AI Summary
✦ ClarthaParas Defence is an Indian aerospace and defence engineering company serving domestic and international customers. Its revenue spans rugged networking, communications, displays, computing, command systems, mechanical products, avionics, and automated test equipment. Space optics and precision products, including gratings, mirrors, optical domes, antennas, and CFRP structures, add specialised revenue streams. Q1FY27 PAT rose 22% year-on-year to ₹21 crore, supporting 30.7% revenue growth, although declining margins limit operating leverage. ROE is 13.1%, while debt-to-equity of 3.73 indicates high leverage that magnifies financial risk and affects returns. Profit growth of 38.8% currently exceeds revenue growth, but margin compression raises questions about earnings quality. At 116.3x earnings, the stock is richly valued and trades at a substantial premium to its growth rate. Positive defence-sector sentiment and order potential support the outlook, but leverage, margin direction, and execution remain key risks.
Valuation Metrics
Trading 75.2% above historical median. Valuation is rising — currently in the strongly overvalued zone (z-score: +1.93). Confidence: 71%.
Live forward EPS implies next-12-month EPS of ₹16.60. Applying the stock's normalized valuation corridor produces a fair range of ₹1,009.11 to ₹1,400.21, with base value near ₹1,102.07 (-13.1% vs current price).
Live forward estimate anchored to the company's historical valuation corridor.
Forward EPS
₹16.60
Forward P/E
76.4x
Base Fair Value
₹1,102.07
Fair Range
₹1,009.11 - ₹1,400.21
Upside To Base
-13.1%
Estimate Source
Live forward EPS
Growth Estimate
+74.6%
5Y Average
69.03
Current
116.31
Overvalued
84.35
Undervalued
60.79
5Y Average
50.59
Current
84.59
Overvalued
53.40
Undervalued
41.52
5Y Average
9.56
Current
14.07
Overvalued
10.05
Undervalued
8.33
Peers & Comparison
Sector: Industrials · Theme: Aerospace & Defense Equipments
| Company | Rev. Growth | Margin | P/E | vs Avg | 52W Perf. |
|---|---|---|---|---|---|
UNIMECH AEROSPACE N MFG L UNIMECHAerospace & Defense Equipments | +70.9% | 25.3% | 116.7x Premium | +24% vs avg | +32.1% |
BHARAT DYNAMICS LIMITED BDLAerospace & Defense Equipments | -73.0% | 17.2% | 112.1x Premium | +19% vs avg | -13.5% |
SIGMA ADVANCED SYSTEM LTD SIGMAADVAerospace & Defense Equipments | — | 54.0% | 45.9x Undervalued | -51% vs avg | +481.7% |
DATA PATTERNS INDIA LTD DATAPATTNSAerospace & Defense Equipments | +16.8% | 28.5% | 91.2x Fair | -3% vs avg | +75.4% |
AEQUS LIMITED AEQUSAerospace & Defense Equipments | +54.8% | -12.4% | — | — | +61.4% |
MTAR TECHNOLOGIES LIMITED MTARTECHIndustrial Machinery | +130.4% | 12.4% | 160.6x Premium | +71% vs avg | +377.7% |
GARDEN REACH SHIP&ENG LTD GRSEShipbuilding | +38.5% | 10.7% | 37.2x Undervalued | -60% vs avg | +1.7% |
PARAS DEF AND SPCE TECH L trades at a premium (116.0x vs peer avg 94.0x), implying higher growth or quality expectations from the Aerospace & Defense Equipments cohort. Peers include UNIMECH AEROSPACE N MFG L, BHARAT DYNAMICS LIMITED, SIGMA ADVANCED SYSTEM LTD — selected based on business model, industry classification, market cap similarity, and business theme alignment.
Financials
Financial chart data is not available for this company right now.
Results
Income statement data not available.
All values in ₹ Crores unless otherwise stated. Source: Company filings.