Why Paras Defence & Space Technologies hit 10% upper circuit in trade?

Paras Defence and Space Technologies shares clocked a 10 per cent upper band in Tuesday's trade on BSE at Rs 1,066.5 per share. The rally in the stock came after the company was granted license to manufacture MK-46 and MK-48 belt-fed light Machine Gun (LMG).

 

At close, the stock was up 10 per cent at Rs 1,066.5 per share. In comparison, the BSE Sensex was up 0.30 per cent at 78,199.11. The market capitalisation of the company stood at Rs 4,297.32 crore. The 52-week high of the stock stood at Rs 1,592.75 per share and the 52-week low of the stock stood at Rs 608.75 per share. 

 

 

"We are pleased to inform you that Paras Defence and Space Technologies Limited has been granted a license under the Arms Act, 1959. This license authorises the company to manufacture MK-46 and MK-48 Belt-fed Light Machine Gun (LMG) – Modernised Enhanced and Redefined LMG with a proposed annual capacity of 6000 nos each," the filing read.

 

Department for Promotion of Industry & Internal Trade, Ministry of Commerce & Industry, Government of India granted license to the company for a lifetime. 

 

Recently, the company started an optical systems testing facility in Navi Mumbai. The testing facility is an advanced centre for research and development of hyperspectral and other optical systems for Space and 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. 

 

In Q2, Paras Defence and Space Technologies reported a 45 per cent year-on-year (Y-o-Y) increase in net profit for the second quarter of the financial year 2024-25 (Q2FY25) at Rs 12.7 crore compared to Rs 8.76 crore in the same quarter of the previous fiscal year. Revenue for the period rose 42 per cent Y-o-Y, reaching Rs 87.09 crore. 

 

Paras Defence and Space Technologies Ltd. is an Indian company specialising in the design, development, and manufacturing of defense and aerospace technology products. The company is known for providing cutting-edge solutions to both the defense and space sectors, serving various government and private sector clients. It offers a wide range of products including defense electronics, space components, and equipment related to surveillance, communication, and navigation.

 

In the past one year, Paras Defence shares have gained 24.4 per cent against Sensex's rise of 8.2 per cent.