Latest news with #ParasDefence&SpaceTechnologies
Business Upturn
12 hours ago
- Business
- Business Upturn
Defence Stocks Surge: Avantel up 2.74%, Paras Defence up 2.64%, Premier Explosives jumps 2.35%
By Aditya Bhagchandani Published on June 23, 2025, 09:30 IST Indian defence stocks rallied on June 23 morning after the United States formally entered the conflict against Iran by joining Israel in airstrikes on Iranian nuclear facilities. The move comes amid heightened fears of a broader Middle East conflict, with Iran vowing retaliation and threats of closure of the Strait of Hormuz. Shares of Avantel surged 2.74% to ₹159.17, Paras Defence & Space Technologies rose 2.64% to ₹1,697.90, while Premier Explosives climbed 2.35% to ₹606.75 on the NSE. Other gainers included Data Patterns (up 1.63%), Bharat Electronics (up 1.71%), and C2C Advanced Systems (up 2%). The uptick follows US President Donald Trump's confirmation that US forces, in coordination with Israeli operations, had 'completely and fully obliterated' key Iranian nuclear sites in Fordo, Isfahan, and Natanz. Trump warned Tehran of further consequences should Iran retaliate. Iran's Supreme Leader Ayatollah Khamenei's aide has urged a counter-attack on US forces and demanded closure of the Strait of Hormuz to Western powers. The Atomic Energy Organisation of Iran confirmed the strikes but stated their nuclear operations will continue. Market analysts believe the situation could lead to increased defence spending and demand for Indian defence exports amid global supply uncertainty. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Business Standard
6 days ago
- Business
- Business Standard
ICRA revises long-term rating outlook of Paras Defence to 'positive'
Paras Defence & Space Technologies said that the credit rating agency ICRA has revised its outlook on the long-term rating of the company to 'positive' from 'stable'. The agency has reaffirmed the companys long-term and short-term rating at '[ICRA] A- and '[ICRA] A2+, respectively. ICRA stated that the revision in outlook to 'positive on the long-term rating of Paras Defence & Space Technologies (PDSTL) takes into account the expectation that the company will be able to sustain the increase in its operating margins to 26.7% in FY2025 from 21.2% in FY2024, driven by the rising share of the margin-accretive 'optics and optronics segment, and an improvement in working capital intensity on the back of reduction in inventory days due to quicker delivery of periscopes and faster realisation of payments. This, coupled with the robust topline growth of 44% to Rs. 364.7 crore and a healthy order book position of Rs 928 crore as on 31 March 2025 (translating to a book-bill ratio of 2.5 times of FY2025 OI) resulted in a substantial improvement in its financial profile. The ratings continue to favourably factor in the extensive experience of the management team with more than three decades of experience in designing, developing and manufacturing a wide range of engineering products and solutions for the defence and space sector in optics, heavy engineering and electronics. PDSTLs long presence in the sector has allowed it to establish strong relationships with its customers. The ratings, however, are constrained by the working capital-intensive nature of operations, which despite posting an improvement in FY2025, continues to remain high on an absolute basis on account of long receivables cycle and high inventory holding period. This is attributable to the need to maintain adequate stocking of raw materials to ensure uninterrupted production and avoid any disruptions in delivery schedules. The ratings are also constrained by the moderate scale of operations, coupled with client concentration risk with the top 5 clients accounting for nearly 76% of the pending order book as on 31 March 2025 and approximately 69% of revenues in FY2025. Going forward, PDSTLs ability to prudently manage its working capital intensity, while scaling up its revenues, with sustenance of its healthy operating margins and liquidity, will be a key rating monitorable. Paras Defence & Space Technologies designs, develops and manufactures a wide range of engineering products and solutions for the defence and space sector in the domain of optics, heavy engineering and electronics. The scrip shed 0.23% to currently trade at Rs 1629 on the BSE.
