Paras Defence hits 5% upper circuit as it opens new optical systems facility in Maharashtra

So far this year, the stock of this defence player has surged 42 percent

Shares of Paras Defence and Space Technologies hit 5 percent upper circuit at Rs 1,025 apiece on November 25 after it opened its advanced and state-of-the art optical systems testing facility in Navi Mumbai, Maharashtra. It is set to be the most advanced center for research and development of hyperspectral and other optical systems for space and defence in India.

So far this year, the stock of this defence player has surged 42 percent, as compared to 10 percent rise in the benchmark Nifty 50 index. Earlier, it had hit 52-week high of Rs 1,592 per share on July 5, 2024.

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Paras Defence’s focus on advanced optical and optronics systems is in-line with Government’s “Vision 2047” that envisages the country to be in the forefront of global space economy and space exploration for humankind, the management said.

"With their advanced manufacturing and testing capabilities, Paras continues to deliver critical optical systems essential to ISRO's missions. Our partnership reflects shared innovation and a commitment to self-reliance in high-tech manufacturing. This facility not only strengthens our space exploration efforts but also broadens the applications of optical systems in other industries. Such initiatives position Paras as a global leader in optical-electronic systems, driving India’s progress in science and technology," said S Somanath, Distinguished Scientist and Secretary, Department of Space, Chairman, Space Commission and Chairman, ISRO.

Recently, credit ratings agency ICRA had reaffirmed Paras Defence's long-term and short-term facilities and changed the outlook to "stable" from "negative."

In the recently concluded September quarter, Paras Defence net profit rose 45 percent YoY, beating Street estimates. Revenue also increased by 42 percent YoY in Q2FY25, while EBITDA surged by 46 percent YoY. Meanwhile, EBITDA margin also expanded to 26.1 percent versus 25.3 percent in the year-ago period.

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