Paras Defence
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Paras Defence and Space Technologies Limited is navigating a complex landscape characterized by strong government support for defense spending and a focus on indigenous innovation. Management's emphasis on scaling high-tech verticals, such as anti-drone systems, aligns with national security priorities and positions the company favorably for long-term growth. However, the company faces challenges, including margin pressure stemming from its revenue mix and potential execution delays in the procurement process. Vista's financial outlook reflects moderating revenue growth and ongoing margin pressures, with the stock currently trading at a premium valuation. Despite these headwinds, the expected upside of approximately 6.31% suggests cautious optimism. Over the next 12-24 months, key opportunities include expanding into high-tech defense solutions and capitalizing on increased defense budgets, while watchpoints include geopolitical risks and the need for operational efficiency to maintain competitiveness
Why We Like This Stock
- Strong government support for defense spending is driving order growth
- Management's focus on high-tech verticals aligns with national security needs, enhancing long-term growth potential
- The shift towards indigenous development is bolstering domestic manufacturing capabilities
Things To Watch Out For
- Margin pressures are expected due to the company's revenue mix and execution challenges
- Dependence on government procurement timelines may pose risks to revenue visibility
- Geopolitical instability could impact operational performance and strategic initiatives
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 254 | 365 | 477 | 493 | 561 |
| Profit Before Tax (Cr.) | 40 | 83 | 115 | 116 | 133 |
| PBT Margin | 15.7% | 22.7% | 24.1% | 23.5% | 23.7% |
| Net Profit (Cr.) | 28 | 59 | 85 | 86 | 98 |
| Earnings Per Share | 3.7 | 7.6 | 10.5 | 10.6 | 12.1 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| HDFC Securities | ▼ Reduce | 703 | 15-May-2026 |
Company Overview
Show Company Profile
Paras Defence and Space Technologies Limited designs, develops, manufactures, and tests defense and space engineering products and solutions in India and internationally. The company offers rugged networking and communication, rugged display and computing, and rugged command and control systems; mechanical products, including flow formed tubes; and avionic suites, as well as automated test equipment. It also provides diffractive gratings, Zerodur and metal mirrors, optical domes, gyro blocks, multifold and IR lenses, reflectors and coatings, deployable space antennas, CFRP structures for space applications, lens barrels, and ultra-precision manufacturing products; and rugged wired cabinets, shielded doors, honey comb air vents/filters, command and control console/systems, naval electronic time fuse, acoustic and magnetic sensing products, naval chart, other software modules, turnkey indigo simulator systems, transducer positioning systems and platforms, submarine winches, and titanium assemblies. In addition, It provides high performance embedded computing systems, substitution sub-systems, tank imaging components and sub-assemblies, turret stabilization systems, rugged tri-pods and quadri-pods, ARRV winch systems, and red dot reflex sight products; and heavy duty antenna mechanical structures, rugged COTS systems, data/video/image processing systems, rugged VME/VPX platforms, and active array radar cooling assemblies, as well as software development and system integration services. Additionally, it offers Electro-Magnetic Pulse shielded rooms and control centers, racks and cabinets, shielded doors, anechoic shielded chambers, EMP filters, shielded air vents and windows, EMP hardened products, and turnkey EMP projects. The company was formerly known as Paras Flowform Engineering Limited and changed its name to Paras Defence and Space Technologies Limited. Paras Defence and Space Technologies Limited was incorporated in 2009 and is based in Navi Mumbai, India