Paras Defence at new high

Paras Defence yesterday announced a set of muted earnings and yet, it went on to hit a new high today. Its consolidated net profit jumped up 63% (QoQ) at Rs.96 crore though YoY, it was a decline of 19%.

Its revenue from operations rose 24% sequentially at Rs.80 crore, YoY, it was a down 22%.

For FY24, the company’s net profit fell 11% at Rs.32 crore on a 14% rise in net revenue at Rs.253 crore.

Despite these numbers the market is gung-ho about the earnings as it feels that the FY24 increase in topline is good news plus given the robust demand expected for the defence sector for indigenously made products, marketmen are seemingly taking long term positions in the stock.

The stock opened marginally lower at Rs.873 from its close of Rs.876.50 but from there, sudden interest took off on the counter and the stock price surged to hit a new 52-week high at Rs.948.70. Currently trading at Rs.927 levels, it is among the top five gainers on the BSE.