Paras Defence & Space Technologies Ltd. (IN:PARAS)
:PARAS
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Paras Defence & Space Technologies Ltd.
(PARAS)
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Rating:66Neutral
Price Target:
₹846.00
▲(22.05% Upside)
Action:Reiterated
Date:05/15/26
The score is driven primarily by solid financial strength (strong growth, healthy profitability, and a conservative balance sheet), tempered by a key risk: volatile cash generation and recent negative free cash flow. Technicals are moderately supportive but not strongly bullish, while valuation remains a headwind due to the very high P/E despite a strong dividend yield.
Positive Factors
Revenue Growth
Consistent double‑digit revenue growth demonstrates sustained demand for defence and space products and effective contract execution. In a tender-driven market this supports scale, helps qualify the company for repeat multi‑year orders, and funds R&D and capacity investments over the medium term.
Negative Factors
Cash Conversion Weakness
Negative free cash flow despite reported profits signals weak conversion of earnings to cash, likely from working‑capital swings or upfront project spend. This raises the risk of funding shortfalls for capex or inventory, increasing reliance on reserves or external financing and constraining durable investment plans.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Consistent double‑digit revenue growth demonstrates sustained demand for defence and space products and effective contract execution. In a tender-driven market this supports scale, helps qualify the company for repeat multi‑year orders, and funds R&D and capacity investments over the medium term.
Read all positive factors
Paras Defence & Space Technologies Ltd. (PARAS) vs. iShares MSCI India ETF (INDA)
Market Cap
₹61.42B
Dividend Yield0.07%
Average Volume (3M)59.70K
Price to Earnings (P/E)54.5
Beta (1Y)1.80
Revenue Growth30.69%
EPS Growth36.74%
CountryIN
Employees418
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)8.72
Shares Outstanding80,587,330
10 Day Avg. Volume48,476
30 Day Avg. Volume59,699
Financial Highlights & Ratios
PEG Ratio1.49
Price to Book (P/B)6.61
Price to Sales (P/S)10.07
P/FCF Ratio-514.85
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)13.9
Revenue Forecast (FY)₹5.86B
Paras Defence & Space Technologies Ltd. Business Overview & Revenue Model
Company Description
Paras Defence and Space Technologies Limited designs, develops, manufactures, and tests defense and space engineering products and solutions in India and internationally. The company provides rugged networking and communication, rugged display and...
How the Company Makes Money
PARAS makes money primarily by executing customer orders and contracts to supply defence and space products and by providing related engineering/manufacturing services. Key revenue streams generally include: (1) Product sales of defence electronic...
Paras Defence & Space Technologies Ltd. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
88
Very Positive
Cash Flow
54
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.93B | 4.77B | 3.65B | 2.53B | 2.22B | 1.83B |
| Gross Profit | 2.14B | 1.74B | 1.94B | 691.21M | 704.98M | 826.14M |
| EBITDA | 1.08B | 1.22B | 972.10M | 573.74M | 659.99M | 551.27M |
| Net Income | 702.70M | 881.00M | 634.70M | 320.60M | 360.70M | 270.43M |
Balance Sheet | ||||||
| Total Assets | 9.23B | 9.65B | 8.52B | 6.40B | 5.21B | 4.58B |
| Cash, Cash Equivalents and Short-Term Investments | 929.50M | 1.19B | 1.13B | 29.82M | 321.07M | 691.90M |
| Total Debt | 559.60M | 270.60M | 240.20M | 658.04M | 146.30M | 310.80M |
| Total Liabilities | 2.56B | 2.40B | 2.15B | 1.96B | 1.07B | 791.47M |
| Stockholders Equity | 6.72B | 7.25B | 6.40B | 4.45B | 4.13B | 3.78B |
Cash Flow | ||||||
| Free Cash Flow | -393.10M | -93.20M | 95.90M | -715.49M | 263.10M | 29.06M |
| Operating Cash Flow | -140.90M | 284.60M | 448.20M | -455.60M | 495.00M | 115.11M |
| Investing Cash Flow | -282.70M | -244.10M | -869.90M | -16.85M | 95.20M | -771.06M |
| Financing Cash Flow | 179.10M | 63.80M | 736.60M | 331.04M | -450.90M | 630.98M |
Paras Defence & Space Technologies Ltd. Technical Analysis
Positive
693.15
Price Trends
729.15
Positive
696.96
Positive
693.47
Positive
Market Momentum
9.46
Positive
53.71
Neutral
31.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PARAS, the sentiment is Positive. The current price of 693.15 is below the 20-day moving average (MA) of 801.26, below the 50-day MA of 729.15, and below the 200-day MA of 693.47, indicating a neutral trend. The MACD of 9.46 indicates Positive momentum. The RSI at 53.71 is Neutral, neither overbought nor oversold. The STOCH value of 31.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:PARAS.
Paras Defence & Space Technologies Ltd. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ₹214.63B | 62.62 | ― | 0.30% | 30.55% | 22.32% | |
67 Neutral | ₹3.02T | 48.33 | ― | 0.60% | 16.16% | 13.86% | |
66 Neutral | ₹61.42B | 54.46 | ― | 0.07% | 30.69% | 36.74% | |
66 Neutral | ₹47.07B | 484.02 | ― | ― | ― | ― | |
64 Neutral | ₹127.45B | 57.28 | ― | 0.09% | 60.89% | 73.08% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | ₹21.59B | -221.79 | ― | ― | -15.15% | -74.00% |
* Industrials Sector Average
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Paras Defence & Space Technologies Ltd. Corporate Events
Paras Defence wins Rs 80.28 crore DRDO order for high-precision air defence optics
Mar 9, 2026
Paras Defence Space Technologies Ltd. has secured an order worth approximately Rs. 80.28 crore, including taxes, from the Defence Research and Development Organisation under the Ministry of Defence to develop a high-precision optical system for a...
Paras Defence Signs MoU With South Korea’s Green Optics for Joint Space and Defence Optics Push
Mar 4, 2026
Paras Defence Space Technologies Ltd. has signed a Memorandum of Understanding with South Korea’s Green Optics Co. Ltd., a specialist in designing and manufacturing optics and optical systems for space, defence and other sectors. The partne...
Paras Defence to Court Global Institutions at Kotak’s “Chasing Growth 2026”
Feb 23, 2026
Paras Defence Space Technologies has announced that its management will meet analysts and institutional investors at the “Chasing Growth 2026” conference hosted by Kotak Institutional Equities on February 25, 2026, at the Grand Hyatt ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.