Paras Defence Shares Extend Advance After Q2 Results; Rises 14% In Seven Days

The shares of Paras Defence and Space Technologies Ltd. rose over 3% on Monday extending its gains for the seventh day. The shares have risen over 14% in the last seven trading sessions.

The company's profit rises 48.6% to Rs 20.6 crore in the second quarter of this financial year. This is in comparison to profit of Rs 13.9 crore in the previous quarter of this fiscal, according to its stock exchange notification on Thursday.

Revenue advanced by 21.4% year-on-year for the three months ended September, reaching Rs 106 crore. Operating income, or earnings before interest, taxes, depreciation, and amortization rose 30.5% year-on-year to Rs 29.7 crore. The Ebitda margin expanded to 28.1%.

Paras Defence earlier this month secured a domestic order worth about Rs 35.68 crore from the defence ministry for the supply of portable counter-drone systems (PCDS).

In addition, the company's subsidiary, Paras Anti-Drone Technologies Pvt Ltd, has also received a separate order to the tune of Rs 3.95 crore from the defence ministry for radio frequency (RF) jammers (integrated drone detector and jammer).

The scrip rose as much as 3.02% to Rs 789 apiece on Monday. It pared gains to trade 0.33% higher at Rs 768.40 apiece, as of 10:03 a.m. This compares to a 0.19% advance in the NSE Nifty 50 Index.

It has risen 55.75% in the last 12 months and 51.52% year-to-date. Total traded volume so far in the day stood at 0.82 times its 30-day average. The relative strength index was at 56.

The one analyst tracking the company maintains a 'buy' rating with a target price of Rs 766.80.