Defence stock engaged in designing, developing, manufacturing, and testing a variety of defence and space engineering products jumped upto 5 percent in the day’s trade upon receiving a Licence under the Arms Act, for indigenous production, and upgradation of Defence weapon and guard systems.
Price Action
With a market capitalization of Rs. 4,354 Crores, the shares of Paras Defence and Space Technologies Limited were trading at Rs. 1,075.25 per equity share, up 0.7 percent from its previous day’s close price of Rs. 1,067.90.
What Happened
Paras Defence and Space Technologies Limited primarily engaged in designing, developing, manufacturing, and testing a variety of defence and space engineering products and solutions, has been granted a License under the Arms Act, 1959, from the Department for Promotion of Industry & Internal Trade, Ministry of Commerce & Industry, Government of India.
The license authorizes to engage in the design, development, manufacturing, assembly and upgrading of cannons for naval gun systems, air defence gun systems, airborne cannon systems (helicopter, fighter jet), armoured fighting vehicles based on cannon systems, mounted cannon systems of specified calibers with a proposed annual capacity of 100 nos.
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 operates in application areas of Rockets & Missiles, Electronic Warfare & Surveillance, Battle Tanks & Armoured Vehicles, Naval Systems, Electro Magnetic Shielding, Space Imaging Systems, Space Research, Drone Technologies and many more.
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 10.3 percent. It has reported a debt-to-equity ratio of 0.15.
Written by: Bharath K.S
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