I hold this stock substantially.Bought more than a year back and had been buying all through the meltdown.I have a lot of belief in the management and their ability to execute orders in hand.

I also asked this same question on my portfolio thread today.But now that i think a little bit more abt it,the reason MAY be what i read in this year's annual report that i received last weekend.

Along with its s/w simulations business,this company also plans to leverage a rule which says any foreign player who wants to get a share of defence business in india has to buy parts/expertise worth 30% of their business from a local player.Zen has a lot of expertise in the field of selling to indian defence organizations,which apparently is a long drawn process.So all in all their next phase of growth will come from aligning with big foreign players in the defence industry and sharing zen's expertise with them.

This is a long term vision,i dunno if its responsibe for the price rise.

the company has been buying back its shares regularly. that makes it a really good deal for investors.

Its ratios like ROE and ROCE have been consistently high. ROE at around 25 since 2005 while ROCE between 23 and 30 during this period.

see the link here:


Edited by shivkumar - 28/Sep/2009 at 11:29am

There was supposed to be a Board meeting to consider the results and decide on dividend. Todays BSE announcement mentions dividend of 4.5 Rs, but nothing on the results. Any idea why the results were not declared ? I wrote to the investor id of Zen, but no reply to that.

I've held this stock before.The management is quite capable but the business is not easy.They are planning to do something new and innovative,so all the risks associated with start ups exist here.Just keep an eye out for their order book numbers.I exited the stock last year when i saw the order book deteriorate.