Shares of Zen Technologies Ltd. hit a 20% lower circuit on Monday, February 17, dropping to the day’s lowest level. This marks the stock’s steepest decline since March 12, 2020.

After surging over sixfold in under two years, Zen Technologies witnessed its sharpest drop in five years. The broader market sell-off has impacted even Dalal Street’s favorites this time.

The defence company posted a net profit of ₹40 crore in the December quarter, compared to a profit of ₹30.58 crore in the same quarter a year ago. Revenue climbed 53% to ₹152 crore. EBITDA surged 42% to ₹66 crore in the quarter, while EBITDA margins slipped to 38.01% this quarter.

The company’s total order book as on December 31 2024 stood ₹816.91 crore.

Brokerage firms such as Motilal Oswal, ICICI Securities and Nuvama have ‘Buy’ ratings on the counter, with target prices ranging from ₹2200 to ₹2535 per piece.

In terms of technicals, the relative strength index (RSI) of Zen Technologies stood at 23.9, signaling it’s trading in the oversold zone. This implies that the stock may rebound.

Zen Technologies stock has a one-year beta of 1.1, indicating high volatility during the same period. Zen Technologies shares are trading lower than the 5 day, 10 day, 20 day, 50 day, 100 day and 200 day moving averages.

Shares of Zen Technologies are locked at ₹1,079.35. The stock is witnessing profit booking from higher levels, having surged 34% over the last 12 months.