This small-cap defence stock jumps over 10 per cent, reaches 52-week high, breaks out from bullish pattern: complete details inside!

Paras Defence and Space Technologies is a private sector company primarily engaged in designing, developing, manufacturing, and testing a variety of defence and space engineering products and solutions. The company caters to four major segments - Defence & Space Optics, Defence Electronics, Heavy Engineering, and Electromagnetic Pulse Protection Solutions. Today the company experienced a significant surge in its share price.

Today, the company's stock rallied over 10 per cent and hit 52-week high and currently, it is trading at around Rs 861 per share, with a market capitalisation of Rs 3349 crore. Additionally, the stock has delivered a multibagger return of around 392 per cent compared to the final IPO issue price of Rs 175 per share. However, those who have purchased the stock after listing, as it is not guaranteed allotment in IPO, have not enjoyed good returns so far especially compared to other defence stock listed in the Indian market.

Today, it not only showcased a strong rally but also reached a 52-week high and broke out from a bullish pattern, specifically the bullish head and shoulders pattern. On the weekly time frame, it has formed a kind of bullish head and shoulders pattern, and if today's closing price surpasses the neckline as illustrated in the image below, it will be considered a breakout. Additionally, the volumes over the last 3-4 days have increased, attracting greater investor participation in the company's stocks.

Financial performance:

According to the Quarterly Results, in Q3 FY24, the company reported a revenue of Rs 62.79 crore, representing a growth of 4.44 per cent, and a net profit of Rs 60.12 crore. In FY23, the company reported a revenue of Rs 214 crore and a net profit of Rs 36 crore, compared to a net profit of Rs 27 crore in the previous year.

Furthermore, the meeting of the company’s board of directors is scheduled to be held on Saturday, May 25, 2024, to consider and approve, among other things, the standalone and consolidated audited financial results of the company for the quarter and year ended March 31, 2024.

Investors must keep this Small-Cap stock on their radar.

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