2:1 Stock Split Upcoming: Multibagger Defence Company Announces Strategic Joint Venture with Heven, a Leading Global Drone Innovator
The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 681.95 per share.
Paras Defence and Space Technologies Ltd. has announced a strategic joint venture with HevenDrones Israel, a subsidiary of US-based Heven, a global innovator in autonomous, hydrogen-powered drones. This collaboration aims to establish a new entity in India focused on designing, manufacturing, and supplying next-generation drone systems tailored for India's defence and homeland security needs. The joint venture has long-term ambitions to expand into global markets, leveraging the combined strengths of both companies.
This partnership uniquely blends Paras Defence's established engineering and manufacturing capabilities with HevenDrones' advanced and proprietary drone platforms. Notably, the JV will be the exclusive entity bringing HevenDrones' revolutionary hydrogen-powered drone technology to India for the first time. This positions the venture as a frontrunner in the Indian market, offering ready-to-deploy, proven hydrogen-powered drones that boast enhanced flight endurance and modular payload capabilities, all designed, manufactured, and deployed within India. Key application areas will include logistics support for remote regions, tactical surveillance, defence supply chains, and high-altitude missions.
Both companies will contribute significantly to the joint venture. HevenDrones will transfer crucial intellectual property, production manuals, and working prototypes, while Paras Defence will oversee critical aspects such as manufacturing, sales, local compliance, and operational delivery. This transfer also includes training programs, and the JV's governance will be managed by a board comprising directors from each company, who will jointly appoint the CEO, CFO, and COO. The immediate focus of the joint venture will be serving India's defence and homeland security sectors, with plans to explore export opportunities once a strong domestic foundation is secured.
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About the Company
Paras Defence and Space Technologies Ltd (PDST) is a leading private Indian company in the defence and space sector. They design, develop, manufacture, and test a wide range of products and solutions for these critical fields. PDST caters to four main areas: Defence & Space Optics, Defence Electronics, Heavy Engineering, and Electromagnetic Pulse (EMP) Protection Solutions. This specialisation allows them to serve a diverse clientele. They supply their products to both government and private entities.
Some of their government clients include prestigious organisations like the Indian Defence Force (IDF), Defence Research and Development Organisation (DRDO), Bharat Electronics Limited (BEL), Indian Space Research Organisation (ISRO), Hindustan Aeronautics Limited (HAL), and various shipyards. In the private sector, they partner with companies like Godrej, Tata Power, Larsen & Toubro, Kirloskar, TCS, and Solar Industries. Their reach extends beyond India as well, with international clients including Israel Aerospace Industries, Rafale Advanced Defence Systems, and Elbit Systems.
Paras Defence & Space Technologies Limited has announced a sub-division or split of its existing equity shares in the ratio of 1:2, meaning every one share with a face value of Rs 10 will be divided into two shares with a face value of Rs 5 each, pending shareholder approval which will be obtained through a postal ballot electronic voting process with the record date to be decided subsequently. Furthermore, the company's board has recommended a final dividend of Rs 0.50 per equity share of Rs 5 for the financial year ending March 31, 2025, which will be paid post the completion of the aforementioned stock split.
According to Quarterly Results, the net sales increased by 36 per cent to Rs 108.23 crore and net profit increased by 117 per cent to Rs 20.76 crore in Q4FY25 compared to Q4FY24. In its annual results, the net sales increased by 44 per cent to Rs 364.66 crore and net profit increased by 104 per cent to Rs 61.46 crore in FY25 compared to FY24.
The company has a market cap of over Rs 5,000 crore with a 1-year stock price CAGR of 100 per cent. The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 681.95 per share. Investors should keep an eye on this small-cap aerospace & defence stock.
Disclaimer: The article is for informational purposes only and not investment advice.