Paras Defence secures submarine periscope contract from DRDO; stock gains

Paras Defence and Space Technologies Limited has bagged a crucial contract from the Instrument Research & Development Establishment (IRDE), a unit under the Ministry of Defence and DRDO. The contract, awarded on January 30, 2024, involves the Design, Optimization, Fabrication, and Qualification of Optical Periscopes for Integrated Combat Systems (ICS) used in submarines.

This contract marks a significant step towards enhancing the stealth and operational effectiveness of Indian submarines. The company’s expertise in this domain is expected to deliver high-performance periscopes that meet the stringent requirements of the Indian Navy.

The contract highlights the government’s commitment to domestic defence manufacturing. Awarded to a local company, it demonstrates the government’s efforts to boost India’s self-reliance in critical defence technologies. With an estimated value of 53 crores and a completion deadline set for FY25, this project promises to create valuable employment opportunities and contribute to the growth of India’s defence ecosystem.

Looking ahead to the upcoming 2025 budget, the Indian defence industry expects continued support from the government. Increased allocation for research and development, technology transfer initiatives, and streamlined procurement procedures are some of the key areas where the industry seeks further impetus. By prioritizing domestic capabilities and fostering innovation, the government can empower companies like Paras to contribute to a stronger, self-reliant India.

Financial Performance

In Q2FY24, the company posted a 10.09% increase in its consolidated revenue at Rs 61.31 crore compared to Rs 55.69 crore from the previous year’s corresponding quarter. The operating profit of the company stood at Rs 16.64 crore, while the PAT of the company stood at Rs 8.78 crore, from Rs 8.22 crore last year in the same quarter.

Business Overview

Paras Defence and Space Technologies (PDST) is a private sector company primarily engaged in the designing, developing, manufacturing, and testing of a variety of defence and space engineering products and solutions. The company caters to four major segments – Defence & Space Optics, Defence Electronics, Heavy Engineering and Electromagnetic Pulse Protection Solutions.

Stock Price Movement

Today, the stock opened at Rs 796.25, with a high and low of Rs 815.65 and Rs 790, respectively. The stock is currently trading at Rs 808, which increased by 2.81%. The stock has a 52-week high of Rs 848 and a 52-week low of Rs 447.10.

The stock has shown impressive growth, and investors should keep a close eye on this stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.