Paras Defence zooms 7% on Rs 53 crore order from Defence Ministry

Shares of Paras Defence and Space Technologies zoomed nearly 7 percent on June 16 after the company bagged an order worth Rs 53 crore from the Ministry of Defence.

The order is for the supply of Optronic Periscopes, which need to be partially delivered in FY24, with balance delivery by FY25, according to an exchange filing.

At 2.20 pm, shares of Paras Defence and Space Technologies were trading at Rs 582.55, up 4.95 percent on the NSE. The stock also hit an intraday high of Rs 592 earlier in the session.

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The sharp move was also aided by strong volumes as 13 lakh shares changed hands on the exchanges, as against the one-month daily traded average of five lakh shares.

Earlier this month, the company also signed a joint venture agreement with CONTROP Precision Technologies to manufacture, install and provide logistics and after-sale support, etc, in the electro-optic infra-red field in keeping with Make in India initiative.

Paras Defence will hold a 30 percent stake in the venture and the remaining 70 percent will rest with by CONTROP.

The stock has jumped around 21 percent in the past three months, with its positive earnings performance in the March quarter also aiding sentiment.

The defence company posted a 4.5 percent jump in the net profit for the fourth quarter of FY24 to Rs 10.76 crore against Rs 10.30 crore in the same quarter of the previous fiscal. The company’s revenue also rose 6.3 percent to Rs 65.10 crore from Rs 61.24 crore a year ago.

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