Paras Defence and Space Technologies Shares :- It is a leading player in India’s defense and aerospace sector, known for its cutting-edge innovation and indigenous manufacturing capabilities. With a diversified portfolio spanning defense optics, avionics, space equipment, and electromagnetic shielding.

📊 Investment Snapshot

Paras Defence and Space Technologies has shown a remarkable share price increase of 18.82% recently. This blog delivers a detailed analysis of Paras Defence’s stock performance, financials, SWOT, and more.


💳 Fundamental Analysis: Financial Health

MetricValueRemarks
Current Share Price₹1,799.50As of May 16, 2025
Previous Close₹1,514.50+18.82% gain
Market Cap₹5,717.27 CrRank 8 in sector
P/E Ratio96.15Above industry median (72.52x)
EPS (TTM)₹15.75Year ending Mar 2025
PB Ratio8.98Book Value: ₹158.00
Dividend Yield0.04%No dividend since 2020
Revenue (FY 2024-25)₹372.58 Cr+42.33% YoY growth
Net Profit₹63.47 CrQuarterly: ₹19.72 Cr
52-Week Range₹715.05 – ₹1,817.40Near 52-week high

📅 Cash Flow

  • Operating Cash Flow: ₹44.82 Cr (0.71x of Net Profit)
  • Investing Activities: ₹86.99 Cr (+5062.61% YoY)

📊 Technical Analysis: Stock Movement

  • ⬆️ One-day jump of 18.82%
  • ⬆️ One-month return of 72.54%
  • 🌐 Trading near 52-week high: ₹1,817.40
  • 🌄 VWAP: ₹1,701.20 (Current price trades above VWAP)

🔄 SWOT Analysis

📊 Strengths❌ Weaknesses
Strong revenue growthHigh P/E valuation
In-house R&D to manufacturingNo dividends since 2020
Defence & space tech specialisationLow cash-to-profit conversion
Skilled manpower & modern facilitiesHigh capex impacting free cash
✨ Opportunities⚠️ Threats
Rising defense budget in IndiaCompetition from big defense players
International contractsRegulatory hurdles
Drones, quantum tech, anti-drone systemsGeopolitical delays

🌐 Economic Outlook

📊 Macroeconomic Trends

  • Government’s Make in India boost
  • Geopolitical tensions are increasing defence spending

🏛️ Industry-Specific Insights

  • Niche focus: missiles, electronic warfare, aerospace
  • Long-cycle contracts with high margins
  • Entry barriers via IP and R&D

🏋️ Peer Comparison

CompanyP/EMarket CapNotes
Paras Defence96.15₹5,717.27 CrHigh growth premium
Industry Median72.52xParas is 33% overvalued
Industry Average68.23x41% premium to average

Top peers: Bharat Electronics, HAL, Data Patterns, DCX Systems, ideaForge.


☑️ Future Outlook & Price Targets

Time FrameTarget (₹)Growth Potential
2025 YE2,554+42%
20302,900 – 3,130+61-74%
20405,027+179%
20508,760 – 9,123+387-407%

🚀 Investment Verdict

📈 Why You Should Consider:

  • Fast-growing revenue
  • Government support in defence
  • Tech edge in future warfare

⚠️ Points of Caution:

  • High valuation (P/E: 96.15)
  • No dividend history
  • Moderate cash efficiency (0.71x cash to net profit)

Conclusion: Suitable for long-term, high-risk investors focused on India’s defence tech sector. Value-conscious investors may await better entry points.


📢 Disclaimer

The information provided in this blog is intended solely for educational and informational purposes. It does not constitute financial advice, stock recommendations, or an offer to buy or sell any securities. Readers are advised to conduct their own research and consult with a qualified financial advisor before making any investment decisions. Please note that stock prices, financial data, and company information mentioned in this article are subject to change on trading days. For the most recent and accurate updates, kindly refer to the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) official websites.

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