Shares of Paras Defence and Space Technologies on Monday (November 25) saw a surge of up to 5 per cent during the day's early trading hours. The company's stock hit an intraday high of Rs 1,025.10 per shares.

This sudden rally in the stock prices comes after the company on November 22 announced a cutting-edge optical systems testing facility in Navi Mumbai.

During intraday trade on Monday, the shares opened at Rs 1,015.20, reached a high of Rs 1,025.70. By 12:41 pm IST, the shares of the company were trading at Rs 1,009.05, trading up by 3.28 per cent on NSE.

The company’s market capitalisation stands at Rs 4,070 crore.

Share Performance in 2024

So far in 2024, the company shares climbed by 42 per cent, outperforming the benchmark Nifty 50 index's 10 per cent rise in the same period. Despite hitting its 52-week high of Rs 1,592 on July 5, 2024, the stock has retraced from those levels but remains an investor favourite in the defence segment.

New Optical Systems Testing Facility

The key trigger for the latest rally was the inauguration of Paras Defence's state-of-the-art optical systems testing facility in Navi Mumbai. The facility was launched by Dr. S. Somanath, Chairman of ISRO, alongside the company’s Managing Director, Munjal Shah.

According to an exchange filing, "The testing facility will be the most advanced center for research and development of hyperspectral and other optical systems for Space & Defence in India. With potential application areas ranging from earth observation to automobiles to homeland security to navigation and telecommunications, hyperspectral optical systems are the future of commercial space. For perspective, the space technology market alone is pegged at over $1trillion by the end of the next decade with a CAGR of 7.5%. Complementing it, India’s Space policy aims to capture 10% of the global Space economy by 2030."

Furthemore, the company in the Q2FY25 earnings reported a 45 per cent year-on-year rise in net profit to Rs 12.70 crore. The Revenue of the company jumped 42 per cent YoY to Rs 87.09 crore, and the operating income (EBITDA) rose 46 per cent YoY to Rs 22.75 crore.

In addition to this, the EBITDA margin also improved to 26.1 per cent compared to 25.3 per cent in the same quarter last year.