Paras Defence stock gains on signing pact with Israel's CONTROP

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Shares of Paras Defence and Space Technologies (Paras Defence) gained 5 percent in early deals on March 15 after the company announced that it has entered into an agreement with Israel-based CONTROP Precision Technologies.

The defence company informed the exchanges on Wednesday that has entered into a Memorandum of Understanding on March 14, 2023, with CONTROP Precision Technologies, to create new opportunities and expand both parties' business in the Indian and global defence sector.

In accordance to the pact, the parties intend to form a Joint Venture Company in India for manufacturing Electro-Optic Systems for various applications, aligning with the Government of India's Make in India initiative, Paras Defence said in the regulatory filing.

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At 10:43 am, shares of Paras Defence were trading percent 3.7 higher at Rs 498.15 on the BSE. After scaling a high of Rs 785.90 apiece in September 2022, the stock has been moving southwards with investors booking profits.

The government’s focus on Atmanirbhar Bharat has encouraged investors to look at defence stocks. A section of the market believes public defence companies could be a risky bet.

Paras Defence is a leading player in India’s Defence and space industry and one of the very few Indian companies with specialised technology competencies like Optics and EMP (Electro-Magnetic Pulse) protection.

Read more | Private defence stocks over public ones? Here’s what the market thinks

It provides products and services to five key product verticals – Defence & Space Optics (51 percent of FY22 revenues), Defence electronics & EMP solutions (26 percent), Heavy engineering (23 percent) and through subsidiaries Drones and Antidrone systems, according to Nuvama Wealth Research.