PARAS trade ideas
Stock Breakout Alert – PARAS - Watch Closely!📊 Stock Breakout Alert – PARAS - Watch Closely!
🚀 Buy Setup Identified:
🔹 Buy Above: 1,036
🔹 Stop Loss (SL): 989.00
🔹 Target 1 (T1): 1,324.12
📈 Pattern Insights:
The stock is moving within a consolidation box and appears ready for a breakout. Once it crosses the buy level, we may see a strong upward momentum towards the target zone.
✅ Action Plan:
Be patient and wait for confirmation above the buy level.
Maintain discipline with the SL to manage risk effectively.
Ride the trend for potential gains of up to 25.36%.
⚡ Remember, discipline is key. Always trade with a plan!
#StockMarketAnalysis #BreakoutStrategy #TradingSignals #InvestSmart
Stock Analysis - Paras Defense & Space Technologies (PARAS)Stock Alert: Paras Defense & Space Technologies (PARAS)
Descending Channel Breakout Potential
Buy Above: ₹1135
Sell Target: ₹1940
Gain Opportunity: ~71% if the pattern completes successfully!
💡 Technical Analysis:
The stock is poised for a bullish breakout from a prolonged descending channel.
Watch for increased volume to confirm the breakout.
📌 Sector: Aerospace & Defense
Stay updated for more actionable insights. Trade wisely!
#StockMarket #ParasDefense #BreakoutTrading #InvestSmart #StockAnalysis #investofino
@investofino
PARAS DEFENCE Getting Support @ Previous ALL Time HighNSE:PARAS
Positive factors – The outlook will be revised to Stable if the company demonstrates a material improvement in its working
capital cycle and liquidity position, along with improvement in earnings and scale of operations.
Healthy order book provides medium-term revenue visibility – The company’s fresh order inflows over the past four fiscals
remained adequate, with orders worth ~Rs. 621 crore added in the last 21 months ending December 31, 2023.
The pending order book of Rs. 526.3 crore as on December 31, 2023 (OB/OI ratio of 2.4 times of the OI in FY2023) provides medium-term
revenue visibility.
Comfortable capital structure and healthy coverage indicators – The company’s capital structure remains comfortable with
TOL/TNW of 0.3 times as on September 30, 2023, supported by equity infusion of Rs. 162.3 crore during FY2021-FY2022 and
low debt levels.
The interest coverage stood at 12.2 times in 9M FY2024 due to the limited dependence on external borrowings
to fund its working capital. Going forward, ICRA expects the coverage indicators to remain comfortable, benefitting from the
scale-up in operations, given the strong order pipeline.
Extensive experience of management team – PDSTL’s promoters have more than three decades of experience in designing,
developing and manufacturing a wide range of engineering products and solutions for the defense and space sector in the
domain of optics, heavy engineering and electronics. Its long presence in the defence and space sector has helped to establish
strong relationships with its customers as well as suppliers. It has developed a strong management and execution team
comprising several ex-employees of BEL and DRDO, among others.
High working capital intensity due to elongated receivables cycle – The business is working capital intensive with NWC/OI of
88.3% and 114.8% in FY2023 and H1 FY2024, respectively, owing to the high inventory holding period and long receivables
cycle.
The inventory levels are high because of additional stocking of critical raw materials to avoid any disruption in the
delivery schedules and high work-in-progress due to elongated manufacturing cycle.
PDSTL has been partly managing its
working capital cycle by stretching its trade payables by more than three months as it has a longstanding relationship with
most of its suppliers and availing mobilisation advance for part orders. Going forward, the company’s ability to alleviate its
working capital intensity while scaling up its revenues and improving its operating margins will be the key rating monitorable.
Moderate scale of operations – Though the company reported a robust YoY revenue growth of 21% and 10% in FY2023 and
9M FY2024, respectively, supported by healthy order book and the timely execution of orders, the scale of operations still
remains moderate. Given the Government’s thrust on ‘Make in India’ in the defence sector, PDSTL has been mainly catering
to domestic demand (~84% of OI contributed by domestic orders in FY2023). Driven by the healthy order book status, ICRA
expects the company to sustain its revenue growth in FY2024 and FY2025.
