Defence stock engaged in designing, developing, manufacturing, and testing a variety of defence and space engineering products hit a 5 percent upper circuit in the day’s trade upon receiving a new work order worth Rs. 42 Crores from the Ministry of Defence.
What Happened
Paras Defence and Space Technologies Limited has received a new work order from Opto Electronics Factory, a Unit of India Optel Ltd., Govt. of India Enterprise, Ministry of Defence, Dehradun, for a consideration of Rs. 42.05 Crores
The said work order is for the supply of 5 types of electronic control subsystems used in thermal imaging fire control systems (TIFCS) to be delivered by OLF to the Indian Armed Forces, and Paras Defence has to execute the work order within 24 months.
Recent Updates
Paras Defence and Space Technologies Limited has recently 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 43 percent from Rs. 61 Crores in Q2FY24 to Rs. 87 Crores in Q2FY25, accompanied by profits of Rs. 9 Crores to Rs. 13 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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