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This defense company will make light machine guns, government approved, 10% upper circuit in share – paras defense share price soars 10 percent to hit upper circuit as firm gets license to manufacture light machine guns

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Paras Defense Share Price: Shares of defense sector company Paras Defense and Space Technology hit an upper circuit of 10 percent during trading on Tuesday, January 10. This rise came after the news that the company has received approval from the government to manufacture light machine guns under the Arms Act 1959. In a communication sent to the stock exchanges, the company said that it has received a license for the manufacturing of light machine guns from the Department for Promotion of Industry and Internal Trade (DPIIT). After this news, the company’s shares jumped by 10 percent today.

The company said that this license allows Paras Defense to manufacture MK-46 and MK-48, belt-fed light machine guns (LMG). The company said that it is a modern, improved and refined weapon and its proposed annual capacity is 6,000 guns. This license has been given to Paras Defense under the Arms Act, 1959. The validity of this license is lifelong.

Earlier, Paras Defense had released excellent results for the September quarter of the current financial year. The company said that its net profit in the September quarter increased by 45 percent on an annual basis to Rs 12.70 crore, which was Rs 12.70 crore in the same quarter last year. At the same time, the company’s EBITDA margin increased to 26.1 percent, which was 25.3 percent in the same quarter a year ago.

In the month of November last year, the company was reported to have received an order worth about Rs 61.43 crore from the Instruments Research and Development Establishment (IRDE) of the Ministry of Defence, Government of India. This order was given to upgrade the Optronic Periscope Sight and equip it with features like ESM Warner, which is used by the Indian Navy in its submarine related operations.

Paras Defense shares were locked at its 10 per cent upper circuit limit of Rs 1,066 on the NSE around 2 pm. In the last one year, this defense stock has given returns of about 39 percent to its investors.

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