Paras Defence and Space Technologies Ltd.’s stock surged 10% on Tuesday, reaching its peak price range of Rs 1,066.50. The company’s announcement that it had been granted a vital license by the Indian government to produce sophisticated light machine guns was the catalyst for the spike.
“We are happy to notify you that M/s. Paras Defence and Space Technologies Ltd has been granted a license under the Arms Act, 1959,” stated Paras Defence in a filing with the Bombay Stock Exchange (BSE). With a planned yearly production capacity of 6,000 pieces each, this license permits the company to produce the Modernized Enhanced and Redefined Belt-fed Light Machine Gun (LMG) MK-46 and MK-48.
Manufacturing License
The Ministry of Commerce & Industry and the Department for Promotion of Industry & Internal Trade have recently granted Paras Defense a license to manufacture Belt-fed Light Machine Guns (LMGs) MK-46 and MK-48. The company intends to produce 6,000 of these upgraded LMGs a year, and they are designed with improved capabilities. It is anticipated that the license will greatly enhance the company’s manufacturing capacity and is good for life.
Stock Performance
Paras Defence shares saw a dramatic recovery as a result of the announcement, rising over 10% to their upper price range after opening marginally lower at ₹960.65. The stock was trading 6.8% higher at ₹1,035.30 at 10:05 AM. The stock is still 49% below its 52-week high of ₹1,592.75, even with this surge. However, since its 52-week low of ₹608.75, it has increased by 75%. The stock has performed inconsistently in recent months, falling 33% in the last six months and 8% in the last month. It has, however, increased by 32% during the past 12 months.
About the Company
Paras Defence and Space Technologies Limited was established on June 16, 2009, under the name Paras Flow Form Engineering Limited. On July 24, 2009, the company obtained the Certificate for Commencement of Business. Later, on September 25, 2009, the RoC issued a new name for the company, which was Paras Flowform Engineering Limited. In addition, the company’s name was changed to Paras Defence and Space Technologies Limited after it was converted to a public limited company.
The company works on the design, development, production, testing, and commissioning of systems and products for space and defense applications.
