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 "The US government has warned Indian manufacturers to ensure that their items, including defense equipment, are not exported to Russia. Such exports could support Russian missile systems and increase the risk that these companies face Western sanctions.")
Illustration: Binay Sinha
The share price of aerospace and defense company Paras Defense and Space Technologies today jumped up to 4.7 per cent to Rs 1,119 per share after the company won an order for worth of Rs 303 crore from Larsen and Toubro.
“Controp-Paras Technologies, an associate company of Paras Defense and Space Technologies, has received an order from Larsen and Toubro (L&T) worth approximately Rs. 4,00,000.305 crore (plus taxes) comprising manufacturing and the supply of 244 nos. of Sight – 25HD electro-optical system along with an extended warranty fee and an integrated logistics support package, for their CIWS program,” the company said in an exchange filing Monday.
Paras Defense and Space Technologies also mentioned that it will execute the Indian Content (IC) of the above-mentioned order. The copy of the information is dated August 14, 2024. The entire order will be fulfilled within 47 months, the company said.
The company specializes in the design, development, manufacturing, testing and commissioning of products, systems and solutions for defense and space applications.
Paras Defense and Space Technologies stock price history
Paras Defense and Space Technologies share price has surged 81.36 per cent in the last six months, compared to a 14.83 per cent rise in the BSE’s Sensex. Meanwhile, over the past year, the company’s shares have appreciated by 52.21 percent, while Sensex has soared by 28.48 percent.
Its shares are trading at a price-to-earnings price of 94.94 times, while having an earnings per share of Rs 11.25. The company has a total market capitalization of Rs 4,344.61 crore.
At 11:55 am, Paras Defense and Space Technologies share price rose 6.59 per cent to Rs 182.90 per share on the BSE. For comparison, the BSE Sensex fell 0.87 per cent to the level of 84,827.10.
According to those at Antique Stock Broking, most private defense equipment manufacturers are trading at a premium. They said companies like Paras Defense and Space Technologies are small, but poised for significant growth over the next ten years. “Valuations will not matter much if these companies succeed with products accepted and adopted by the defense forces,” analysts at the brokerage wrote in a report. However, the national brokerage does not cover the company.
First publication: September 30, 2024 | 12:09 p.m. STI