Paras Defence & Space Technologies’ share price has corrected significantly since it turned ex-split in the first week of July.
On NSE, the stock is a little over Rs 800 levels; however, it has dropped by nearly 14% since its ex-split. Paras Defence turned ex-split for the first time in the ratio of 1:10. Is Paras Defence stock offering better return on equity (ROE) than its rivals?
Paras Defence & Space Technologies Share Price:
On NSE, Paras Defence stock stood at Rs 807 on July 16th, down by 0.2% with a market cap of Rs 6,503.40 crore. Adjusted for stock split, the new 52-week high and low of Paras Defence are at Rs 972.50 and Rs 404.70 apiece respectively.
The stock is down by 13.56% from its ex-split closing price. Paras Defence turned ex-split on July 4th, and on this day, the stock had closed at Rs 933.60 apiece.
Paras Defence and Space Technologies Ltd Stock Split:
The company turned ex-split in the ratio of 1:10, meaning, sub-division/ split of existing 1 (one) Equity Share of face value of Rs. 10/- (Rupees Ten Only) each fully paid up into 2 (two) Equity Shares of face value of Rs. 5/- (Rupees Five Only) each fully paid up.
The eligible shareholders who received the split adjustment in their portfolio are those who held the stock as of the July 4th record date. Any new buying in Paras Defence after July 4th will not see the stock split impact, because it is a fresh buying.
This was Paras Defence’s first-ever stock split.
Paras Defence ROE Vs Other Defence Stocks:
Compared to its peers, Paras Defence’s return on equity is lower at 9.91%, as per Trendlyne data.
The highest ROE is given by Mazagon Dock Shipbuilders at 30.4%, followed by Bharat Electronics (BEL) with 26.64% ROE. Also, Hindustan Aeronautics (HAL) and GRSE have ROE of 23.91% and 25.36% respectively. The ROE of Bharat Dynamics and Zen Technologies is around 13.71% and 16.47%, as per the data.
What is a ROE? As per Angel One, Return on Equity (ROE) indicates a company’s profitability by measuring how much the shareholders earn for their investment in the company. It exhibits how well the company has utilised the shareholders’ money. ROE is calculated by dividing net profit by net worth. If the company’s ROE turns out to be low, it indicates that the company did not use the capital efficiently invested by the shareholders.
Paras Defence and Space Technologies Ltd. is a premier Indian defence engineering company, delivering a comprehensive suite of indigenously designed, developed, and manufactured (IDDM) products and solutions for the defence and space sectors. With over 40 years of sustained business growth, Paras has evolved into a pivotal player supporting India’s strategic interests across land, naval, air, and space domains.