Zen Tech Profit Drops
- 17th February 2025
Aaj Ka Bazaar
The US major indices ended on a mixed note in Friday’s trading session, with Nasdaq climbing, DJIA inched down, and S&P largely flat. The mixed sentiment was likely a combination of a slew of corporate earnings and a slip in treasury yields. Overall, however, the sentiment remained positive, with Trump’s halt on imposing new tariffs. The positive sentiment was well-reflected in the Asian markets after both Nikkei and Hang Seng were observed to be trading in the green territory. The positivity in the Japanese markets was further buoyed by the upbeat GDP growth. The Indian markets are also expected to make a positive opening during the day, as indicated by the GIFT Nifty. The overall sentiments are expected to positive, driven by favourable macroeconomic indicators, such as the delay of reciprocal tariffs by the U.S. and a stable policy environment.
Markets Around Us
BSE Sensex –75,725.99 (-0.28%)
Nifty 50 – 22,864.60 (-0.28%)
Bank Nifty – 48,849.35 (-0.51%)
Dow Jones – 44,575.48 (0.07%)
Nasdaq – 20,037.25 (0.46%)
FTSE – 8,732.46 (0.00%)
Nikkei 225 – 39,207.85(0.15%)
Hang Seng – 22,533.45 (-0.38%)
Sector: Aerospace & Defense
Zen Tech drops 20% after Q3 results
Zen Technologies’ shares hit a 20% lower circuit at ₹1,080 on February 17 after its Q3 results. The company’s net profit grew 22% year-on-year to ₹38.62 crore, up from ₹31.67 crore, mainly due to higher other income. However, profit nearly halved sequentially from ₹65.24 crore last quarter. Revenue followed a similar pattern, rising 44% YoY to ₹141.52 crore but dropping 41% from ₹241.69 crore in Q2, indicating a slowdown. EBITDA margins weakened YoY to 35.90% from 47.34% but slightly improved from 35.12% last quarter. Despite the decline, the company remains optimistic about meeting its financial targets. Its order book stood at ₹816.91 crore, ensuring a strong pipeline. Zen also transferred 9,000 ESOP shares and announced multiple acquisitions, including full ownership of Applied Research International and ARI Labs, a 45.33% stake in Bhairav Robotics, and a 51% stake in Vector Technics, signaling future growth plans.
Why it Matters:
Zen Technologies’ sharp sequential revenue and profit decline signal short-term weakness, impacting investor confidence. However, a strong order book and strategic acquisitions highlight long-term growth potential. Traders should watch execution trends and margin stability for future performance.
NIFTY 50 GAINERS
BAJAJFINSV– 1880.25 (2.12%)
SUNPHARMA – 1732.1 (1.86%)
ADANIENT – 2182.1 (1.37%)
NIFTY 50 LOSERS
M&M – 2841.1 (-3.45%)
ICICIBANK – 1238.35 (-1.73%)
AXISBANK – 982.45 (-1.51%)
Secto: Pharmaceuticals
Concord Biotech drops 12% after weak Q3
Concord Biotech shares dropped nearly 12% on February 17, continuing a six-day losing streak after weak Q3FY25 results. The stock traded at ₹1,490 as of 9:54 AM. The company reported a consolidated net profit of ₹75.9 crore, down 2.19% YoY from ₹77.6 crore last year. Revenue rose slightly by 1% to ₹244.2 crore from ₹240.8 crore. EBITDA declined 7.46% to ₹98 crore from ₹105.9 crore, while EBITDA margins fell to 40.1% from 44% in the previous year, reflecting profitability pressures. Concord Biotech specializes in manufacturing Active Pharmaceutical Ingredients (APIs) through fermentation and semi-synthetic processes, focusing on immunosuppressants, oncology, antifungal, and antibacterial drugs. It operates two API plants and one finished formulation unit near Ahmedabad, Gujarat. The stock’s recent decline signals investor concerns over sluggish growth and margin compression, making future performance and market sentiment key areas to watch.
Why it Matters:
Concord Biotech’s falling margins and weak profit growth raise concerns about future earnings potential. The stock’s continued decline signals negative investor sentiment despite stable revenue. Traders should watch for margin recovery and growth catalysts to gauge long-term prospects.
Around the World
Asian stocks traded mostly flat to lower on Monday due to concerns over U.S. trade tariffs and high interest rates. Japan’s Nikkei 225 and TOPIX rose slightly but showed little excitement despite stronger-than-expected GDP data, as private spending cooled. Chinese tech stocks, which had surged on AI optimism, paused their rally, though Tencent jumped 6% after testing DeepSeek integration. Concerns over a potential U.S.-China trade war also weighed on sentiment. Australia’s ASX 200 dropped 0.8% from record highs as investors awaited the RBA’s expected rate cut. South Korea’s KOSPI gained 0.8% on AI-driven chip stock momentum, while Singapore’s Straits Times index rose 0.4% despite weak export data. Taiwan’s TSMC climbed 1.4% on reports of a possible Intel acquisition. India’s Nifty 50 futures pointed to a slightly positive open, but fears of higher U.S. tariffs kept investors cautious. Overall, market sentiment remained mixed across the region.
Option Traders Corner
Max Pain
Nifty 50 – 22,864
Bank Nifty – 48893
Nifty 50 – 22,945 (Pivot)
Support – 22,758, 22,587, 22,399
Resistance – 23,117, 23,304, 23,475
Bank Nifty – 49,137 (Pivot)
Support – 48,681, 48,264, 47,808
Resistance – 49,555, 50,010, 50,428
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