Paras Defence Share Price Target 2022, 2023, 2024, 2025, and 2030

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Paras Defence share price target 2022, 2023, 2024, 2025, and 2030: In this article, you will learn about Paras Defence share price target 2022, 2023, 2024, 2025, and 2030, along with the fundamentals and financials of the company.

For every investor, it is important to know about the company in which they are investing, to get the confidence to hold the stock for the long term. To make it clear to you, in this article we have mentioned Paras Defence share price target 2022, 2023, 2024, 2025, and 2030, along with the fundamentals of the company.

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Paras Defence Share Price Target 2022, 2023, 2024, 2025, and 2030: Company Profile

Paras offers a wide range of Products & Solutions for Defence & Space Applications. With a focus on Defence & Space Sector, Paras Defence has five verticals of its business, namely Defence & Space Optics, Defence Electronics, Heavy Engineering, Electromagnetic Pulse Protection Solutions and Niche Technologies.

With over 40+ years of sustained business growth in the area of Defence & Space Engineering, Paras Defence is involved in Technologies for rockets & Missiles, Space & Space Research, Naval Systems, Land & Armoured Vehicles, and Electronic Warfare & Surveillance, ElectroMagnetic Shielding to name a few.

Paras has a state-of-the-art manufacturing setup with a 400+ workforce and has capabilities to offer a Turnkey Solution from Design to Commissioning of Small to Large Systems. Paras Defence focuses on Technology Development & R&D distinguishes us as a True IDDM company in the Indian Defence Industry. Paras Defence has a vibrant team working on developing future technologies and providing cutting edge solutions for its customers.

Quality Products, Delivered at the Right Time and at the most Competitive Price is its business strategy. This has made Paras Defence as one of the most dependable partners of its Customers. Strong Fundamentals, Impeccable Business Ethics & Customer-Centric Approach are the pillars of its business as Paras Defence aims to become the most significant Indian Company in the Defence & Space Sector.

Share Holding Pattern

Paras Defence Share Price Target

Net Sales

Paras Defence Share Price Target

Net Profit

Paras Defence Share Price Target

Paras Defence Share Price Target 2022

Indian defence spending has been steadily increasing since 2000 and is estimated to be $61.23 billion in 2020, as set out below, growing at a CAGR of 11.26%. The key drivers for budget expansions are the geopolitical threats faced by China and Pakistan, the need to reduce obsolescence levels of the Armed Forces; and the acquisition of new war fighting capabilities and force multipliers. Both capital and revenue expenditures of the Indian Armed Forces have increased over the years.

Almost 59% of the total defence budget allocation is towards meeting salary and pension requirements of the 1.3 million-strong armed forces and the same has been excluded in the details set out above. Of the Ministry of Defence’s (MoD) total allocation for 2020, revenue expenditure amounts to 66% and capital expenditure amounts to 34%. Whilst the Armed Forces-wise split of the budget, as indicated below, shows the Indian Army as the major recipient of spending, the Army’s capital acquisition is the most stymied of the three Forces and thus has the lowest capital share.

The Army’s capital acquisition budgets declined from a high of 26% in 2007 to 18% in 2020 both because of increases in pensions and allowances and because of extensive delays, ambiguities and roadblocks in future procurement programmes such as the Future Infantry Combat Vehicle (FICV) and Future Ready Combat Vehicle (FRCV). The Air Force accounts for $9,490 million, while the Navy has $6,500 million allocated towards capital procurement.

India has embarked on a comprehensive military modernization plan, revolving around equipment upgrades such as the purchase of new rifles, carbines, combat aircraft, rotary-wing aircraft, artillery, ammunition and force multipliers involving network-centric warfare, electronic warfare suites, and air defence systems, among others. 14 new contracts for new procurements involving T-90 tanks (worth $2.68 billion), antisubmarine warfare shallow watercraft (worth $1.69 billion) and Akash Missile Systems (worth $717.53 million) were signed in the first 10 months of 2019-20. A total of $12 billion Buy and Make (Indian) capital procurement proposals (32 in total) have been cleared. By considering all the factors, Paras Defence share price target for 2022 is Rs 710.

Paras Defence share price target 2022
Rs 710

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Paras Defence Share Price Target 2023

India’s defence exports and imports used to be at two ends of a continuum with a massive trade deficit skewed against Indian indigenous production. The Stockholm International Peace Research Institute (SIPRI) Arms Transfer Database indicates that India remained the largest importer of defence equipment in the 2012-16 timeframe with its share in global arms imports increasing from 9.7% in 2007–11 to 12.8% in 2012-16. Compared to the above, India’s arms exports contributed to only a small percentage of the global arms trade during this time. However, there has been a substantial increase in Indian defence exports in the 2016-19 timeframe.

