This Defence Stock Soars 10 per cent After Securing License to Manufacture MK-46 and MK-48 Machine Guns

A leading defence player sees its stock climb sharply after obtaining a license to produce advanced Light Machine Guns with an annual capacity of 6,000 units.

Paras Defence and Space Technologies Limited (PDST) has achieved a significant milestone with the grant of a license under the Arms Act, 1959. The license, issued by the Department for Promotion of Industry & Internal Trade, Ministry of Commerce & Industry, authorizes the manufacturing of two advanced Light Machine Guns (LMGs) – the MK-46 and MK-48. These modernized weapons come with a proposed annual production capacity of 6,000 units each, reflecting the company’s growing role in the defence manufacturing ecosystem.

Strengthening Defence Capabilities
This license enhances India’s push for self-reliance in defence. By manufacturing these advanced LMGs, Paras Defence positions itself to meet the rising domestic demand for modern weaponry, reducing reliance on imports. The approval aligns with the government’s ‘Make in India’ initiative and strengthens PDST’s reputation in the defence sector.

Diverse Business Segments
Paras Defence operates in four key segments: Defence & Space Optics, Defence Electronics, Heavy Engineering, and Electromagnetic Pulse (EMP) Protection Solutions. The company provides ultra-high precision optics, advanced electronic systems, and precision mechanical systems for critical defence and space applications. It also offers turnkey EMP protection solutions, a niche area critical to safeguarding defence systems.

Client Portfolio
The company boasts an impressive client base, including government entities such as DRDO, ISRO, HAL, and Bharat Electronics Limited (BEL). In the private sector, it collaborates with Tata Power, L&T, and Solar Industries. Internationally, it supplies products to global defence leaders like Israel Aerospace and Elbit Systems.

Stock Performance
The market has responded positively to this announcement. As of 9:55 AM on Tuesday, Paras Defence’s stock is trading at Rs 1,033, up 6.55 per cent intraday. Over the past year, the stock has delivered a robust return of 31 per cent, demonstrating strong investor confidence. In the recent week alone, it has provided a return of 2.86 per cent, reflecting sustained momentum.

Future Outlook
With this new license, Paras Defence is set to expand its manufacturing capabilities and further contribute to India’s defence modernization. This development underscores the company’s commitment to innovation and its growing stature in the defence and space technology sectors.

Disclaimer: The article is for informational purposes only and not investment advice.