FIIs Bought 11,08,817 Shares: Aerospace & Defence Stock To Keep Under The Radar As Company Has Been Granted A License For Cannons
The stock is up by 81.5 per cent from its 52-week low of Rs 608.75 per share.
Paras Defence and Space Technologies Limited has received a significant boost to its capabilities with the acquisition of a License under the Arms Act, 1959. This license grants the Company the authority to design, develop, manufacture, assemble, and upgrade a wide range of cannons for naval gun systems, air defense gun systems, airborne cannon systems (helicopter, fighter jet), armored fighting vehicles based on cannon systems, and mounted cannon systems in various calibers, including 20X102 MM, 20X110 MM, 20X128 MM, 20X138 MM, 20X139 MM, 23X152 MM, 30X173 MM, 30X165 MM, 30X113 MM, 35X228 MM, and 40X365 MM. The license, issued by the Department for Promotion of Industry & Internal Trade, Ministry of Commerce & Industry, Government of India, is valid for a lifetime and will empower the Company to manufacture these items in-house, significantly enhancing its self-reliance and contributing to India's defense capabilities.
Earlier, Paras Defence secured two significant orders totalling Rs 598 crore, further solidifying its position in the defence sector. The first order, valued at Rs 293 crore, was awarded by Controp-Paras Technologies Private Limited for the manufacturing and supply of 244 Sight-25HD EO (Electro-Optics) systems. These advanced systems are designed to provide superior target detection, identification and tracking capabilities for naval applications. The second order, worth Rs 305 crore, was placed by Larsen & Toubro Limited, a leading Indian engineering and construction conglomerate, for the same product. Both orders are for domestic entities and are expected to be executed within the specified timelines. The Sight-25HD EO systems are a crucial component of Close-In Weapon Systems (CIWS), which are used to protect naval vessels from incoming threats such as missiles and drones. The orders highlight Paras Defence's growing market presence and its expertise in the field of electro-optics.
On Wednesday, shares of Paras Defence and Space Technologies Ltd gained 2.21 per cent to Rs 1,105 per share from its previous closing of Rs 1,081.95 per share. The stock’s 52-week high is Rs 1,592.75 and its 52-week low is Rs 608.75.
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Paras Defence and Space Technologies Ltd (PDST) is a leading private Indian company in the defence and space sector. They design, develop, manufacture, and test a wide range of products and solutions for these critical fields. PDST caters to four main areas: Defence & Space Optics, Defence Electronics, Heavy Engineering, and Electromagnetic Pulse (EMP) Protection Solutions.
This specialization allows them to serve a diverse clientele. They supply their products to both government and private entities. Some of their government clients include prestigious organizations like the Indian Defence Force (IDF), Defence Research and Development Organisation (DRDO), Bharat Electronics Limited (BEL), Indian Space Research Organisation (ISRO), Hindustan Aeronautics Limited (HAL), and various shipyards. In the private sector, they partner with companies like Godrej, Tata Power, Larsen & Toubro, Kirloskar, TCS, and Solar Industries. Their reach extends beyond India as well, with international clients including Israel Aerospace Industries, Rafale Advanced Defence Systems, and Elbit Systems.
The company has a market cap of Rs 4,362 crore with 1-year stock price CAGR of 96 per cent. According to Quarterly Results quarterly results (Q1FY25) and annual results (FY24), the company reported positive numbers. The net sales increased by 73 per cent to Rs 83.57 crore and net profit increased by 139.5 per cent to Rs 14.13 crore in Q1FY25 compared to Q1FY24. In Q1FY25, FIIs bought 11,08,817 shares and increased their stake to 2.97 per cent compared to 0.13 per cent in March 2024.
The company has an order book of Rs 600 crore. The stock is up by 81.5 per cent from its 52-week low of Rs 608.75 per share. Investors should keep an eye on this small-cap aerospace & defence stock.
Disclaimer: The article is for informational purposes only and not investment advice.