Zen technologies – A micro cap in the defense space- Can it be the next defence multibagger?

Starting a new thread on a defence based micro cap Zen technologies

They basically prepare simulators in the defence sector primarily landbased as of now. Here are a set of links all should go
through:

1. Please go through this interview

http://www.moneycontrol.com/news/results-boardroom/to-develop-simulators-worth-rs-6k-crfuture-zen-tech_2625881.html

1. Please read through the future of the simulator industry in India

http://www.defproac.com/?p=820

1. Several videos on the simulator technlogies you will find in the media section on the company website.

Here are some viewpoints to kickstart the discussion.

1. The current sales is just around 80 crores.
2. The land based simulator potential over the next 4 to 5 years is more than 5000 crores.
3. The fastest growing section is in the aviation space. Zen is foraying into it with typing up with Rockwell Collins
   http://www.zentechnologies.com/news/Zen-Technologies-Rockwell-to-unveil-collaborative-effort-at-Aero-India-2015.php
4. The CMD indicated that they are at advanced stage of negotiations for a 500 crore order (5x of current turnover).
5. Huge operating leverage in play (Above 100 crores operating margins go up to 30 percent).
6. The CMD indicated they they could make a stake sale of 24 percent to strenghthen their products especially in the aviation space.
7. The make in india push and defence offset clauses have made a sea change on the environment in the defence industry.