Paras Defence shares zoomed 10% today on receiving order from DRDO

Shares of Paras Defence and Space Technologies Ltd shot up in Thursday's trade, rising 9.78 per cent to hit a day high of Rs 1,046.95. The stock was last seen trading 6.53 per cent up at Rs 1,015.85. At this price, it has gained 62.44 per cent in a year. The scrip logged high trading volume on BSE today as around 34,000 shares changed hands at the time of writing this story. The figure was higher than the two-week average volume of 22,000 shares. Turnover on the counter came at Rs 3.47 along with a market capitalisation (m-cap) of Rs 4,103.91 crore.

Today's sharp run in the share price came after the private defence firm bagged an order from the Center for High Energy Systems & Sciences (CHESS), DRDO, Ministry of Defence, valued at approximately Rs 142.31 crore.

"We are pleased to inform you that Paras Defence and Space Technologies Ltd (the Company), has received an order from Center for High Energy Systems & Sciences (CHESS), DRDO, Ministry of Defence, Government of India, Hyderabad valued at approximately Rs 142.31 crore (incl taxes) for Development of Laser Source Module and Integration with Beam Control System (BCS) on Mobile Platform. This is a part of the order of High-Power Laser System meant for Anti Drone and Anti Missile applications," it stated in a BSE filing.

Technically, Paras Defence's counter traded higher than the 5-day, 10-, 20-, 30-, 50-day and 100-day simple moving averages (SMAs) but lower than 150-day and 200-day SMAs. Its 14-day relative strength index (RSI) came at 49.17. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-equity (P/E) ratio of 5.21 against a price-to-book (P/B) value of 1.34. Earnings per share (EPS) stood at 199.10 with a return on equity (RoE) of 62.22. According to Trendlyne data, Paras Defence has a one-year beta of 1.4, indicating high volatility.

Paras Defence is primarily engaged in the designing, developing, manufacturing and testing of various defence and space engineering products. 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 December 2024, promoters held a 57.05 per cent stake in the company, 1.89 per cent lower than the previous quarter.