High customer concentration risk, though largely mitigated by reputed customer base and repeat orders – The company
faces client concentration risk with top three clients contributing 46% to the total order book as on December 31, 2023 and
top five clients accounting for 51% of the revenue in FY2023. The client profile mostly comprises government organisations
with repeat orders received over the years, largely mitigating the counterparty credit risk. A major part of PDSTL’s clientele
included reputed government organisations, namely Laboratory for Electro-Optics Systems (a unit of ISRO), BEL, Instruments
Research and Development Establishment (a unit of DRDO) and private companies like RRP S4E Innovation Private Limited and
Unifab Engineering Project Private Limited. The company has long standing relationships with most of its clientele. PDSTL also
exports to companies based in Israel, Singapore and USA.
PARAS pure jackpot for delivery trade Paras is created rounding bottom reversal pattern take multiple support + multiple small break out but volume and share market capitalization show some thing is big ready to turn our this 630 share price reached 700/800/900/1000 and may more upper side price
only for long term holding trade
Paras Defence and Space Technologies Ltd
Breakout Observed - Target given in chart
Fundamentals
Market Cap
₹ 3,566 Cr.
Current Price
₹ 914
High / Low
₹ 926 / 496
Stock P/E
119
Book Value
₹ 114
Dividend Yield
0.00 %
ROCE
9.80 %
ROE
7.00 %
Face Value
₹ 10.0
Price to book value
8.03
Intrinsic Value
₹ 172
PEG Ratio
12.4
Price to Sales
14.1
Debt
₹ 65.8 Cr.
Debt to equity
0.15
Int Coverage
8.44
Reserves
₹ 406 Cr.
Promoter holding
58.9 %
Pledged percentage
0.00 %
EPS last year
₹ 8.22
Net CF
₹ 14.9 Cr.
Price to Cash Flow
78.0
Free Cash Flow
₹ 22.0 Cr.
OPM last year
20.1 %
Return on assets
5.18 %
Industry PE
68.2
Sales growth
14.0 %
Paras Defence And Space Tech LONG TERM VIEWParas Defence is forming a Symmetrical Triangle On Weekly Timeframe. The Entry and Stoploss would be considered on Candle Closing Basis.
Entry - Above 800
Stoploss- Below 576
Targets - 1001,1260,1550 and 1760 (These Targets would be achieved in 2.5 years max from the date of entry).
NOTE :- This View is purely based on Technical Analysis and is for educational purposes only. Please consult your financial advisor before taking any trade.
Paras decence looks good for 1600++After a huge bull run gone a short down trend
now seems buyers again stepped in
vol average needs to pick up
1600 can be set as a short target
stop loss @nasimrafati_1400
Defence theme!
Paras Defence and Space Technologies (PDST) is an Private sector company primarily engaged in the designing, developing, manufacturing, and testing of a variety of defence and space engineering products and solutions. The company caters to four major segments - Defence & Space Optics, Defence Electronics, Heavy Engineering and Electromagnetic Pulse Protection Solutions
PARAS- AnalysisInvestment Levels
Bullish Levels - Above 765, 838 to 862 (strong level) then 943 to 957 then 1039 to 1052 then 1092 (strong level) to 1104 then 1134 to 1148
Bearish Level - Below 738 , 560 to 546 then 414 to 397 (strong level) below this more bearish.
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Defence Sector Going Offensive - Paras - Lord Parasuram's WeaponIndia's Defence Minister has said that Domestic Defence Manufacturing will be further strengthened || Defence Exports from India will be taken to an Unprecedented High :)
Amazing news to all Defence Stocks. One such pick is PARAS Defence and Space Technology
On Weekly chart - price has formed an Inverted Head and Shoulders Pattern. Both Breakout and Retest + Bounce - All Done :)
1st Target 1260 (previous ATH). When it breaks-out above 1260, it will initiate a Fresh Rounding Bottom BO for a much larger target of 2070
1st Recommendation was given around 670 levels on Aug 24, 2023. In less than 1 year, price has already reached 42%
When it reaches 1260 - it would be 87%
When it reaches 2070 - it would be 207% (3x) :)
Disclaimer:
3+ Years Teaching Experience in Stock Market - Technical Analysis, Behaviour Analysis, Advanced Patterns, Emotional Management, News based Trading...
We are NOT SEBI Registered and Our focus is NOT providing Buy/Sell Recommendations/calls. Primary Objective is to provide detailed analysis of how to review a chart, explain multi-timeframe views purely for Educational Purposes.
