Paras Defence hits upper circuit, rockets to all-time high!
Issued at 175 per share, Paras defence and space technology delivered listing gains of 185%.
The stock of Paras defence and space technology which was listed on 1st October 2021, at Rs 498.75 per share on BSE, hit its upper circuit and reached an all-time trading high of Rs 1003 today. This was a result of stock’s transfer from T-group to rolling segment, which came into effect from 18th October.
Paras defence and space technology Ltd (PDSTL) is engaged in the provision of products and solutions for Defence and Space Applications. It is involved in five business verticals, which are defence and space optics, defence electronics, heavy engineering, electromagnetic pulse protection solutions and niche technologies.
As a leading ‘Indigenously Designed Developed and Manufactured’ (IDDM) company, PSTD’s marquee clients include ISRO, DRDO, Bharat Electronics, Bharat Dynamics Ltd, Rafael Advanced Defense Systems, Israel Aerospace Industries and Hindustan Aeronautics Limited to name a few.
With the ever-increasing security threats, the Government of India, in its ‘Atma Nirbhar Bharat’ initiative, has identified the defence industry as one of its key focus areas. In the 2021-22 budget, it allocated Rs 4,78,196 crore to its defence expenditure. Owing to the rising demand in the sector, the Government of India has called for increased participation of the private sector.
PTSDL, with over four decades of experience and strong relationships with the government, is set to benefit from this development. With successful partnerships with leading national and international space and defence companies, the company has positioned itself for long term growth. It has a sharp focus on improving its product portfolio, enhancing its existing capabilities and developing its strategic position in the United States and Europe, where it sees good growth prospects across various product segments.
In FY21, the company's revenue stood at Rs 143.33 crore. Its EBITDA came in at Rs 43.4 crore and the net profit was reported at Rs 15.79 crore.
On Monday, 18th October, the company via its press release on the stock exchanges, informed that its Board of Directors have given a go-ahead for the incorporation of an Associate Company in association with Krasny Defence Technologies, which is the country’s first three-dimensional service enterprise that provides technical maintenance and logistic support for the state-of-the-art equipment/systems of the Indian Defence Forces that comprise navy, coast guard, army and air force. The proposed associate company shall be named either Paras Krasny Defence Technologies or Krasny Paras Defence Technologies or such other name which the Central Registration Centre (CRC) of the Ministry of Corporate Affairs will approve. It shall be engaged in the field of maintenance, servicing and repairs of defence equipment and naval vessels.
At 1.17 pm, the share price of Paras Defence and Space Technology Ltd was trading at Rs 1003, as against the previous day’s trading price of Rs 911.85, hitting an upper circuit of 10% on BSE.
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