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✕NegativeTier 1

Paras Defence and Space TechnologiesNSE:PARAS

Defence · ₹10,608 Cr market cap · covered for 1 quarter since Q4 2026

Current view Q4 2026

India's near-monopoly maker of military-grade optics for defence and space. Order book keeps growing and profits rose 46%, but the share is priced extremely high and founders are trimming stake.

Latest exchange filings last 5 · 5 after Q4 2026

Exchange filings, with the company's own one-line summary, read off the same page as the figures. Screener publishes only the most recent few, so this is the last 5 — not everything filed since your note, and a quiet-looking list is not proof of a quiet quarter. A filing is marked new when it is dated after the end of the quarter your note covers. Not scored, and not a judgement — a routine repayment notice and a takeover sit in the same list.

AI concall report · Q4 2026

The full earnings-call read behind this view — what management promised, what they delivered, and the earning trigger.

✨ Read the report ↗

Growth Q4 2026

Metric This year vs lastYoY · vs Q4 2025 vs the quarter beforeQoQ, sequential · vs Q3 2026 3-year yearly average3Y CAGR · compounded 5-year yearly average5Y CAGR · compounded
Sales▲ +58.3%+61.3%+29.0%+27.2%
Operating profit▲ +53.6%+65.4%+28.8%+25.7%
EPS▲ +74.3%+88.9%+33.3%+33.0%
PAT▲ +85.7%+129.4%——

Tinted rows drive the Tier. Tier = the weaker of YoY Sales and YoY PAT growth. Here the weaker is Sales at +58.3%, which is ≥ 20% → Tier 1.

QoQ is sequential, not a trend. For most Indian companies the March quarter is seasonally the largest, so a June-quarter fall against it is a calendar effect. Only the YoY column feeds the Tier.

Multibagger potential Average60/100

Cheap, and growing fast. Profit per share grew 33% a year, while the price-tag on its earnings actually got smaller. That gap — real growth nobody has paid up for — is exactly what this score looks for.

It could double even as the price-tag on its earnings shrinks

₹1,315 → ₹2,630 needs the P/E at 102× — it is 120× today, and has ranged 48× to 176× over the last 5 years. The rest would come from earnings growing as they have.

If this keeps up for 3 more years ×1.6 +61% — profit growing 33% a year, and buyers paying 82× for it again

What you pay for its profitlog scale · 5-year range

48×5-year low 82×usual level 102×to double 120×today 153×to triple 176×5-year high

Tripling needs 153× — it has traded there — high was 176×.

The Treadmillearnings climbing while the price-tag on them has not — no re-rating yet⚠ absolute stretch⚠ priced in
Is it cheap right now?P/E 120× is 1.47× its own 5-year average of 82× — above it; forward PEG 2.72 — expensive for its growth 2/25
Has the market paid for this growth yet?ΔMultiple ×0.91 a year (×0.76 over 3 years) — slight de-rate 10/15
Is the growth real, or flattered?EPS fully backed by sales; QoQ holding 30/30
What does it earn on its own money?earns 12% on its own book — fair 5/10
Is the price trend agreeing?above 40W, below the shorter EMAs 13/20
Price vs its book value 14.6×P/B — ₹90 of book value per share
Price vs next year’s profit 90×forward P/E — what an entry pays now
Price over the last year ×1.22earnings ×1.33, price-tag ×0.91
At what price this changes
Average from ₹704 to ₹1,328 · now ₹1,315
above ₹1,341 → Good  ·  below ₹691 → Good

At ₹894 the price-tag on its earnings reaches the 82× it is being projected toward — the point where being cheap against that yardstick is used up.

Unpaid, but the growth quality is thin. Verify before acting.

How this is calculated

This is arithmetic, not a forecast — Return = ΔEPS × ΔMultiple. It says what would have to be true, not how likely it is, and "earnings keep growing at this rate for three more years" is the assumption doing the most work. This is a mid-cap at ₹10,608 cr, so the odds of a re-rate are not fighting its own size.

Growth rate used: 33.3% — the weakest of EPS / Sales / Op-profit from 3-year EPS CAGR. Latest quarter reads 60%.

How it compares with its rivals Defence · 6 of 33 listed

It earns 17% on its capital, fifth of 6, and it is the most expensive of those shown.

Company PriceP/ESizeROCE Profitlast qtr Saleslast qtr
Paras Defence ₹1,375 119.8× ₹11,081 Cr 17.2% +42.7% +37.3%
Hind.Aeronautics ₹4,862 34.8× ₹3.25 L Cr 32.0% +14.9% +14.4%
Bharat Electron ₹398 47.3× ₹2.91 L Cr 36.4% +8.7% +24.9%
Bharat Dynamics ₹1,176 82.8× ₹43,089 Cr 13.9% +547.4% +130.8%
Garden Reach Sh. ₹2,390 34.2× ₹27,377 Cr 42.8% +43.8% +38.5%
Data Pattern ₹4,533 93.9× ₹25,377 Cr 21.9% −13.5% +16.8%

Screener's own peer group, from the request already made for the industry P/E. It serves the industry's largest names by market cap, not companies of a similar size, so treat this as context rather than a like-for-like table; this company is always shown. On a phone the price, size and sales columns are dropped rather than pushed off the edge. Not part of the score.

Business quality to Jun 2026

Are the margins widening? yes — a little wider than 3 years earlier operating margin 22% → 25% over 3 years
Did the profit turn into cash? very little of it arrived as cash 48% last year, 16% over three · free cash flow −₹10 cr, positive in 3 of 5 years
Is the growth borrowed? essentially debt-free ₹27 cr — 0.04× its own equity (was 0.04×)
Is it being collected? customers are paying faster 278 days to collect, down 17 in a year · cash cycle 435 days
Who has been buying? the promoters have held steady promoters 53.2% (−0.5 in a year), 58.9% → 53.2% over 2.8 years · FIIs 8.3% (+1.4) · DIIs 3.0% (+1.1) · shareholders 2,58,613 → 3,36,442
What does it earn on its capital? earns a fair return on its capital ROCE 17.2% · ROE 12.4%

Fetched from the filings, not typed — and deliberately not part of the score. These are the questions the score cannot ask: it reads growth, price and trend, so a company can score well while its profit never becomes cash. Weigh these beside the note, not against the number.

Screener's own checklist not mine, not the score

In its favour

  • Company is almost debt free.
  • Company is expected to give good quarter
  • Company has delivered good profit growth of 40.0% CAGR over last 5 years

Against it

  • Stock is trading at 15.2 times its book value
  • Company has a low return on equity of 10.8% over last 3 years.
  • Company has high debtors of 278 days.
  • Promoter holding has decreased over last 3 years: -5.74%

Generated by screener.in from a fixed checklist — not written by me and not an input to the score. It is here as a second machine opinion to weigh against the note; where it disagrees with the view above, the note is the considered one.