Paras Defence share price

Paras Defence & Space Technologies Secures Rs 42.05 Crore Order, Shares Hit Upper Circuit

Paras Defence & Space Technologies Ltd. hit the 5% upper circuit today on receiving a new order worth ₹42.05 crore from Opto Electronics Factory (OLF). The current market price of Paras Defence shares on the BSE stands at ₹1,008.35, giving the company a market capitalization of ₹4,063.01 crore. Operating within the aerospace and defense sector, Paras Defence has shown substantial stock movement over recent months, with gains of over 38% in the last six months but a dip of 22% in the past three months.

New Order from Opto Electronics Factory

According to an exchange filing dated October 30, 2024, Paras Defence secured an order from the Opto Electronics Factory (OLF), a unit of India Optel Ltd., under the Ministry of Defence. The contract, valued at approximately ₹42.05 crore (plus applicable taxes), involves the supply of five types of Electronic Control Sub-Systems used in the Thermal Imaging Fire Control System (TIFCS) provided by OLF to the Indian Armed Forces. This order reinforces Paras Defence’s role in supporting India’s defense sector.

Paras Defence Shares: Recent Performance

The company’s stock has seen considerable volatility. The 52-week high for Paras Defence shares on the BSE was ₹1,592.75 (recorded on July 5, 2024), while the 52-week low was ₹608.75 (recorded on March 28, 2024). Despite an 8% decline in the last month, Paras Defence shares have surged 47% over the past year and rallied more than 7% over the past three years, demonstrating a solid growth trajectory in the long term.

Q2 Financial Results: Net Profit Surges 45% YoY

For the quarter ending September 30, 2024, Paras Defence reported a notable 45% year-over-year increase in net profit, exceeding analysts’ expectations. The company posted a consolidated net profit of ₹12.70 crore, up from ₹8.76 crore in the same quarter last year. Revenue from operations also increased by 42% to ₹87.09 crore, while operating income saw a 46% YoY jump to ₹22.75 crore. This financial performance highlights the company’s growth capabilities and resilience in the aerospace and defense sector.

Shareholding Patterns

There have been significant shifts in institutional holdings in Paras Defence shares over recent quarters. Foreign Institutional Investors (FIIs)/Foreign Portfolio Investors (FPIs) raised their stake from 0.13% to 2.97% in the June 2024 quarter, with the number of FII/FPI investors increasing from 13 to 16. Institutional Investors increased their holdings from 2.88% to 3.04%, while Mutual Funds reduced their stake from 2.75% to 0.06%. Notably, the Abu Dhabi Investment Authority – Monsoon holds a 2.44% stake in the company, indicating strong international interest.

About Paras Defence & Space Technologies

Paras Defence & Space Technologies specializes in a broad range of defense and space products and solutions. The company’s operations focus on two core verticals: Optics & Optronic Systems and Defence Engineering. Its offerings encompass Defense Electronics, EMP Protection Solutions, and Heavy Engineering. Paras Defence is a vital player in the defense sector, supplying innovative and high-precision technology critical to national security.

Conclusion

Paras Defence & Space Technologies has solidified its presence in the aerospace and defense sector, supported by strong financial results and a recent order from the Ministry of Defence. With a healthy stock performance and increased institutional interest, Paras Defence shows promising potential for growth in the high-demand defense technology space. Paras Defence share price, The company’s focus on specialized products and strategic collaborations positions it well for continued success.