Paras Defence zooms 5% after opening optical systems testing facility

Shares of Paras Defence and Space Technologies gained up to 5 per cent to hit an intraday high of Rs 1025.10 a piece on Monday after the company opened an optical systems testing facility in Navi Mumbai. 

 

The testing facility will be the advanced centre for research and development of hyperspectral and other optical systems for Space & Defence in India. With potential application areas ranging from earth observation to automobiles to homeland security to navigation and telecommunications, hyperspectral optical systems are the future of commercial space, the company said in a statement on Friday. 

 

“For perspective, the space technology market alone is pegged at over $1 trillion by the end of the next decade with a CAGR of 7.5 per cent. Complementing it, India’s Space policy aims to capture 10 per cent of the global Space economy by 2030,” the company said. 

 

Paras Defence and Space Technologies is engaged in the design, development, manufacturing, testing, and commissioning of products, systems, and solutions for Defence and Space applications.

Q2FY25 results

Paras Defence and Space Technologies  reported a 45 per cent year-on-year increase in net profit for the second quarter of the financial year 2024-25 (Q2FY25) at Rs 12.70 crore compared to Rs 8.76 crore in the same quarter of the previous fiscal year.

 

Revenue for the period rose 42 per cent year-on-year, reaching Rs 87.09 crore. Operating income, or Ebitda, increased by 46 per cent year-on-year to Rs 22.75 crore, while the Ebitda margin expanded to 26.1 per cent from 25.3 per cent in the same period last year.

Paras Defence share price history

The company’s stock has outperformed the market year to date as it has risen 35 per cent, while gaining 46 per cent in the last one year. In comparison BSE Sensex has risen 11 per cent year to date and 21 per cent in a year. 

 

The company has a total market capitalisation of Rs 4,125.87 crore. Paras Defence shares are trading at a price to earnings multiple of 80.88 times and at an earning per share of Rs 12.66. 

 

At 11:11 AM; the shares of the company were trading 1.68 per cent higher at Rs 1023.95 a piece. By comparison, the BSE Sensex was up 1.68 per cent at 80,447.54 level.