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Paras Defence Trading at Record High: Investors Earn 246% Returns

05 August 20224 mins read by Angel One
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Shares of Paras Defence and Space Technologies were listed on 1st October 2021. Since then, it has been hitting the upper circuit limit in every trading session. This has resulted in more than tripled returns for investors. For instance, investors like Mukul Agarwal and Sunil Singhania have earned massive returns from the IPO price of Rs. 175 a share.

Moreover, this stock witnessed a jump of around 246.3% from its IPO price. Paras Defence’s stock closed at Rs. 606.10 on 7th October 2021 with a near 5% gain.

Want to know more about this stellar stock?

Keep reading!

PDSTL Stock and Massive Returns

Shares of this defence and space solutions provider firm are on the rise, hitting the upper circuit of 5% every day. The company’s shares consist of the trade-to-trade segment. In this segment, losses and gains are limited at 5%.

Major investors of PDSTL include Mukul Mahavir Prasad Agarwal and Sunil Singhania. The latter is also the founder of Abakkus Asset Management. He owns a stake in this firm via Abakkus Emerging Opportunities Fund-1. Here are a few highlights about both these investors:

  • When the company filed its DRHP with SEBI, Abakkus had 314,286 shares. On the other hand, Agarwal held 904,286 shares. Further, on 20th September 2021, Abakkus bought another 665,805 shares in Paras Defence through an anchor book.
  • As of now, Abakkus has around 2.51% of paid-up equity in the company. Consequently, Agarwal features 2.32% of paid-up capital in PDSTL.

In addition, Nippon Life India Trustee, Ashoka India Equity Investment, and HDFC Trustee Company altogether held 5.42% shares in this company. They also bought these maximum shares via anchor book.

Further, Jaya Chandrakant Gogri held 1.95%, whereas Amit Mahajan and Shilpa Mahajan each had 1.79% shares in the company. They are the institutional investors in the company.

Experts are Optimistic On this Stock

Experts are extremely bullish on Paras Defence stock. When considering PDSTL’s Rs. 305 crores order book in the view of government’s added focus on the defence sector via Make in India and Aatmanirbhar Bharat initiatives, the company shows a strong growth trajectory.

Further, the company also features a diverse portfolio, robust order book and client relationships. All these make investors believe that Paras Defence will perform exceptionally in the coming years.

Paras Defence serves four vital sectors:

  • Defence electronics
  • Defence and space optics
  • Heavy engineering, and
  • Electromagnetic pulse protection solutions

It is also India’s only supplier of critical imaging components, like diffractive gratings for application in space and large-sized optics.

Bottom Line

The company’s long-term prospects seem favourable, owing to the increasing investment in the defence sector. Strong government support will also help the company in the near term.

That said, investors must weigh in Paras Defence’s financial metrics and spot limitations, if any. Owing to its strong financials, investors can decide to stay invested for a substantial time. As for new investors, waiting for the dip and then making positions could be helpful.


Frequently Asked Questions

  1. What is Paras Defence’s market capitalisation?

On 7th October 2021, market capitalisation of Paras Defence was Rs. 2,363.79 crores.

  1. What was the company’s total income?

As of 31st March 2021, the company’s total income stood at Rs. 144.6 crores.

  1. When was Paras Defence incorporated?

Paras Defence was incorporated on 16th June 2009.


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