Defence Stock To Consider Fund Raise Next Week After 70% YTD Gain, Buy Or Sell?

Paras Defence and Space Technologies Ltd shares gained 6.44% in last 1-week and zoomed 79% in last 1-year. Last trading price of Paras Defence and Space Technologies shares on BSE is Rs 1285.10 per share. The company on August 22, 2024 informed via its exchange filing about its plans to consider raising of funds on August 27, 2024. The company's market capitalisation stood at Rs 5011.90 crore. Check details below:

Paras Defence and Space Technologies To Mull Raising Of Funds: As per the company's BSE filing dated August 22, 2024, "the meeting of the Board of Directors of the Company is scheduled on 27/08/2024, inter alia, to consider and approve 1. Evaluate a proposal for raising of funds, in one or more tranches, through permissible mode(s) and / or combination(s) thereof as may be considered appropriate, by way of issuance of any instruments or securities, through private placement, preferential issue, rights issue, qualified institutions placement or such other methods or combinations thereof as may be decided by the Board, subject to such approvals as may be required. 2. Introduce and implement the 'Paras Defence and Space Technologies Limited - Employee Stock Option Plan 2024."

Paras Defence and Space Technologies Shares Performance: The 52-week high price of Paras Defence and Space Technologies shares on BSE is Rs 1592.75 per share (as on 05/07/2024) and 52-week low price is Rs 608.75 per share (as on 28/03/2024), respectively. Paras Defence and Space Technologies shares 65% in last 3-months, soared 72% in last 6-months, and offered return of 106% in last 2-years.

Paras Defence and Space Technologies Bags Order From L&T: As per the August 8 BSE filing of the company, "In terms of Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations"), we are pleased to inform you that Controp-Paras Technologies Private Limited, an Associate Company of Paras Defence and Space Technologies Limited ("the Company"), has received an order from Larsen and Toubro Limited ("L&T") valued at approximately Rs. 305 Crores (plus taxes) comprising of manufacturing and supply of 244 nos. of Sight - 25HD EO (Electro-Optics) System along with Extended Warranty Charges and Integrated Logistics Support ("ILS") Package, for their CIWS Program."

Shareholding: FII/FPI have increased holdings from 0.13% to 2.97% in June 2024 quarter. Number of FII/FPI investors increased from 13 to 16 in June 2024 quarter. Institutional Investors have increased holdings from 2.88% to 3.04% in June 2024 quarter. Mutual Funds have decreased holdings from 2.75% to 0.06% in June 2024 quarter. Abu dhabi investment authority - monsoon has 2.44% stake in Paras Defence, according to Trendlyne.

Dividend History: The company has not yet announced any dividend so far.

Should You Buy Or Sell? Leading brokerage firm Nirmal Bang recommended sell call to Paras Defence share with upgraded target price of Rs 1181 per share from Rs 916 recommended earlier. "Weak quarter for the defence industry due to sluggishness in executing orders. While the management of companies in our coverage universe has guided the delivery of programs and platforms in FY25, the timelines are not well defined," said Nirmal Bang.

About: Paras Defence and Space Technologies About: Paras Defence & Space Technologies offers a wide range of Products & Solutions for Defence & Space Applications. With focus on Defence & Space Sector we have two verticals of our business, namely Optics & Optronic Systems & Defence Engineering (comprising of Defence Electronics, EMP Protection Solutions & Heavy Engineering), according to its BSE filing.

Disclaimer: The stock highlights the dividend and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.