Synopsis:
Paras Defence and Space Technologies Ltd shares are in focus as it gained about 2.7% after signing MOU with Cielo Inertial Solutions Ltd an Israel based company.
Private sector Defense company which is primarily engaged in the designing, developing, manufacturing, and testing of a variety of defence and space engineering products and solutions is in the limelight as it signed an MOU with an Israel based company due to which it jumped more than 2%.
With the market cap of Rs 5,693 Crore, Paras Defence and Space Technologies Ltd shares made a high of about Rs 726.7 compared to its previous day closing of Rs 707.6 which turns out to be around 2.7% upside move.
Understanding the MOU and its benefits
The MOU is with an Israel based company called “Cielo inertial solutions” . It is a global technology expert in inertial solutions and an Israeli manufacturer of Closed Loop FOGs, IMUs, GyroCompass, North Finding Systems and INS.
PARAS and CIELO will combine their respective capabilities in order to promote and pursue opportunities in India for the adaptation, marketing, sale and production of Inertial Sensors and Closed Loop FOG-based Inertial Solutions.
Financials and others
Paras Defence and Space Technologies LtdI is the only Indian company to manufacture cameras for drones and UAVs and its share price return stands decent at 29.5% return in the last one year.
It has sales worth Rs 93 crore as of Q1 FY26 which has increased compared to Q1 FY25 sales of Rs 84 Crore giving a 11.5% increase ,YoY basis . There is no Growth in terms of net profit as it stands at Rs 14 Crore in Q1 of both FY25 and FY26.
Its consolidated order book stands at Rs 928 crore as of FY25 out of which 40% comes from defence engineering and remaining 60% comes from optics and optronic systems.
The company has made a steady 3 year compounded sales growth of about 26% and a 3 year compounded profit growth of 32%. The debtor days for the company have improved from 33.2 days to 18.5 days.
Written by Leon Mendonca
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