Paras Defense and Space Stock Price Analysis and Quick Research Report. Is Paras Defence & Space an appealing stock to invest in?

To estimate a company's true net worth, stock investors must do a thorough review of its financial data. This is often accomplished by reviewing the company's profit and loss account, balance sheet, and cash flow statement, which can be time-consuming and difficult.

Examining a company's financial ratios is a simpler way to determine its success, which can help make sense of the vast quantity of information contained in its financial statements. Paras Defence &Space's stock price today is Rs 1,388.25. Here are a few key ratios that should be included in every investor's research process, or, more simply, how to analyze Paras Defence & Space.

• Return on Assets (ROA): - Return on Assets measures how effectively a company can earn a return on its investment in assets. In other words, ROA shows how efficiently a company can convert the money used to purchase assets into net income or profits. Paras Defence & Space has ROA of 7.50 % which is a bad sign for future performance. (higher values are always desirable.)

• Current ratio: - The current ratio measures a company's ability to pay its short-term liabilities with its short-term assets. A higher current ratio is desirable so that the company could be stable to unexpected bumps in business and economy. Paras Defence & Space has a Current ratio of 4.53 .

• Return on equity: (ROE) measures the ability of a firm to generate profits from its shareholders' investments in the company. In other words, the return on equity ratio shows how much profit each rupee of common stockholders’ equity generates. Paras Defence &Space has a ROE of 10.16 % .(higher is better)

• Debt-to-equity ratio: - It is a good metric to check out the capital structure along with its performance. Paras Defence &Space has a debt-to-equity ratio of 0 which means that the company has low proportion of debt in its capital.

• Sales growth: - Paras Defence &Space has reported revenue growth of 19.04 % which is fair in relation to its growth and performance. 

• Operating Margin: - This will tell you about the operational efficiency of the company. The operating margin of Paras Defence & Space for the current financial year is 26.17 %.

• Dividend Yield: - It tells us how much dividend we will receive in relation to the price of the stock. The current year dividend for Paras Defence &Space is Rs 0 and the yield is 0 %.

• Earnings Per Share: - It tells us how much profit is allocated to to each outstanding share of a common stock. The latest EPS of Paras Defence &Space is Rs 8.77 . The higher the EPS, the better it is for investors.

• Strengths

• The company has shown a good profit growth of 21.63% for the past 3 years.

• The company has significantly decreased its debt by 29.13 Cr.

• The company is virtually debt free.

• The Company has been maintaining an effective average operating margin of 28.56% in the last 5 years.

• company has a healthy liquidity position with current ratio of 4.53.    

• Paras Defence shares hit record high, up 55% in just 3 sessions; here's what tech charts indicate

Limitations

• The company has shown a poor revenue growth of 13.50% for the Past 3 years.

• The company has high debtor days of 226.99.

• The company has contingent liabilities of 102.67 Cr.

• The company is trading at a high PE of 158.22.

• The company is trading at a high EV/EBITDA of 74.87.

One can find all the financial ratios of Paras Defence &Space in Ticker for free. Also, one can get the intrinsic value of Paras Defence &Space by using valuation calculators, which are available with a  Demium Research Analyst subscription. 

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