The shares of Paras Defence and Space Technologies hit a 5% upper circuit at ₹1,025 per share on November 25, following the launch of its state-of-the-art optical systems testing facility in Navi Mumbai, Maharashtra. This advanced centre is poised to revolutionise research and development in hyperspectral and optical systems for space and defence applications, cementing India's position in cutting-edge technology.
The stock has shown remarkable growth this year, soaring 42% as compared to the 10% rise in the Nifty 50 index. Notably, it had touched a 52-week high of ₹1,592 on July 5, 2024, underscoring its appeal in share market investment circles.
Driving India's Vision 2047
Paras Defence's focus on optical and optronics systems aligns with the Government's "Vision 2047," which positions India as a leader in the global space economy. According to ISRO Chairman S Somanath, the company's new facility enhances capabilities in high-tech manufacturing, bolstering self-reliance and innovation in space exploration. These developments have positioned Paras Defence as a key player in optical-electronic systems, crucial for industries beyond space and defence.
Strong financial performance fuels investor confidence
Paras Defence's robust financial performance further supports its strong market position. In Q2FY25, the company's net profit rose by 45% year-on-year, accompanied by a 42% YoY increase in revenue. EBITDA surged by 46% YoY, with margins improving to 26.1% from 25.3% in the previous year. Such impressive metrics make it a lucrative option for share market investment, especially for those seeking high-growth potential in defence and space technologies.
The recent reaffirmation of Paras Defence's credit ratings with a stable outlook by ICRA reflects growing market confidence in the company's operational and financial stability.
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