Paras Defense shares rise by 11% after an MoU with the Korean Green Optics. Check details

Shares of Paras Defense rose as much as 11% to a daily high of Rs 750 on the BSE on Wednesday after the company announced that it had signed a Memorandum of Understanding (MoU) with Green Optics Co., Ltd., South Korea, to collaborate in optics and optical systems.Green Optics is engaged in the design and manufacture of optics and optical systems for space, defense and other applications. Under the MoU, Paras Defense and Green Optics plan to establish a framework for joint development, production and business expansion in their respective regions, with a focus on optics and optical systems for aerospace and defense.

The gains are also driven by continued strength in defense stocks as the US-Iran conflict entered its fifth day. The Nifty India Defense index was the only sector index to trade in positive territory on Wednesday.

Paras Defense shares achievements

The stock has risen more than 6% since the start of the year. Over the past year, Paras Defense has achieved an impressive return of almost 70%.

Paras Defense Q3 snapshot

For the December quarter, Paras Defense reported a 21.3% year-on-year increase in net profit to Rs 18.2 crore, compared to Rs 15 crore in the same period last year. Revenue for the quarter rose 24% to Rs 106.4 crore from Rs 85.8 crore a year ago. EBITDA rose 19% year-on-year to Rs 26.3 crore.

However, EBITDA margin decreased to 24.7% from 25.8% last year, impacted by higher total costs, mainly financing costs and personnel costs. Segment-wise, revenues from the Optics and Optronics Systems business rose to Rs 58.4 crore from Rs 44.4 crore last year. The Defense Engineering segment reported revenues of Rs 47.95 crore, compared to Rs 41.33 crore in the previous year quarter.

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