Rs 565 crore order book and DIIs increase stake: This defence stock secures submarine periscope contract from DRDO worth Rs 53 crore!

Shares of this company have given about 20 per cent returns in the last six months.

Paras Defence and Space Technologies Limited has scored a critical contract worth Rs 53 crore from India's Ministry of Defence. The company will design, build, and qualify high-performance optical periscopes for Indian submarines, enhancing their stealth and operational effectiveness.

This deal signifies a major step towards self-reliance in critical defence technologies. Awarding the contract to a domestic company aligns with the government's push for Atmanirbhar Bharat (self-sufficient India). This win positions Paras Defence as a key player in meeting the Indian Navy's strategic needs, showcasing India's growing strength in indigenous defence manufacturing.

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The Indian defence industry is getting a major boost from the Indian government, with increased R&D funding, tech transfer, and smoother procurement. This push for self-reliance empowers domestic players like Paras to contribute to a more robust and independent India.

In Q2FY24, the company posted a 10.09 per cent increase in its consolidated revenue at Rs 61.31 crore compared to Rs 55.69 crore from the previous year’s corresponding quarter. The operating profit of the company stood at Rs 16.64 crore, while the PAT of the company stood at Rs 8.78 crore, from Rs 8.22 crore last year in the same quarter. DIIs have also increased their stake in the company to 2.73 per cent in December 2023 respectively.

Paras Defence and Space Technologies (PDST) is a private sector company primarily engaged in the designing, developing, manufacturing, and testing of 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. The company has an order book of Rs 565 crore.

The stock has shown robust growth, and investors should keep a close eye on this stock. 

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