The figures from the Department of Defence Production indicate that in the last four years India’s defence exports have increased by over 5.5 times compared to the 2016-17 baseline and that the target for 2020-21 is $2 billion. The increase in exports can be attributed to modifications to the export policy made in order to make it easier for companies to get export licenses.

Indian companies are currently authorized to sell equipment to 42 countries. Indian Tier 2 and Tier 3 defence companies will have opportunities to embed themselves into global defence supply chains moving forward. Further, with increased indigenization, private sector competition and innovation will increase, eventually leading to an expansion of segments that can be leveraged for export. Paras Defence share price target for 2023 is Rs 780.

Paras Defence share price target 2023
Rs 780

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Paras Defence Share Price Target 2024

Atmanirbhar Bharat Abhiyan, which translates to “self-reliant India”, is the Indian government’s drive to stimulate local production and manufacturing in the wake of COVID-19’s anticipated economic impacts. Reforms and easing of policy were announced for different sectors including the defence industry.

The main underlying principles of the procurement policy are making the acquisition procedure as transparent as possible and promoting the indigenous industry in line with the Atmanirbhar Bharat initiative. While the Defence Acquisition Procedure aims at transparency by the appointment of committees which take a joint decision on acquisition, it aims to galvanise domestic manufacturing by giving preference to products with Indigenous Content, and better implementation of defence offsets. The Defence Acquisition Procedure has also introduced several new provisions in addition to existing ones, which aim to boost the indigenous industry, such as:

Capital Acquisition Categories
There are 6 main capital acquisition categories in the Defence Acquisition Procedure which are differentiated on the basis of whether the equipment is being manufactured by a domestic player or a foreign OEM and further on the IC. There is also an additional category of Strategic Partnership Model (‘SPM’). Companies that have indigenous design and development capability are given preference over others in the acquisition policy. The categories are Buy (Indian IDDM), Buy (Indian), Buy and Make (Indian), Buy and Make, Buy (Global-Manufacture in India), Buy (Global), and Strategic Partnership Model.

Defence Offsets
The aim of defence offsets is to offset the foreign import bill by ensuring that the vendor directs 30% (or as applicable under the particular category) of the total contract cost to either source defence equipment and components from India or facilitate transfer technology. By considering all these opportunities, Paras Defence share price target for 2024 is Rs 850.

Paras Defence share price target for 2024
Rs 850

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Paras Defence Share Price Target 2025

As modernization of the Indian Defence sector becomes more technology oriented, four major segments will become key contributors to most emerging programs, namely, Defence Electronics, Defence Optics, EMP Protection and Heavy Engineering. The Indian defence establishment will increasingly look at sourcing these segments from local suppliers because of the Atmanirbhar Bharat initiative, and increasing levels of well-established R&D, quality standards and manufacturing capabilities in these segments. Whilst currently, the outlays to these segments made to Indian companies are in the order of approximately $3.21 billion, by 2029 the spending will increase to over approximately $13.4 billion because of extensive fleet recapitalisation, C4ISR orientation and greater indigenous supply preferences.

The cumulative market in the time frame 2020-2029 is expected to be approximately $79.3 billion. The Defence Electronics segment will see extensive indigenization over the next decade. Defence Electronics make up 25- 35% of the cost of most platforms used by the Indian Armed Forces. Accordingly, platform recapitalisation programmes across all three forces such as new combat aircraft acquisition, submarine building and T-72 replacement will be key contributors to future market valuation of this product segment. The market for Defence Electronics will grow from approximately $1.94 billion in 2020 to approximately $7.03 billion in 2029.

The cumulative market opportunity for this segment will be in the order of approximately $39 billion, making this segment the largest among the four. The Defence Optics Segment is forecasted to grow from approximately $92.42 million in 2020 to approximately $415.22 million in 2029. Airborne Combat and ISR capability expansion will be a major driver of this segment, along with land forces modernization. The Naval contribution to this segment will be limited in comparison to the Air Forces and Land Forces.

EMP Protection is being more closely integrated into platform design and future platform procurements will therefore include much greater investments in this segment. Apart from being part of the aforementioned Defence Electronics related opportunities, standalone opportunities will arise because India is expected to enhance protection levels of its forward Command and Control infrastructure and bases from potential Chinese high-altitude electromagnetic pulse weapon attacks.

