Paras Defence Share Price: 52.1% CAGR in 3 Years as This Relatively New Defence Stock Takes On HAL, BEL and BDL
- November 4, 2026
- Posted by: Ankit Jaiswal
- Category: Best Stocks
Paras Defence Share Price: 52.1% CAGR in 3 Years as This Relatively New Defence Stock Takes On HAL, BEL and BDL
Paras Defence previous close Rs 1,211. 3-year CAGR 52.1%. Up 3.5x since 3 Nov 2023. ROE 13.51%. Market cap Rs 9,756 crore.
Quick Answer
Paras Defence share price closed at Rs 1,211 on 3 November 2026, which works out to a 52.1% compounded annual return over three years. That is ahead of Hindustan Aeronautics at 37.6%, Bharat Electronics at 40.9%, Bharat Dynamics at 25.1% and Mazagon Dock at 22.9%. The company is far smaller than those four, with a market cap of Rs 9,756 crore, and it trades at a P/E of 91.16 against an industry P/E of 46.68.
The Paras Defence share price has quietly outrun some of India’s best-known defence companies over the last three years, even though most of the attention in the sector goes to the large public sector names. This is a different kind of case: a private company listed in 2021, still small in market value, that has grown its way past several of the sector leaders on a price-return basis.
This article puts numbers on the Paras Defence share price story. We take the three-year compounded annual growth rate (CAGR) of the Paras Defence stock and four established defence companies, set them side by side with market cap, valuation and return on equity, and explain what is driving the gap. All prices are adjusted for splits and bonuses, so the comparison is like for like.
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How Much Has the Paras Defence Share Price Returned in 3 Years?
The Paras Defence share price closed at Rs 344.10 on 3 November 2023 and at Rs 1,211.00 on 3 November 2026. In plain terms, Rs 1 lakh invested three years ago would have grown to roughly Rs 3.52 lakh, a CAGR of 52.1%. This is a price return and does not include the small dividend the company pays, which currently yields 0.04%.
CAGR smooths out the ups and downs of a volatile stock into a single yearly number, which is why it is the fairest way to compare companies of different sizes. A stock that rallies hard in one year and gives some back in another can look dramatic on a chart, but the CAGR shows what an investor actually earned each year on average.
The Paras Defence share price journey also tells you something about how the market values smaller defence manufacturers. Investors have been willing to pay for visible growth in a niche where there are few listed competitors, though that willingness shows up in the valuation, which we look at below.
Paras Defence vs HAL, BEL, BDL and Mazagon Dock: 3-Year CAGR
The table below ranks all five companies by three-year CAGR. Prices on 3 November 2023 are adjusted for corporate actions, and the latest figures are the previous close on 3 November 2026.
| Company | Close on 3 Nov 2023 | Previous close (3 Nov 2026) | Price multiple | 3-year CAGR |
|---|---|---|---|---|
| Paras Defence and Space Technologies | Rs 344.10 | Rs 1,211.00 | 3.5x | 52.1% |
| Bharat Electronics (BEL) | Rs 135.95 | Rs 380.10 | 2.8x | 40.9% |
| Hindustan Aeronautics (HAL) | Rs 1,901.75 | Rs 4,958.60 | 2.6x | 37.6% |
| Bharat Dynamics (BDL) | Rs 519.17 | Rs 1,017.00 | 2.0x | 25.1% |
| Mazagon Dock Shipbuilders | Rs 961.25 | Rs 1,785.10 | 1.9x | 22.9% |
The Paras Defence stock leads the group at 52.1%, followed by Bharat Electronics at 40.9% and Hindustan Aeronautics at 37.6%. Bharat Dynamics compounded at 25.1% and Mazagon Dock at 22.9%, both strong numbers in their own right. Every one of the five more than doubled or came close to doubling investor money in three years, which shows how broad the defence rally has been.
It is important to read the leadership correctly. A smaller base makes high percentage returns easier to achieve, so this comparison of the Paras Defence share price with its larger rivals says more about the pace of growth than about safety or size.
Valuation and Quality: How the Five Defence Companies Compare
| Company | Market cap | P/E | Industry P/E | ROE | Debt to equity |
|---|---|---|---|---|---|
| Hindustan Aeronautics (HAL) | Rs 3,31,712 crore | 35.59 | 46.68 | 22.21% | 0.00 |
| Bharat Electronics (BEL) | Rs 2,77,625 crore | 43.36 | 46.68 | 24.37% | 0.00 |
| Mazagon Dock Shipbuilders | Rs 71,963 crore | 29.36 | 46.68 | 23.45% | 0.08 |
| Bharat Dynamics (BDL) | Rs 37,243 crore | 71.50 | 50.13 | 9.91% | 0.00 |
| Paras Defence and Space Technologies | Rs 9,756 crore | 91.16 | 46.68 | 13.51% | 0.04 |
Hindustan Aeronautics and Bharat Electronics are the heavyweights, with market caps of Rs 3,31,712 crore and Rs 2,77,625 crore. The Paras Defence stock, at a market cap of Rs 9,756 crore, is a fraction of either. Both large companies post a return on equity above 22% with no meaningful debt, which is the quality profile that supports a premium rating.
On valuation, Paras Defence shares trade at a P/E of 91.16, higher than Hindustan Aeronautics at 35.59, Bharat Electronics at 43.36 and Mazagon Dock at 29.36. Bharat Dynamics is the one peer with a higher P/E at 71.50. The industry P/E for the defence group sits around 46.68, so the Paras Defence stock is priced at a clear premium to the sector average, an expectation of faster earnings growth that the company will need to deliver.
