Paras Defence's revenue mix has evolved from 90:10 (Component: System) to 60:40, with a long-term objective of 40:60. The company expects the orderbook to reach Rs 10 billion in FY26 and then Rs 15 billion in the near future.
NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Nirmal Bang Report
Paras Defence and Space Technologies Ltd.'s revenue, Ebitda, and PAT growth CAGRs for FY25- FY27E are 37%, 38%, and 39%, respectively. Paras Defence is moving from a component supplier to a value-added systems maker by boosting in-house production to maintain higher profits.
The company's revenue mix has evolved from 90:10 (Component: System) to 60:40, with a long-term objective of 40:60. Paras Defence expects the orderbook to reach Rs 10 billion in FY26 and then Rs 15 billion in the near future.
The company has been delivering one periscope per quarter with secured orders, ensuring strong revenue visibility over the next two-three years.
The company is presently selling at a P/E of 54x for FY27E, which is lower than its three-year average of 60x.
We upgrade the company to "Buy" and value it at 62x FY27E EPS, resulting in a target price of Rs 1,877, representing a 15.5% upside.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
