This small-cap defence stock engaged in the designing, developing, manufacturing, and testing of a variety of defence and space engineering products and solutions, jumped 10 percent after securing an order worth Rs. 142.31 crores from the Ministry of Defence, Government of India.
Stock Price Movement:
With a market capitalization of Rs. 4,040.25 crores, the share of Paras Defence and Space Technologies Limited has reached an intraday high of Rs. 1,046.95 per equity share, rising nearly around 9.79 percent from its previous day’s close price of Rs. 953.60. Since then, the stock has retreated and is currently trading at Rs. 1,002.70 per equity share.
What Happened:
Paras Defence and Space Technologies Limited has received a significant order worth Rs. 142.31 crores from the Centre for High Energy Systems & Sciences (CHESS), DRDO, Ministry of Defence, Government of India.
The order is for the development of a Laser Source Module and its integration with a Beam Control System on a mobile platform. This project is part of a high-power laser system aimed at anti-drone and anti-missile applications and is scheduled for completion within 24 months.
Order Book:
As of September 30, 2024, the company has received a good amount of new orders over the past four years, with orders totalling around Rs. 881 crore in the last 18 months. As of that date, the company has an order backlog of Rs. 850 crore, which is more than three times its expected revenue for FY2024. This gives a clear outlook for steady revenue in the coming years.
Customer Base:
The company serves a broad range of customers, including key government organizations like the Indian Ordnance Factories, DRDO, and ISRO, as well as private sector leaders such as Godrej, Tata, and L&T. It also has a strong international presence, working with well-known names like Rafael, IAI, and Elbit Systems across various industries.
Business operations:
The company offers a wide range of products and solutions in two key areas, such as Defence & Space Optics and Optronic Systems. The company has two manufacturing facilities, one in Ambernath (Thane) and the other in Nerul (Navi Mumbai)
Recent quarter results:
Paras Defence and Space Technologies Limited’s revenue has increased from Rs. 64 crore in Q3 FY24 to Rs. 86 crore in Q3 FY25, which has grown by 34.38 percent. The net profit has also grown by 133.33 percent from Rs. 6 crore in Q3 FY24 to Rs. 14 crore in Q3 FY25.
Written By – Nikhil Naik
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.
