Up 112% from 52-week low, this smallcap defence stock zooms 5%; here is why

Paras Defence and Space Technologies' stock settled locked in 5 per cent upper circuit at Rs 1,294.55 on Thursday after the government cleared a license to manufacture various industrial products.

The Department for Promotion of Industry & Internal Trade (DPII), under the Ministry of Commerce & Industry, granted an industrial license to the Mumbai-headquartered company for the manufacturing of several products.

According to the defence major, the company will be able to manufacture a range of products for the government, including infrared imaging equipment, electro-optics systems, border security surveillance systems, and radar systems, for a period of 15 years.

Here are the details of the products to be manufactured for the government:

• Infrared or Thermal Imaging Equipment: Monoculars, Binoculars, Cameras, Sights, Cooled Cameras, Uncooled Cameras, II Tube-based Sights.
• Electro-optics Systems: Cameras, day & night vision systems, security surveillance systems.
• Radar Systems: Sub-systems and platforms.
• Modules and Control Assemblies: Sub-systems for Cameras, Opto-Mech Assemblies, Opto-Electronic Assemblies.
• Border Security Surveillance Systems (BSSS): Infrared & Thermal Imaging, Cameras, Sights, Cooled Cameras, Uncooled Cameras.
• Laser Range Finder.
• Integrated Platform Advanced Computer-Based Control & Monitoring Systems.

Paras Defence Stock: Past Performance

Over the past year, the stock has skyrocketed 90.17 per cent, significantly outperforming the Nifty50 index, which has returned 27.90 per cent during the same period.