The shares of this small company clocked a 5 percent upper circuit in Thursday’s trading session after receiving a license to make key defence products. In just six months the stock has delivered more than 70 percent return to its shareholders.
Price Movement:
With a market capitalization of Rs. 4,992 crores, the shares of Paras Defence and Space Technologies Ltd started Thursday’s trading session on a higher note at Rs. 1,282 compared to its previous close of Rs. 1,232.95. During the trading session, the shares clocked a 5 percent upper circuit at Rs. 1,294 apiece.
What Happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced that the Department for Promotion of Industry & Internal Trade (DPIIT) granted an industrial license to establish an industrial undertaking for manufacturing several items.
This license permits the company to set up a facility for producing various products, including infrared and thermal imaging equipment, electro-optic systems, radar systems and their sub-systems, modules and control assemblies, optoelectronic assemblies, and border security surveillance systems.
Also Read
Additionally, the company mentioned that the license is valid for around 15 years and the industrial undertaking to manufacture these items will be located in Navi Mumbai, Maharashtra.
Financials:
Looking at the company’s financial statements, the revenue increased by 5 percent from Rs. 80 crores during the March quarter to Rs. 84 crores in the June quarter. In addition, the net profits zoomed by 40 percent from Rs. 10 crores to Rs. 14 crores during the same timeframe.
Recent Development:
Earlier, the company had received an order from Larsen and Toubro Limited valued at approximately Rs. 305 crores for manufacturing and supply of 244 nos. of Sight 25HD EO (Electro-Optics) System along with Extended Warranty Charges and Integrated Logistics Support Package, for their CIWS Program.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 7.21 percent and a return on capital employed (RoCE) of 9.80 percent for the period spanning FY22-23. Additionally, the net profit margin stood at 11.86 percent during the same timeframe.
Customer Base:
Paras Defence and Space Technologies has a diverse customer base that includes government entities like the Defence Research and Development Organisation (DRDO), Indian Space Research Organisation (ISRO), Bharat Electronics, Hindustan Aeronautics Limited (HAL), and various shipyards and laboratories
The company also serves private sector clients such as Godrej, Larsen & Toubro, Tata Power, Tata Consultancy Services, Kirloskar Brothers, and Solar Industries India.
Company Profile:
Paras Defence and Space Technologies (PDST) is primarily engaged in the designing, developing, manufacturing, and testing of a variety of defence and space engineering products and solutions.
Written By Vaibhav Patil
Also Read
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
