Paras Defence and Space Technologies Ltd. (PDSTL)
Paras Defence and Space Technologies Ltd. (PDSTL) is an Indian private sector company engaged in designing, developing, manufacturing and testing a wide range of defence and space engineering products and solutions. It is one of the leading ‘Indigenously Designed Developed and Manufactured’ (“IDDM”) category private sector companies in India, which caters to four major segments of the Indian defence sector i.e. defence and space optics, defence electronics, electro-magnetic pulse (“EMP”) protection solution and heavy engineering. (Source F&S Report). PDSTL is also the sole Indian supplier of critical imaging components such as large size optics and diffractive gratings for space applications in India (Source F&S Report). Its goal is to become one of the leading global companies for optics for the defence and space sector.
The company has five principal categories of product offerings: defence and space optics, defence electronics, EMP protection, heavy engineering for defence and niche technologies. Its defence and space optics operations include manufacturing high precision optics for defence and space applications such as thermal imaging and space imaging systems. Its defence electronics operations include providing a wide array of high-performance computing and electronic systems for defence applications, including subsystems for border defence, missiles, tanks and naval applications.
On the financial performance front, on a consolidated basis, for the last three fiscals, the company has posted turnover/net profits of Rs. 157.17 cr. / Rs. 18.97 cr. (FY19), Rs. 149.05 cr. / Rs. 19.66 cr. (FY20) and Rs. 144.61 cr. / Rs. 15.79 cr. (FY21). Thus it has posted declining trends in its top and inconsistency in the bottom lines for these periods.
The company is in overall is a small sized company. As per financial ratios, the company is satisfactory but it needs to expand it’s operations. For short term gain, the IPO might be suitable, but the investors who are looking forward to make a long term investment needs to think twice before investing in the IPO.
