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Paras Defence and Space Technologies Ltd is a prominent player in India’s defense and aerospace industry, offering innovative engineering solutions tailored to meet the ever-evolving demands of national security and space exploration. This company has established itself as a leading provider of defense electronics, optics, and heavy engineering. As strategic projects unfold in these vital sectors, Paras Defence’s contributions not only bolster India’s defense capabilities but also enhance its standing in global space endeavors. As of October 11, 2024, the Paras Defence share price on the NSE stands at 1,087.20 INR, making it crucial for investors to stay informed about its growth trajectory. This article delves into the expected Paras Defence share price targets from 2024 to 2030, providing insights that can help all stakeholders make informed decisions.
Market Overview of Paras Defence and Space Technologies Ltd
- Open Price: ₹1,095.00
- High Price: ₹1,114.00
- Low Price: ₹1,075.00
- Previous Close: ₹1,084.10
- Volume: 34,681
- Value (Lacs): ₹378.65
- VWAP: ₹1,092.58
- Upper Circuit Limit: ₹1,138.30
- Lower Circuit Limit: ₹1,029.90
- P/E Ratio: 103.31
- Dividend Yield: N/A
- 52-week High: ₹1,592.70
- 52-week Low: ₹610.00
- Market Capitalization: ₹4.37K Cr
- Face Value: ₹10
Competitors in the Defense Sector
Paras Defence faces competition from several established players in the defense industry. Below are five major competitors along with their approximate market capitalizations:
- Bharat Electronics Ltd (BEL)
Market Capital: ₹110,000 Crores - Hindustan Aeronautics Ltd (HAL)
Market Capital: ₹140,000 Crores - Mazagon Dock Shipbuilders Ltd
Market Capital: ₹29,000 Crores - Bharat Dynamics Ltd (BDL)
Market Capital: ₹26,000 Crores - Data Patterns (India) Ltd
Market Capital: ₹8,000 Crores
Paras Defence Share Price Chart
Projected Share Price Targets
Paras Defence Share Price Target 2024 to 2030
| Year | Projected Share Price Target (INR) |
| 2024 | ₹1,630 |
| 2025 | ₹2,680 |
| 2026 | ₹3,160 |
| 2027 | ₹3,905 |
| 2028 | ₹4,715 |
| 2029 | ₹5,595 |
| 2030 | ₹6,259 |
Analysis of the Projected Share Price Target for 2024
The projected share price target for Paras Defence in 2024 is ₹1,630. However, various external and internal factors could have a significant impact on achieving this target. Here are three key risks that investors should consider:
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Dependence on Government Contracts:
A large portion of Paras Defence’s revenue is derived from government contracts, especially within the defense sector. Any shifts in government spending, policy changes, or delays in project approvals may adversely affect the company’s financial performance.
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Technological Competition:
The defense and aerospace sectors are rapidly advancing with new technologies. Paras Defence must continuously innovate and keep up with international advancements. Failure to do so may hinder growth, affecting market confidence and share value.
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Supply Chain Disruptions:
Being reliant on specialized materials creates vulnerability to global supply chain issues. Geopolitical tensions or economic disruptions could increase costs or delay projects, subsequently impacting profitability and stock prices.
Looking Ahead: Paras Defence Share Price Target for 2025
The expected share price target for Paras Defence in 2025 is ₹2,680. Despite promising prospects, potential challenges remain:
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Market Competition and Global Players:
The competitive landscape in the defense sector is intense, with numerous companies vying for market share. Increased competition from large international players may pressure Paras Defence’s pricing strategy and overall growth.
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Regulatory and Policy Changes:
The defense sector operates under rigorous regulations. Any adverse legislative changes may hinder operations or affect contract approvals, subsequently impacting revenue and stock performance.
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Technological Obsolescence:
Continuous investment in R&D is crucial for maintaining a competitive edge. Failing to innovate may result in technological obsolescence, affecting market positioning and investor confidence.
Long-Term Outlook: Paras Defence Share Price Target for 2030
The projected share price target for Paras Defence by 2030 is ₹6,259. To achieve this milestone, the company must navigate specific challenges:
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Evolving Global Defense Landscape:
By 2030, the defense industry will witness substantial technological changes. Keeping pace with advancements in AI, cybersecurity, and space technologies is vital to maintaining market relevance.
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Geopolitical Instability:
Tensions in various geopolitical regions can significantly impact the defense sector. Such instabilities could disrupt operations and demand, influencing financial growth.
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Sustainability and Environmental Regulations:
Increasing attention to sustainability means that defense companies like Paras must adhere to stringent environmental regulations. Adapting to new compliance requirements is crucial to avoid penalties and maintain profitability.
Shareholding Pattern of Paras Defence
- Promoters: 58.94%