Behind the Paras Defence stock, the company earns a return on equity of 13.51% and carries almost no debt, with a debt to equity ratio of 0.04. Its EPS over the trailing twelve months is Rs 13.28. The balance sheet is clean, and the lower ROE compared with the two leaders reflects a company still scaling up its capacity.
What Is Driving Paras Defence Stock?
Paras Defence and Space Technologies makes optics and electro-optical systems for the armed forces, along with heat-shielding products, electromagnetic shielding and increasingly drone and anti-drone solutions. It sells into a market where the government has pushed hard for domestic sourcing under the Make in India defence programme, and where import substitution lists open up orders for local manufacturers.
That policy backdrop matters for a smaller company. The large public sector units win the big platform contracts, but a growing share of subsystems, optics and components can be sourced from private vendors. A company with technical depth in a narrow area can grow quickly from a modest revenue base when even a few orders arrive.
Defence orders are lumpy, and quarterly numbers can move sharply with execution timing. Investors tracking the Paras Defence share price usually watch order inflows, the share of revenue coming from newer product lines such as space optics and drone systems, and working capital, because defence contracts can tie up cash while deliveries are in progress.
How the Giants Stack Up
Hindustan Aeronautics (HAL) is the platform builder, supplying aircraft and helicopters to the Indian armed forces. Its 37.6% CAGR on a market cap above Rs 3.3 lakh crore reflects a long order book and a P/E of 35.59, which is below the industry average of 46.68.
Bharat Electronics (BEL) supplies radars, communication systems and electronic warfare equipment. A return on equity of 24.37% and zero debt explain why the market treats it as a quality compounder, with a 40.9% CAGR over the period.
Bharat Dynamics (BDL) makes missiles and torpedoes. It grew 25.1% a year, but its ROE of 9.91% is lower than the other large names and its P/E of 71.50 is the highest among the four giants, which means the market is already pricing in a pickup in earnings.
Mazagon Dock Shipbuilders builds warships and submarines. At a P/E of 29.36, the lowest of the group, and an ROE of 23.45%, it offers the lowest multiple among defence names with strong returns, supported by a 22.9% CAGR.
What Should Investors Track Next?
Three things are worth watching on the Paras Defence stock. First, order inflow and execution for the Paras Defence stock, since fresh orders are what justify a P/E near 91. Second, margin trends as the company scales its newer product lines. Third, how the broader defence index behaves, because sentiment toward the sector tends to move all the stocks together.
A high multiple leaves less room for disappointment, so position sizing matters. Smaller companies also tend to be more volatile than the large public sector names, and a three-year CAGR is a record of the past, not a forecast.
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How to Compare Defence Stocks Yourself
You can repeat this exercise for any pair of stocks in a few steps. Pick the base date, note the adjusted closing price, take the latest close, and compute (latest price divided by old price) raised to the power of one third, minus one. Then compare the result with market cap, P/E against the industry P/E, ROE and debt to equity.
A stock that scores well on growth but poorly on quality, or the other way round, deserves a closer look before it earns a place in a portfolio. Combining the CAGR with ROE and debt levels when tracking the Paras Defence share price gives a more complete picture than price alone.
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A Newcomer Worth Watching in the Defence Space
The Paras Defence share price has outpaced Hindustan Aeronautics, Bharat Electronics, Bharat Dynamics and Mazagon Dock over three years, compounding at 52.1% a year. The achievement is real, though it comes from a small base and carries a premium valuation, so the next few quarters of order execution will decide whether the pace can continue.
For investors building a view on the sector, the larger names offer scale and strong returns on equity, while the Paras Defence share price reflects faster growth with more volatility. Matching the choice to your own risk appetite is more useful than chasing the highest CAGR on the table.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Frequently Asked Questions
What is the Paras Defence share price today?
Ans. Paras Defence closed at Rs 1,211 on 3 November 2026, according to NSE data. The stock has a market cap of Rs 9,756 crore and a P/E of 91.16. Check live quotes before making any decision, as prices change every trading day.
What is the 3-year CAGR of the Paras Defence stock?
Ans. The Paras Defence stock delivered a price CAGR of 52.1% over three years, moving from Rs 344.10 on 3 November 2023 to Rs 1,211.00 on 3 November 2026. This excludes dividends and is based on adjusted closing prices.
Is Paras Defence better than HAL or BEL?
Ans. The Paras Defence stock has delivered a higher three-year CAGR than Hindustan Aeronautics at 37.6% and Bharat Electronics at 40.9%. HAL and BEL are much larger, post an ROE above 22% and trade at lower P/E multiples. Better depends on whether you prefer growth or scale.
What does Paras Defence do?
Ans. Paras Defence and Space Technologies makes defence optics, electro-optical systems, heat-shielding and electromagnetic shielding products, and drone and anti-drone solutions for the armed forces and space programmes.
Is the Paras Defence stock debt free?
Ans. The company behind the Paras Defence stock carries very little debt. Its debt to equity ratio is 0.04, which is close to zero, and its return on equity is 13.51%. Always check the latest balance sheet for current figures.
Why do Paras Defence shares trade at a higher P/E than the defence industry?
Ans. Paras Defence shares trade at a P/E of 91.16 against an industry P/E of 46.68. The premium reflects investor expectations of faster earnings growth from a smaller base, which the company must deliver through order execution.
Which defence stock gave the highest return in 3 years?
Ans. Among the five companies compared here, the Paras Defence stock led with a 52.1% CAGR, followed by Bharat Electronics at 40.9% and Hindustan Aeronautics at 37.6%. Past returns do not guarantee future performance.
How do I calculate CAGR for a stock?
Ans. Divide the latest price by the starting price, raise the result to the power of one divided by the number of years, and subtract one. Multiply by 100 to get a percentage. Use split and bonus adjusted prices for accurate results.