We strongly suggest our followers to "Learn to Ride the Tide irrespective of its Side"
*** Important *** Consult your Financial Advisors before taking any positions
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-Team Stocks-n-Trends
paras 'inverted head and shoulders' pattern, accompanied by significant trading volume.
Paras Defence and Space Technologies are primarily engaged in the designing, developing, manufacturing, and testing of a variety of defence and space engineering products and solutions. The company has five major product category offerings in defence and space optics, defence electronics, heavy engineering, electromagnetic pulse protection solutions and niche technologies.
PARAS DEFENCE Broken & Sustained Above 133 Weeks HighPositive factors – The outlook will be revised to Stable if the company demonstrates a material improvement in its working
capital cycle and liquidity position, along with improvement in earnings and scale of operations.
Healthy order book provides medium-term revenue visibility – The company’s fresh order inflows over the past four fiscals
remained adequate, with orders worth ~Rs. 621 crore added in the last 21 months ending December 31, 2023.
The pending order book of Rs. 526.3 crore as on December 31, 2023 (OB/OI ratio of 2.4 times of the OI in FY2023) provides medium-term
revenue visibility.
Comfortable capital structure and healthy coverage indicators – The company’s capital structure remains comfortable with
TOL/TNW of 0.3 times as on September 30, 2023, supported by equity infusion of Rs. 162.3 crore during FY2021-FY2022 and
low debt levels.
The interest coverage stood at 12.2 times in 9M FY2024 due to the limited dependence on external borrowings
to fund its working capital. Going forward, ICRA expects the coverage indicators to remain comfortable, benefitting from the
scale-up in operations, given the strong order pipeline.
Extensive experience of management team – PDSTL’s promoters have more than three decades of experience in designing,
developing and manufacturing a wide range of engineering products and solutions for the defence and space sector in the
domain of optics, heavy engineering and electronics. Its long presence in the defence and space sector has helped to establish
strong relationships with its customers as well as suppliers. It has developed a strong management and execution team
comprising several ex-employees of BEL and DRDO, among others.
High working capital intensity due to elongated receivables cycle – The business is working capital intensive with NWC/OI of
88.3% and 114.8% in FY2023 and H1 FY2024, respectively, owing to the high inventory holding period and long receivables
cycle.
The inventory levels are high because of additional stocking of critical raw materials to avoid any disruption in the
delivery schedules and high work-in-progress due to elongated manufacturing cycle.
PDSTL has been partly managing its
working capital cycle by stretching its trade payables by more than three months as it has a longstanding relationship with
most of its suppliers and availing mobilisation advance for part orders. Going forward, the company’s ability to alleviate its
working capital intensity while scaling up its revenues and improving its operating margins will be the key rating monitorable.
Moderate scale of operations – Though the company reported a robust YoY revenue growth of 21% and 10% in FY2023 and
9M FY2024, respectively, supported by healthy order book and the timely execution of orders, the scale of operations still
remains moderate. Given the Government’s thrust on ‘Make in India’ in the defence sector, PDSTL has been mainly catering
to domestic demand (~84% of OI contributed by domestic orders in FY2023). Driven by the healthy order book status, ICRA
expects the company to sustain its revenue growth in FY2024 and FY2025.
High customer concentration risk, though largely mitigated by reputed customer base and repeat orders – The company
faces client concentration risk with top three clients contributing 46% to the total order book as on December 31, 2023 and
top five clients accounting for 51% of the revenue in FY2023. The client profile mostly comprises government organisations
with repeat orders received over the years, largely mitigating the counterparty credit risk. A major part of PDSTL’s clientele
included reputed government organisations, namely Laboratory for Electro-Optics Systems (a unit of ISRO), BEL, Instruments
Research and Development Establishment (a unit of DRDO) and private companies like RRP S4E Innovation Private Limited and
Unifab Engineering Project Private Limited. The company has long standing relationships with most of its clientele. PDSTL also
exports to companies based in Israel, Singapore and USA.
Inverse Head and Shoulder breakout on weekly Chart - #Paras#Paras #Defence and space Tech.
#Breakout on weekly chart with highest volumes.
Part of defence theme posting highest ever sales.
Stop loss: View invalid below 590 WCB.
Kindly note that this is not a recommendation.
A candidate for potential 50% upside.