One of the small-cap defence stocks engaged in the designing, developing, manufacturing, and testing of a variety of defence and space engineering products and solutions. The stock has hit a 5 percent upper circuit after inaugurating an advanced optical systems testing facility in Navi Mumbai
Stock Price Movement:
In Wednesday’s trading session, Paras Defence and Space Technologies Limited‘s stock surged by 5 percent, reaching an upper circuit of Rs. 1,025.10 per share on Monday, up from its previous closing price of Rs. 976.30 per share.
Since then, the share has retreated and is now trading at Rs. 1,010. As of November 25, 2024, the company’s market capitalization is approximately Rs. 4,073.69 crore.
What Happened:
Paras Defence and Space Technologies Limited has inaugurated its advanced, state-of-the-art optical systems testing facility in Navi Mumbai, Maharashtra. The facility will play a key role in the development of hyperspectral and optical systems for space and defence applications.
The company is an investment of Rs. 500 crore over the next few years and aims to build India’s first advanced optical systems development park. This facility will contribute to the growing space technology market, projected to exceed $1 trillion by the end of the next decade, with a CAGR of 7.5%.
Customer Base:
Paras Defence and Space Technologies Limited boasts a diverse customer portfolio, including major Indian organizations like ISRO, BrahMos, HAL, DRDO, Bharat Electronics, and Garden Reach Shipbuilders. The company’s international clientele features prominent companies such as Rafael Advanced Defense Systems, Israel Aerospace Industries, Elbit Systems, Controp, Stelop, Tae Young Optics, and Chaban Group.
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Recent quarter results and ratios:
Paras Defence and Space Technologies Limited’s revenue has increased from Rs. 61 crore in Q2 FY24 to Rs. 87 crore in Q2 FY25, which has grown by 42.62 percent YOY. The net profit of Paras Defence and Space Technologies Limited has also grown by 44.44 percent, from Rs. 9 crore in Q2 FY24 to Rs. 13 crore in Q2 FY25.
Paras Defence and Space Technologies Limited’s revenue and net profit have grown at a CAGR of 10.53 percent and 9.57 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE should be 10.3 percent and 7 percent, respectively. The debt-to-equity ratio of the company is to be 0.15x, which shows
the company is almost debt-free. Paras Defence and Space Technologies Limited’s EPS is to be Rs. 11.6.
Shareholding Pattern:
In September 2024, Paras Defence and Space Technologies Limited had a majority stake held by the promoters at 58.94 percent, foreign institutional investors at 3.46 percent, domestic institutional investors at 0.63 percent, and the public at 36.96 percent.
Company Overview:
Paras Defence and Space Technologies Limited specializes in the design, development, manufacturing, testing, and commissioning of advanced products and systems for defence and space applications. The company operates in four segments, which include defence & space optics, Defence electronics, heavy engineering, and electromagnetic pulse protection solutions.
Written By – Nikhil Naik
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