Paras Defence & Space Technologies Ltd. (PARAS) AI Stock Analysis

• Market Cap: ₹56.87B
• Dividend Yield: 0.07%
• Average Volume (3M): 59.70K
• Price to Earnings (P/E): 88.9
• Beta (1Y): 1.72
• Revenue Growth: 29.62%
• EPS Growth: 51.41%
• Country: IN
• Employees: 418
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 1.85
• Shares Outstanding: 80,587,330
• 10 Day Avg. Volume: 48,476
• 30 Day Avg. Volume: 59,699
• PEG Ratio: 0.64
• Price to Book (P/B): 6.05
• Price to Sales (P/S): 10.62
• P/FCF Ratio: 403.69
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹769.00
• Price Target Upside: 8.97% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: ₹769.00 ▲(8.97% Upside)

The overall stock score of 68 reflects strong financial performance with robust revenue growth and improved profit margins. However, the high P/E ratio suggests potential overvaluation, and technical indicators show neutral momentum. The lack of earnings call data and corporate events limits additional insights.

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 computing, and rugged command and control systems; mechanical products, including flow formed tubes; and avionic suites, as well as automated test equipment. It also offers diffractive gratings, Zerodur and metal mirrors, optical domes, gyro blocks, multifold and IR lenses, reflectors and coatings, deployable space antennas, CFRP structures, lens barrels, and ultra-precision manufacturing products; rugged wired cabinets, shielded doors, honey comb filters, turnkey indigo simulator systems, submarine winches, titanium assemblies, and acoustic and magnetic sensing products, as well as naval electronic time fuze, naval chart, other software modules, and transducer positioning systems and platforms; high performance embedded computing systems, substitution sub-systems, tank imaging components and sub-assemblies, turret stabilizations, tri-pods and quadri-pods, and red dot reflex sight products; and heavy duty antenna mechanical structures, rugged cots systems, data/video/image processing systems, and active array cooling assemblies, as well as software development and system integration services. In addition, the company provides Electro-Magnetic Pulse (EMP) shielded rooms and control centers, anechoic shielded chambers, shielded doors, racks and cabinets, shielded air vents and windows, filters, EMP hardened products, and anechoic shielded chambers, as well as turnkey EMP projects. The company was formerly known as Paras Flowform Engineering Limited and changed its name to Paras Defence and Space Technologies Limited. The company was incorporated in 2009 and is headquartered in Navi Mumbai, India.

How the Company Makes Money

Paras Defence & Space Technologies Ltd. generates revenue through the sale of its diverse array of defense and space-related products and solutions. The company earns income by providing defense electronics such as infrared optics, thermal imaging components, and other advanced electronic systems to various defense organizations and contractors. Additionally, it derives revenue from its heavy engineering segment, which involves the manufacture and supply of specialized machinery and equipment for defense applications. The company's revenue model also includes earnings from its niche space technologies, which involve developing and delivering high-precision optics and other components for space missions. Strategic partnerships and collaborations with domestic and international defense agencies and space organizations contribute significantly to its revenue streams, ensuring sustained business growth and market presence.

Paras Defence & Space Technologies Ltd. Financial Statement Overview

Summary

Paras Defence & Space Technologies Ltd. has demonstrated strong revenue growth and improved profit margins. The balance sheet shows a healthy equity base and declining leverage, though challenges with liabilities remain. Cash flow improvements are noted, but historical fluctuations and capital expenditure require strategic management.

Income Statement

Paras Defence & Space Technologies Ltd. has demonstrated strong revenue growth over the years, with a notable increase from 2024 to 2025. The gross profit margin and net profit margins have also shown improvement, reflecting enhanced operational efficiency. EBIT and EBITDA margins have improved significantly, indicating robust profitability. However, the volatility in net income in previous years suggests potential risk factors that need monitoring.

Balance Sheet

The balance sheet reflects a healthy equity base with a consistent increase in stockholders' equity, contributing to a favorable equity ratio. The debt-to-equity ratio has declined, indicating better leverage management. However, the company still faces challenges with total liabilities, which require careful management to maintain financial stability.

Cash Flow

The cash flow statement reveals positive trends in free cash flow growth and operating cash flow improvement in recent years. However, historical fluctuations in free cash flow and significant capital expenditure highlight the need for strategic cash management. The operating cash flow to net income ratio has improved, indicating better cash conversion efficiency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.74B	3.65B	2.53B	2.22B	1.83B	1.43B
Gross Profit	2.00B	1.94B	691.21M	704.98M	826.14M	653.41M
EBITDA	1.01B	972.10M	573.74M	659.99M	551.27M	448.46M
Net Income	634.90M	634.70M	320.60M	360.70M	270.43M	157.26M
Balance Sheet
Total Assets	0.00	8.52B	6.40B	5.21B	4.58B	3.63B
Cash, Cash Equivalents and Short-Term Investments	1.11B	1.13B	29.82M	321.07M	691.90M	56.83M
Total Debt	0.00	240.20M	658.04M	146.30M	310.80M	1.06B
Total Liabilities	-6.37B	2.15B	1.96B	1.07B	791.47M	1.56B
Stockholders Equity	6.37B	6.40B	4.45B	4.13B	3.78B	2.07B
Cash Flow
Free Cash Flow	0.00	95.90M	-715.49M	263.10M	29.06M	-10.40M
Operating Cash Flow	0.00	448.20M	-455.60M	495.00M	115.11M	42.85M
Investing Cash Flow	0.00	-869.90M	-16.85M	95.20M	-771.06M	-62.64M
Financing Cash Flow	0.00	736.60M	331.04M	-450.90M	630.98M	53.79M

Paras Defence & Space Technologies Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 705.70
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 705.7 is below the 20-day moving average (MA) of 708.67, above the 50-day MA of 686.46, and above the 200-day MA of 642.57, indicating a neutral trend. The MACD of 2.73 indicates Positive momentum. The RSI at 50.71 is Neutral, neither overbought nor oversold. The STOCH value of 27.07 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GNA	70 Outperform	₹13.15B	12.85	―	0.97%	-3.10%	8.21%
PARAS	68 Neutral	₹56.87B	88.89	―	0.07%	29.62%	51.41%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RKFORGE	51 Neutral	₹96.85B	23.00	―	0.37%	0.55%	17.34%

Paras Defence & Space Technologies Ltd. Corporate Events

Paras Defence Announces Virtual AGM and Releases Annual Report

Paras Defence & Space Technologies Ltd. has announced its 16th Annual General Meeting (AGM) scheduled for August 21, 2025, to be conducted via video conferencing. The company has released its Annual Report for the financial year 2024-25, which is accessible electronically to shareholders, reflecting compliance with SEBI regulations and ensuring transparency and accessibility for stakeholders.