Defence and Space engineering stock with clients like ISRO, DRDO, HAL, and many others, engaged in designing, developing, manufacturing, and testing a variety of defence and space equipment hits a 5 percent upper circuit in the day’s trade upon receiving a work order from Larsen & Toubro worth Rs. 305 Crores.
Price Action
With a market capitalization of Rs. 4,708 Crores, the shares of Paras Defence and Space Technologies Limited hit a 5 percent upper circuit at Rs. 1,207.40 per equity share, from its previous day’s close price of Rs. 1,149.95.
What Happened
Paras Defence and Space Technologies Limited’s associate company Controp-Paras Technologies Private Limited has received a new work order from Larsen and Toubro Limited for a consideration of ~Rs. 305 Crores
The said work order is for the Manufacturing and supply of 244 nos. of Sight 25HD Electro-Optics System along with Extended Warranty Charges and ILS Package, for Larsen & Toubro’s Close-In Weapon Systems Program and the work order is to be executed within 47 months.
Also read
L&T operations for the Indian Air Force
Larsen & Toubro (L&T) is working on a Close-In Weapon Systems (CIWS) program for the Indian Air Force (IAF) to protect assets from aerial threats. The CIWS will be deployed at various locations across India and will include
● Air defence guns
● Tracking radars
● A search radar
● A command and control shelter
● Simulators
● Communication equipment
About the Company
Paras Defence and Space Technologies Limited is primarily engaged in designing, developing, manufacturing and testing a variety of defence and space engineering products and solutions.
It has a strong customer base which includes well-known entities like DRDO, Mazagon Dock Shipbuilders, ISRO, BEL, HAL, Tata Power, Rafael Advanced Systems, Department of Atomic Energy, Israel Aerospace Industries, and many more.
Financials and Ratios
Its Revenue from operations grew by 73 percent from Rs. 48 Crores in Q1FY24 to Rs. 84 Crores in Q1FY25, accompanied by profits of Rs. 6 Crores to Rs. 14 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 7 percent, and a return on capital employed (ROCE) of 9.8 percent. It has reported a debt-to-equity ratio of 0.15.
Written by: Bharath K.S
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