recalibration of FY27-28E assumptions despite the positive long-term outlook for the defence sector.
