Paras Defence and Space Technologies Limited: Comprehensive Stock Analysis Report | Scrolls
- Editor
- Oct 3
- 2 min read
by KarNivesh | 03 October, 2025
When we look at India’s fast-growing defence industry, Paras Defence and Space Technologies Limited is one of the companies that often stands out. This company has built a strong presence by designing and manufacturing advanced defence and space products right here in India. Let’s break down the key points about this company in a way that’s easy to understand.
Company at a Glance
Paras Defence isn’t a new player. It has been in the field for decades, working on specialized equipment for defence and space. What makes it unique is its wide range of products, from optics used in satellites and submarines to advanced defence engineering systems. In fact, it is the only company in Asia-Pacific that makes submarine optronic periscopes – a very high-tech product.
The company works across four main areas:
Defence & Space Optics – high-precision lenses and mirrors.
Defence Engineering – rugged computing and control systems.
Heavy Engineering – specialized mechanical systems for defence.
EMP Protection – shielding systems that protect against electromagnetic pulses.
This mix allows Paras Defence to serve the army, navy, air force, and even space research.
Financial Growth
One of the biggest highlights of Paras Defence is its strong financial growth. In the last few years, its revenue has grown steadily, reaching over ₹333 crores in FY25 – a jump of more than 40% from the previous year. Profits have almost doubled in the same time. With a healthy profit margin and rising earnings per share, the numbers clearly show positive momentum.
Quarterly results also reflect stability, with consistent revenues and profits. For investors, this indicates that the company is not just growing but doing so steadily.
Order Book Strength
Another strength is its strong order book of about ₹928 crores. This means the company already has confirmed work for the coming years. Big contracts, including submarine periscopes and anti-drone systems, give good visibility for future earnings. The management is confident about taking the order book beyond ₹1,000 crores soon.
Shareholding and Valuation
Promoters still hold a majority stake in the company, showing confidence in its future. Retail investors also form a large portion of ownership.
On the stock market side, Paras Defence trades at a premium compared to other defence companies like HAL, BEL, and Bharat Dynamics. Its price-to-earnings ratio is much higher, which means investors are willing to pay more today for its future growth potential. But this also comes with risk – if growth slows, the stock could see volatility.
Opportunities and Risks
Paras Defence benefits from India’s rising defence spending and push for self-reliance. With increasing exports and government support, the company is well-placed for growth. However, there are risks too:
Its stock price is expensive compared to peers.
Business depends heavily on government orders.
Defence projects often take time and face delays.
Final Thoughts
Paras Defence and Space Technologies is a company with strong fundamentals, a wide product range, and a promising future in India’s defence sector. For beginners, this stock offers exposure to a high-growth industry. But keep in mind – the high valuation and volatility mean it’s more suited for investors with patience and a long-term view.
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