The party isn’t over for Paras Defence shareholders as the stock breaks through the ceiling five days in a row

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The party isn’t over for Paras Defence shareholders as the stock breaks through the ceiling five days in a row
Paras Defence & Space Technologies
  • The defence equipment maker saw the best listing this year so far with 171% gains on opening ticks on October 1.
  • Since then, Paras Defence and Space Technologies’s stock has hit the upper limit of 5% gain on each trading day.
  • Apart from listing gains, the stock has surged 21% in five consecutive sessions.
The euphoria over the shares of the defence equipment maker is still ongoing as investors trust the growth prospects of the dominant player Paras Defence & Space Technologies.

Investor’s high hopes from the company are reflected in the constant spike in share price. The stock has gained 21% in the last five consecutive sessions after a stellar listing.

Paras made the best debut on the exchanges with 171% gains on listing. Those who got shares in the IPO nearly tripled their money within a few minutes of the listing to ₹40,375 from IPO bidding price of ₹14,875.

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Investors like Paras Defence more than any other sector companies because it has a diverse product portfolio. It makes stuff for defence and space optics ⁠— such as space cameras, infrared devices, diffraction gratings which help in improving image resolutions ⁠— defence electronics, electro-magnetic pulse (EMP) protection solution and heavy engineering. Besides, Paras even supplies inputs even to some of its listed peers.

Meanwhile, other defence makers failed to perform even in the last one month.

Other defence stocksLast 1 month
Bharat Electronics2%
Hindustan Aeronautics-0.9%
Bharat Dynamics-5%
BEML14%
Apollo Micro Systems6%
Analysts recommend investing in the stock for a long term perspective attributing to the company’s robust order book and its ability to benefit from the government’s ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives. It has a strong order book of ₹304 crore as of June 30, 2021.

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Half of the company’s ₹1,433 crore revenue at the end of March 2021 came from government projects. Another one third came from the private sector. The rest was from exports. The company had raised ₹170 crore from the IPO which it aims to invest in new equipment.

Paras Defence and Space Technologies is the top market debutants at least in 2021:
Companies% returns
Paras Defence & Space Technologies171%
Tatva Chintan Pharma Chem100%
G R Infraprojects105%
Clean Science and Technology100%
MTAR Technologies85%
Nazara Technologies79%
Indigo Paints75%
Nureca59%
Devyani International57%
Zomato51%

SEE ALSO: TCS earnings may be excite the street thanks to the 14 new deals in last three months

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