Heavy Engineering related requirements in defence are becoming increasingly specialized because emerging military technologies such as hypersonic weapons have complex material engineering requisites. As future platforms will have more sensor and electronics densities, using “meta-materials” and cooling systems to reduce platforms signatures will become a major priority for defence forces.

Engineering expertise and capability to work with metals such as Titanium that has greater strength to weight ratio will be sought after in the Indian market, especially as the Navy increases its fleet of submarines. Thus, the Heavy Engineering segment with a market valuation of approximately $696.49 million in 2020 will grow to approximately $2.21 billion by 2029. By considering these factors, Paras Defence share price target for 2025 is Rs 960.

Paras Defence share price target for 2025
Rs 960

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Paras Defence Share Price Target 2030

Around 23,329 satellites are expected to be launched between 2020 and 2030, while 2,046 small satellites have been launched between 2015 and 2020 (as of 30 September 2020). The availability of affordable launch capabilities has enabled new small-satellite operators without specific satellite engineering experience to enter the space industry, especially in downstream value-added services. However, access to affordable and relevant launch services remains a primary concern, since the launch services market currently lacks the capacity and capability to meet the rising demand. Additionally, government agencies are pushing their space market agenda forward globally, and many of them have taken to enhancing their respective space economies, enabling their respective market participants to fit into the global space industry value chain.

The India Space Program was initiated with the launch of the first satellite Aryabhatta in 1975. The Indian space industry has been driven and enabled by the national space agency, ISRO. Some of the key milestones for ISRO have been set out along with Chandrayaan and Mangalyaan missions being the key missions highlighting the technical capabilities of ISRO. These missions have had a trickledow effect in terms of technological capability building for its suppliers i.e. component and system manufacturers. Suppliers like the Paras Defence and Space Technologies have established a strong foothold in the domestic space industry by being the supplier of Optics & OptoMechanical Assemblies for these space exploration missions.

Further, the DoS is creating opportunities for the Indian space program to better engage with existing and new private participants while evolving from a supply-based model to a demand-based model. To support this objective, it has created a new commercial business unit called NewSpace India Limited NSIL. NSIL is expected to improve and expand the ongoing commercialization effort to integrate the private participants with the Indian space program. This is expected to create more new opportunities for private participants including for the Paras Defence and Space Technologies.

The recently announced Atmanirbhar Bharat initiative will have a distinct focus on domestic participants. This is in addition to H 24.53 million for machinery and equipment and H 33.36 million for contractual services for the same time period. Ongoing efforts will result in spending on space imaging capabilities, which will create opportunities for domestic participants specializing in space imaging systems and components. The ‘Atmanirbhar Bharat’ Agenda will drive procurement efforts to prioritize Indian participants over international ones.

The latter will remain eligible for opportunities if they have partnership deals with the former. ISRO’s efforts to enable domestic private participants to outsource space systems manufacturing, a strong focus on EO missions, and the Atmanirbhar Bharat initiative collectively contribute to a strong environment of growth opportunities for Indian participants, especially those in partnerships with international participants. With private operators entering the market, the demand for manufacturing across the satellite, subsystem, and component levels will grow, as the customer base will have participants other than ISRO investing in such capabilities.

This will further drive the growth of the Indian space ecosystem, creating opportunities for international space market participants and investment groups, as technological and financial support from the global space value chain participants will be in demand. By considering all the above-mentioned factors, Paras Defence share price target for 2030 is Rs 2400.

Paras Defence share price target 2030
Rs 2400

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Paras Defence Share Price Target 2022, 2023, 2024, 2025, and 2030

YearShare Price Target
Paras Defence share price target 2022Rs 710
Paras Defence share price target 2023Rs 780
Paras Defence share price target 2024Rs 850
Paras Defence share price target 2025Rs 960
Paras Defence share price target 2030Rs 2,400

Frequently Asked Questions

What is the target of Paras Defence?

Paras Defence share price target for 2022 is Rs 710, Paras Defence share price target for 2023 is Rs 780, Paras Defence share price target for 2024 is Rs 850, Paras Defence share price target for 2025 is Rs 960, and Paras Defence share price target for 2030 is Rs 2,400.

Is Paras Defence good for long term?

Yes, Paras defence is good for the long term. The company is very strong in terms of financials and fundamentals.

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