Paras Defence & Space Technologies stock: During Friday’s trading session, Paras Defence & Space Technologies Ltd.’s shares were trapped in an upper circuit of 20%. Additionally, during Thursday’s session, the stock had gained 7%. The stock is already approaching its October 2021 record high of ₹1,272, which it reached a few days after launching.
In an interview with CNBC-TV18, Amit Mahajan of Paras Defence said that the company’s order book should reach ₹2,500 crore by the end of the fiscal year 2028. From the current order book amount of ₹600 crore, this is almost four times as much. Mahajan added that the business is awaiting orders totaling ₹1,500 crore.
“The order book currently stands at above ₹600 crore. This is going to keep piling up as we go. Our efforts are currently converting all of these prospects, which are very high probability opportunities, into an order book for our company since the potential funnel is so large—it exceeds ₹1,500 crore,” Mahajan stated.
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Defense electronics and space application devices are produced by Paras Defence. Among other specialized equipment, it sells weapons, ammo, telescopes, and rockets.
According to Mahajan, who spoke with CNBC-TV18, the company would probably keep growing at a consistent rate of 25% to 30% annually with a 15% to 18% profit margin. Due to excessive competition, Mahajan does not have high expectations for the drone industry, but he is quite optimistic about the anti-drone industry and its future potential.
The good news is that, since maximum value is added during the manufacturing process, raw material inflation does not affect companies like Paras. That being said, notwithstanding what I may say, the top vertical for revenues and margin contribution is optics and optronic systems. Due to our important function and the attention we receive from our clients, we can attract a lot of attention. In my opinion, only Paras is doing what we are attempting to do. Therefore, we have a healthy buffer,” he stated.
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Since October 19, 2021, this has been Paras Defence’s largest one-day gain. As other defense peers bounce back from their defeats on June 4, the day of the Lok Sabha election results, the stock has also moved in step with them.
The stock is in the “overbought” area, as indicated in the reading rising above 70, with today’s move putting Paras Defence’s Relative Strength Index (RSI) on the charts at 78.
At ₹1,156.9, shares of Paras Defence closed 20% above the closing price. With a 109% increase, the stock has already more than doubled in the past 12 months. The country’s third highest subscribed initial public offering (IPO) is Paras Defence, following Latent View Analytics (326x) and Vibhor Steel Tubes (320x). In September 2021, 304 times of the Paras Defence IPO were subscribed.
