Shares of Paras Defence and Space Technologies Ltd rose sharply in Monday's afternoon deals. The stock surged 4.74 per cent to hit a day high of Rs 1,119. Last checked, it was trading 4.55 per cent up at Rs 1,117. At this price, the scrip has gained 47.78 per cent on a year-to-date (YTD) basis.
Today's sharp upmove in the share price came after the company informed exchanges that it received an order from ContropParas Technologies Pvt Ltd to execute the Indian Content (IC) of an order valued at around Rs 293 crore.
"This is with reference to our intimation to Stock Exchanges dated August 14, 2024, wherein it was interalia mentioned that Controp-Paras Technologies Private Limited, an associate company of Paras Defence and Space Technologies Limited, had received an order from Larsen and Toubro Limited (L&T) valued at approximately Rs 305 crore (plus taxes) comprising of manufacturing and supply of 244 nos. of Sight – 25HD EO (Electro-Optics) System along with Extended Warranty Charges and Integrated Logistics Support (ILS) Package, for their CIWS Program. It was also mentioned that the Company shall be executing the Indian Content (IC) of the aforementioned order," Paras Defence stated.
"In furtherance to the above intimation and in terms of Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations), we are pleased to inform you that the Company has received an order from ContropParas Technologies Private Limited, to execute the Indian Content (IC) of the aforementioned order valued at approximately Rs 293 crore (plus taxes)," it added.
Paras Defence's stock saw high trading volume on BSE as around 16,000 shares changed hands at the time of writing this story. The figure was higher than the two-week average volume of 8,588 shares. Turnover on the counter came at Rs 1.71 crore, commanding a market capitalisation (m-cap) of Rs 4,348.51 crore.
The scrip traded higher than the 5-day, 10-, 150-day and 200-day simple moving averages (SMAs) but lower than the 20-day, 30-, 50-day and 100-day SMAs. The stock's 14-day relative strength index (RSI) came at 43.27. A level below 30 is defined as oversold while a value above 70 is considered overbought.
As per BSE, the company's stock has a price-to-equity (P/E) ratio of 94.94 against a price-to-book (P/B) value of 9.33. Earnings per share (EPS) stood at 11.25 with a return on equity of 9.83.
Paras Defence is primarily engaged in the designing, developing, manufacturing, and testing of various defence and space engineering products and solutions. It has five major product category offerings in defence and space optics, defence electronics, heavy engineering, electromagnetic pulse protection solutions and niche technologies. As of June 2024, promoters held a 58.94 per cent stake in the company.