Despite market crash, Paras Defence shares gain on DRDO order win

Shares of Paras Defence and Space Technologies Ltd rose nearly a percent in an otherwise weak market today. The minor rally in the stock came after the defence firm said it won an order from Defence Research and Development Organisation (DRDO). The value of the order is Rs 26.59 crore.

Paras Defence and Space Technologies shares rose 0.68% to Rs 1331.90 today against the previous close of Rs 1322.40. Market cap of the firm stood at Rs 10,493 crore.

"We are pleased to inform you that Paras Defence and Space Technologies Limited (“PARAS”) has received an order from the Defence Research and Development Organisation (DRDO), Ministry of Defence, valued at approximately Rs 26.59 crore (including taxes), wherein the Company will be the Lead System Integrator and will also provide the complete design, analysis, fabrication, manufacturing and assembly of the Optics and Opto-Mechanical Unit for a Hyperspectral Mission," said Paras Defence.

"The complete payload shall qualify as a Space-Borne System having potential utilisation for Earth Observation. The delivery date is on or before 27 September 2027. The nature of the order is domestic," it added.

Paras Defence is engaged in designing, developing, manufacturing, and testing a wide range of defence and space engineering products and solutions. Paras Defence's business is highly dependent on projects and programmes that are undertaken by the central government and associated entities, such as defence public sector undertakings and government organisations involved in space research.

Meanwhile, Nifty50 index crashed 306 points to 22,836 and Sensex plunged 1040 points to 72,855 today. Elevated global yields, rising crude oil prices and persistent foreign fund outflows dented market sentiment.