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

• Market Cap: ₹52.94B
• Dividend Yield: 0.07%
• Average Volume (3M): 157.01K
• Price to Earnings (P/E): 84.4
• Beta (1Y): 1.63
• Revenue Growth: 29.62%
• EPS Growth: 51.41%
• Country: IN
• Employees: 418
• Sector: Industrials
• Sector Strength: 84
• Industry: Aerospace & Defense
• EPS (TTM): 1.85
• Shares Outstanding: 80,587,330
• 10 Day Avg. Volume: 107,844
• 30 Day Avg. Volume: 157,007
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹701.00
• Price Target Upside: 4.61% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 58 Neutral
• Price Target: ₹701.00 ▲(4.61% Upside)

Paras Defence & Space Technologies Ltd. shows strong financial performance with impressive revenue growth and improved margins. However, technical analysis reveals bearish momentum, and the high P/E ratio suggests overvaluation concerns. The absence of a dividend yield also affects the valuation. Continuous monitoring of cash flow and liabilities is recommended to ensure sustainable growth.

Paras Defence & Space Technologies Ltd. Business Overview & Revenue Model

Company Description

Paras Defence & Space Technologies Ltd. (PARAS) is an Indian company operating in the defense and space sectors. It specializes in the design, development, manufacturing, and testing of a wide range of products and solutions, including defense electronics, electro-magnetic pulse protection solutions, heavy engineering, and niche technologies for space applications. The company's offerings cater to both domestic and international markets, with a focus on innovation and technological advancement.

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. exhibits strong financial performance with notable revenue growth and improved profit margins. A healthy equity base and declining leverage enhance its financial stability. However, historical fluctuations in cash flow and challenges with liabilities require careful monitoring.

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	3.65B	3.65B	2.53B	2.22B	1.83B	1.43B
Gross Profit	1.82B	1.94B	691.21M	1.17B	826.14M	653.41M
EBITDA	1.01B	972.10M	573.74M	659.99M	551.27M	448.46M
Net Income	634.70M	634.70M	320.60M	360.70M	270.43M	157.26M
Balance Sheet
Total Assets	8.52B	8.52B	6.40B	5.21B	4.58B	3.63B
Cash, Cash Equivalents and Short-Term Investments	1.11B	1.11B	29.82M	407.90M	691.90M	56.83M
Total Debt	240.20M	240.20M	658.04M	146.30M	310.80M	1.06B
Total Liabilities	2.15B	2.15B	1.96B	1.07B	791.47M	1.56B
Stockholders Equity	6.40B	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: Neutral
• Last Price: 670.10
• 50DMA: Negative
• 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 Neutral. The current price of 670.1 is below the 20-day moving average (MA) of 706.12, below the 50-day MA of 778.07, and above the 200-day MA of 604.24, indicating a neutral trend. The MACD of -41.04 indicates Positive momentum. The RSI at 41.05 is Neutral, neither overbought nor oversold. The STOCH value of 70.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	67 Neutral	₹12.99B	12.70		0.99%	-3.10%	8.21%
Sector *	66 Neutral	£2.67B	13.00	3.30%	3.25%	2.35%	-22.12%
PARAS	58 Neutral	₹52.94B	84.40		0.07%	29.62%	51.41%
RKFORGE	51 Neutral	₹105.62B	25.09		0.35%	0.55%	17.27%

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.