Paras Defence & Space Technologies Ltd. (PARAS) AI Stock Analysis

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Paras Defence & Space Technologies Ltd.

(NSE:PARAS)

Select Model

Rating:69Neutral

Price Target:INR 1,417.00▲(9.53% Upside)

Action:reiterated

Date:08/19/26

The overall score reflects attractive growth, profitability, and a conservative balance sheet as key strengths, tempered by weak and volatile cash flows, stretched valuation, and overbought technicals that increase execution and downside risk.

Positive Factors

Strong Revenue GrowthStrong revenue growth indicates expanding demand for the company’s defence and space products and services. If sustained, this scale can deepen customer qualification, support manufacturing investment, and strengthen the platform for repeat orders across government and industrial programs.

Negative Factors

Uneven Cash ConversionWeak and uneven cash conversion means reported earnings are not consistently becoming available cash. Persistent working-capital swings or reinvestment needs could limit internally funded growth, increase reliance on balance-sheet resources, and reduce flexibility during execution-heavy periods.

Paras Defence & Space Technologies Ltd. (PARAS) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 104.22B
Dividend Yield: 0.08%
Average Volume (3M): 70.65K
Price to Earnings (P/E): 100.1
Beta (1Y): 1.62
Revenue Growth: 41.68%
EPS Growth: 48.10%
Country: India
Employees: 617
Sector: General
Sector Strength: 55
Industry: Aerospace & Defense

Paras Defence & Space Technologies Ltd. Business Overview & Revenue Model

Company Description

Paras Defence and Space Technologies Limited is an Indian-based specialist firm with an international presence, dedicated to the design, development, production, and rigorous testing of advanced engineering products and integrated solutions for the d...

How the Company Makes Money

PARAS makes money by executing contracts to design, manufacture, and supply defence and space-related products, sub-systems, and precision-engineered components. Revenue is primarily generated from (1) sale of manufactured products and sub-systems (e...

Paras Defence & Space Technologies Ltd. Financial Statement Overview

Summary

Strong multi-year revenue growth and improving profitability, underpinned by a very robust, low-leverage balance sheet, are partially offset by volatile and weak cash generation, including recent negative free cash flow.

Income Statement

84Very Positive

Balance Sheet

89Very Positive

Cash Flow

57Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	5.57B	4.77B	3.65B	2.53B	2.22B	1.83B
Gross Profit	2.37B	1.74B	1.94B	691.21M	704.98M	826.14M
EBITDA	1.64B	1.22B	972.10M	573.74M	659.99M	530.65M
Net Income	1.04B	881.00M	634.70M	320.60M	360.70M	270.43M
Balance Sheet
Total Assets	10.91B	9.65B	8.52B	6.40B	5.21B	4.58B
Cash, Cash Equivalents and Short-Term Investments	2.03B	1.19B	1.13B	29.82M	321.07M	691.90M
Total Debt	306.10M	270.60M	240.20M	658.04M	146.30M	310.80M
Total Liabilities	3.21B	2.40B	2.15B	1.96B	1.07B	791.47M
Stockholders Equity	7.71B	7.25B	6.40B	4.45B	4.13B	3.78B
Cash Flow
Free Cash Flow	0	-93.20M	95.90M	-715.49M	263.10M	29.06M
Operating Cash Flow	0	284.60M	448.20M	-455.60M	495.00M	115.11M
Investing Cash Flow	0	-244.10M	-869.90M	-16.85M	95.20M	-771.06M
Financing Cash Flow	0	63.80M	736.60M	331.04M	-450.90M	630.98M

Paras Defence & Space Technologies Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price1293.70

Price Trends

50DMA1317.00Negative

100DMA1312.02Negative

200DMA1035.87Positive

Market Momentum

MACD-6.62Negative

RSI52.29Neutral

STOCH67.79Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PARAS, the sentiment is Positive. The current price of 1293.70 is above the 20-day moving average (MA) of 1258.84, below the 50-day MA of 1317.00, and above the 200-day MA of 1035.87, indicating a neutral trend. The MACD of -6.62 indicates Negative momentum. The RSI at 52.29 is Neutral, neither overbought nor oversold. The STOCH value of 67.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:PARAS.

Paras Defence & Space Technologies Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:PARAS against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:DATAPATTNS	72Outperform	INR 236.31B	99.44	―	0.23%	-16.61%	3.05%
IN:BEL	69Neutral	INR 2.98T	45.81	―	0.63%	20.28%	12.34%
IN:PARAS	69Neutral	INR 105.11B	100.10	―	0.08%	41.68%	48.10%
IN:APOLLO	66Neutral	INR 163.69B	124.18	―	0.05%	77.12%	46.48%
IN:UNIMECH	61Neutral	INR 100.94B	111.88	―	―	40.00%	10.72%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:DCXINDIA	50Neutral	INR 18.28B	-154.77	―	―	-50.93%	-145.25%

* General Sector Average

Performance Comparison

IN:PARAS and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:PARAS	Paras Defence & Space Technologies Ltd.	1293.70	541.17	71.91%
IN:APOLLO	Apollo Micro Systems Ltd.	475.45	196.77	70.61%
IN:BEL	Bharat Electronics Limited	401.00	-21.13	-5.00%
IN:DATAPATTNS	Data Patterns (India) Limited	4275.00	1194.61	38.78%
IN:DCXINDIA	DCX Systems Limited	162.50	-41.20	-20.23%
IN:UNIMECH	Unimech Aerospace & Manufacturing Limited	1937.80	949.70	96.11%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 19, 2026

Paras Defence & Space Technologies Ltd. AI Stock Analysis