Here's why Paras Defence shares surged up to 5% today; up 81% in six mths

Aerospace and Defence firm Paras Defence and Space Technologies share price today surged up to 4.7 per cent at Rs 1,119 per share after the company bagged an order worth Rs 303 crore from L&T

Aerospace and Defence firm Paras Defence and Space Technologies share price today surged up to 4.7 per cent at Rs 1,119 per share after the company bagged an order worth Rs 303 crore from Larsen and Toubro.

“Controp-Paras Technologies, an associate Company of Paras Defence and Space Technologies received an order from Larsen and Toubro (L&T) valued at approximately Rs. 305 crore (plus taxes) comprising of manufacturing and supply of 244 nos. of Sight – 25HD electro-optics system along with extended warranty charges and integrated logistics support package, for their CIWS Program,” the company said in an exchange filing on Monday. 

Paras Defence and Space Technologies also mentioned it shall be executing the Indian Content (IC) of the aforementioned order. The copy of the intimation dated August 14, 2024. The full order will be executed within 47 months, the company said. 

The company specialises in the design, development, manufacturing, testing, and commissioning of products, systems, and solutions for defence and space applications.

Paras Defence and Space Technologies share price history

Paras Defence and Space Technologies share price has surged 81.36 per cent in the last six months against BSE’s Sensex rise of 14.83 per cent. Meanwhile, in the last one year the company’s shares have appreciated by 52.21 per cent, while Sensex climbed 28.48 per cent.

Its shares are trading at price to earnings valuation of 94.94 times, while having an earning per share of Rs 11.25. The company has a total market capitalization of Rs 4,344.61 crore. 

At 11:55 AM,  Paras Defence and Space Technologies stock price soared 6.59 per cent to Rs 182.90 per share on the BSE. By comparison, the BSE’s Sensex dropped by 0.87 per cent at 84,827.10 level. 

According to those at Antique Stock Broking, most private defence equipment manufacturers trade at a meaningful premium. They said firms like Paras Defence and Space Technologies are small, but are preparing for significant growth over the next ten years. “Valuations will not be of much relevance if such companies succeed with products that are accepted and adopted by the defence forces,” analysts at the brokerage wrote in a report. The domestic brokerage, however, does not have coverage on the company.