Can Paras Defence double investor wealth on listing day? | Paras Defence IPO Analysis

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Disclaimer: This video is only for education purpose. Consult your financial Advisor before investing your money.

Timestamp
0:00 Introduction
1:11 Company profile
4:31 Future growth
6:33 Key Risk
7:09 Financials
8:31 IPO Details
9:44 Conclusion

In this video, I have done the in-depth analysis of Paras defence and space technologies IPO. The share is currently commanding 100% GMP in the grey market and hence I have analyzed if Paras Defence can really double investor wealth on listing day or not.

Paras defence is in the business of designing, developing, manufacturing and testing of defence and space engineering products and solutions. Paras defense has a bright growth prospect on account of government focus on local suppliers for defence and space equipment. There is a strong order book of 304 Cr. Paras defense is planning to expand its production capacity as well as launch new products in the future. There is a strong demand for Paras defense shares in the grey market and current premium is more than 100%. It means there are high chances of solid listing gain. If we look at the negative side, its growth has been muted for last 3 years. Its profitability is low. Its cash flow situation is bad. Overall, financials in the last 3 years are not good. Moreover, there is a risk of high dependence on the Indian government for business. Also it is a very small company with a market cap of less than 1000 cr so it would be highly volatile and can be driven by operators.

As far as valuation is concerned, its PE is 43 which can't be compared with anyone as there is no listed peer in the market.

#parasdefence #ipo #ipo2021