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Below is Perspective on Paras Defence and Space Technologies Ltd By Hemang Jani, Head, Equity Strategy, Broking & Distribution, Motilal Oswal Financial Services

Paras Defence and Space Technologies had a stellar debut today on bourses given its niche presence in the defence and space. It caters to optics, electronics, EMP protection solutions and heavy engineering segments in the defence/ space where GoI’s outlays is expected to increase at 16% CAGR to over USD14.5bn by 2031. Paras would be specially focusing on optics and drones which now forms ~67% of the order book (OB; INR3bn). It is looking to tap import substitution opportunities under GoI’s Atmanirbhar Bharat and ‘Make In India’ initiatives. Thus we like Paras given its complex/wide product portfolio, presence in niche defense/space, strong client relationship and high entry barriers. Given the huge impetus on the defense by the government, the stock presents good opportunity for investors to participate in this niche space. -

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