NSE:PARAS's ROE % is ranked better than 69.74% of 347
companies
in the Aerospace & Defense industry
Industry Median: 5.91
vs NSE:PARAS: 12.97
Paras Defence And Space Technologies (NSE:PARAS) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Paras Defence And Space Technologies ROE % Related Terms
Paras Defence And Space Technologies ROE % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Aerospace & Defense subindustry, Paras Defence And Space Technologies's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Paras Defence And Space Technologies ROE % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Paras Defence And Space Technologies's ROE % distribution charts can be found below:
* The bar in red indicates where Paras Defence And Space Technologies's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Paras Defence And Space Technologies (NSE:PARAS) has a ROE % of 18.96% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Paras Defence And Space Technologies and its competitors. This is 81% above median its historical median of 10.48. Over the past decade, Paras Defence And Space Technologies' ROE % has ranged from 7.47 to 12.97. According to the industry distribution chart, Paras Defence And Space Technologies ranks #105 out of 347 companies in the Aerospace & Defense industry, placing it in the top 30.3%.
Is Paras Defence And Space Technologies' ROE % too high?
Paras Defence And Space Technologies' current ROE % of 18.96% is 81% above median its 10-year median of 10.48. Over the past 10 years, this metric has ranged from a low of 7.47 to a high of 12.97. The Aerospace & Defense industry median ROE % is 5.91. Paras Defence And Space Technologies' value of 18.96% is 220.8% above this industry median. Based on the distribution chart, Paras Defence And Space Technologies ranks #105 out of 347 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Paras Defence And Space Technologies has a GF Score™ of 84/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Paras Defence And Space Technologies' ROE % compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, Paras Defence And Space Technologies ranks #105 out of 347 companies for ROE %. This puts Paras Defence And Space Technologies in the upper half of its industry. The industry median ROE % is 5.91. Paras Defence And Space Technologies' value of 18.96% is 220.8% above this benchmark. Historically, Paras Defence And Space Technologies' own ROE % has ranged from 7.47 to 12.97 over the past decade. While the company's 10-year median is 10.48 vs. the industry median of 5.91, Paras Defence And Space Technologies has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for an Aerospace & Defense company?
The median ROE % among Aerospace & Defense companies is 5.91, based on 347 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Paras Defence And Space Technologies's current ROE % of 18.96% is 220.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Paras Defence And Space Technologies and its competitors. For the Aerospace & Defense industry, the median ROE % is 5.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paras Defence And Space Technologies's current ROE % is 18.96%, which is 81% above median its own 10-year median of 10.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Paras Defence And Space Technologies stock overvalued right now?
Based on GuruFocus' analysis, Paras Defence And Space Technologies (NSE:PARAS) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹829.23, compared to a current price of ₹1,233.75 — trading 48.8% above its estimated fair value. The current ROE % is 18.96%, which is 81% above median its 10-year median of 10.48 and 220.8% above the Aerospace & Defense industry median of 5.91. Paras Defence And Space Technologies' overall GF Score™ is 84/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Paras Defence And Space Technologies (NSE:PARAS), the current ROE % is 18.96% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Paras Defence And Space Technologies (NSE:PARAS) Overvalued in 2026?
Based on GuruFocus' analysis, Paras Defence And Space Technologies stock appears to be overvalued.
The current stock price of ₹1,233.75 is trading 48.8% above its estimated GF Value™ of ₹829.23.
GuruFocus considers Paras Defence And Space Technologies to be Significantly Overvalued.
Key valuation signals for NSE:PARAS:
ROE %: 18.96% (81% above median its 10-year median of 10.48)
GF Value™: ₹829.23 vs. price of ₹1,233.75 (48.8% above fair value)
Industry Position: 220.8% above the Aerospace & Defense median (#105 of 347)
No single metric tells the full story. See the NSE:PARAS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Paras Defence And Space Technologies Business Description
Paras Defence And Space Technologies Ltd is engaged in the designing, developing, manufacturing, and testing of various defense and space engineering products and solutions. The company's product portfolio includes lens barrels, rugged networking and communication equipment, multifold lenses, metal mirrors, submarine winches, and mill grade control systems among others. Its operating segments are; Optics & Optronic Systems; and Defence Engineering. The maximum revenue for the company is derived from its Optics and Optronic Systems segment. Geographically, the firm generates a majority of its revenue from its customers within India and the rest from outside India through exports.
84GF Score
Get the complete analysis for NSE:PARAS
ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:PARAS has been successfully added to your 
