Shares of Paras Defence and Space Technologies surged by 5% in Monday morning trades, hitting the upper circuit after the company announced new order inflows. This order, sourced from a Ministry of Defence entity, has further fuelled positive sentiment around Paras Defence, as investors show a growing interest in how these strategic contracts impact share performance.
With such robust orders and recent financial performance, many are looking to invest in stocks like Paras Defence to capitalise on the defence sector’s growth.
Paras Defence and Space Technologies’ share price opened at ₹965 on the BSE on Wednesday, slightly higher than the previous close of ₹960.36. Shortly after opening, it jumped by up to 5% to hit its upper price band at ₹1,008.35, reflecting heightened investor confidence. This stock movement has caught the attention of those looking to invest in stocks, especially within the defence and space sectors, where government orders significantly impact market sentiment.
The latest rally was bolstered by Paras Defence’s announcement of a significant order from the Ministry of Defence’s unit, India Optel Ltd.’s Opto Electronics Factory (OLF) in Dehradun. The company will supply five types of electronic control sub-systems essential for the thermal imaging fire control system (TIFCS), valued at approximately ₹42.05 crore (excluding taxes).
The timeline for completing this order stands at 24 months, strengthening the company’s revenue visibility. For those planning to invest in stocks, Paras Defence’s strategic government contracts underscore the potential for long-term value.
Paras Defence’s robust Q2 financial performance has continued to energise investor interest. The company recorded net sales of ₹87.09 crore from July to September 2024, marking a substantial 42.05% year-on-year increase compared to ₹61.31 crore in the same quarter last year. The rise in earnings has contributed to the stock’s appeal among investors, especially for those aiming to invest in stocks with solid revenue growth and promising defence sector ties.
The Q2 net profit for Paras Defence rose by 47.13%, reaching ₹13.86 crore compared to ₹9.42 crore in September 2023. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) also grew, showing a 46.75% year-on-year increase to ₹24.42 crore from ₹16.64 crore a year ago. Such growth metrics make Paras Defence an attractive option for those considering an investment strategy to invest in stocks with upward financial trajectories.
Year-to-date, Paras Defence’s share price has climbed by 33% and has increased by more than 47% over the past year, displaying solid momentum in the defence sector. As a result, the stock is drawing attention from those keen to invest in stocks that offer stability coupled with long-term growth potential. The company’s recent performance demonstrates its ability to leverage sector demand effectively.
For investors, the company’s consistent growth and expanding government contracts offer a promising investment pathway. By choosing to invest in stocks like Paras Defence, which consistently aligns with national defence priorities, investors can position themselves in one of India’s fast-growing sectors.
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