Paras Defence & Space turns hot to gain 20% in row

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Defence sector small cap gains 54% in 5-day

By S Jha

New Delhi, June 18: Shares of Paras Defence and Space were locked in another 20 per cent upper circuit on Tuesday. On Friday, the defence play had gained 20 per cent after Abu Dhabi Investment buying heavily into the company.

In a span of five days, share price of Paras Defence has zoomed by over 54 per cent. The small cap defence sector has been on a stellar run this week.

Paras Defence on Tuesday saw trading value of ₹1524 crores. There were multiple block deals in the company.

While the total market capitalisation of the Paras Defence is just about ₹5400 crores, the trading volume was whopping on Tuesday. More than one crore shares were traded on Tuesday.

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There was one block deal of ₹229 crores in Paras Defence and Space on Tuesday. The share price of Paras Defence and Space had seen the peak of ₹1198 in October, 2021.

Subsequently, the share price of Paras Defence and Space had tanked. It had touched the bottom of ₹459 in March, 2023.

Paras Defence and Space Technologies is engaged in designing, developing, manufacturing, and testing of a variety of defence and space engineering products and solutions.

Paras Defence and Space Technologies is involved in Defence & Space Optics, Defence Electronics, Heavy Engineering and Electromagnetic Pulse Protection Solutions.

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There were no significant changes in the shareholding patterns in Paras Defence and Space Technologies in the March quarters. Reports suggest that the foreign fund houses are now entering the private sector defence play.

It may also be noted that Paras Defence and Space Technologies was a highly successful IPO. It was subscribed more than 300 times, with retailers lapping up the IPO of Paras Defence and Space Technologies.

It may also be noted that the defence sector companies are high in demand on the Dalal Street. Share prices of the defence sector companies are on fast-paced rally.

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The market capitalisation of Paras Defence and Space Technologies is ₹5414 crores. The share price of the company is now commanding a PE multiple of almost 150.

Paras Defence and Space Technologies had reported healthy gains in revenue and profit after tax in the March quarter.

Disclaimer: This article makes no recommendation for buy or sell of shares of any company

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