Paras Defence and Space Technologies Ltd's shares hit a 5 percent upper circuit at Rs 1,208.35 apiece after the company's associate company, Controp-Paras Technologies Pvt Ltd secured a Rs 305 crore-order from Larsen and Toubro (L&T).
Paras Defence shares have gained 66 percent in the past six months, outperforming the Nifty 50, which gained 10 percent during the same period. Paras Defence, however, has been giving negative weekly returns for the past six weeks.
The Rs 305 crore-order involves the manufacturing and supply of 244 units of the Sight - 25 HD Electro-Optics (EO) System. The Sight-25HD EO System is expected to enhance the capabilities of L&T's CIWS program, which is crucial for naval defence.
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Additionally, the order includes charges for an extended warranty and an Integrated Logistics Support (ILS) package, all to be used in L&T's Close-In Weapon System (CIWS) program.
Paras Defence will fulfil the Indian Content (IC) requirements of the order through a separate contract to be issued by Controp-Paras Technologies. The order is expected to be executed within a time frame of 47 months.
Paras Defence posted its June quarter earnings on August 5, which showed that the company's consolidated net profit for the quarter rose 147 percent year-on-year to Rs 14.9 crore and revenue from operations rose 73 percent YoY to Rs 83.6 crore. In the year-ago period (Q1FY24), the company's net profit and revenue stood at Rs 6 crore and 48.3 crore, respectively.
Paras Defence is a private sector company focused on the design, development, manufacturing, and testing of a wide range of defence and space engineering products and solutions. The company serves four key segments - defence & space optics, defence electronics, heavy engineering, and electromagnetic pulse protection solutions.
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