Tonbo Imaging or Paras Defence: which defence stock looks the stronger buy
Moody's compares Tonbo Imaging, launching an IPO worth Rs.852 crore, with Paras Defence on cash flow, debt and valuation.
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what happened
Moody's compares two Indian makers of defence optics and optronics. Tonbo Imaging opened its Rs.852 crore IPO on 15–19 October 2026, with a price band of Rs.665–700 per share. Paras Defence is already listed, and its market capitalisation is estimated at about Rs.10,000 crore.
Tonbo's strength lies in its non-ITAR technology and exports to more than 24 countries. However, the company has negative operating cash flow, and its working capital cycle has stretched to 517 days. The whole IPO is an offer for sale by existing shareholders, so the company receives none of the proceeds. Paras grew FY26 revenue 30.69% and generates positive operating cash flow, but depends heavily on related parties.
On earnings multiples, Tonbo is valued at 78.8 times FY26 earnings, while Paras trades at about 105 times.
why it matters
For investors, the key question is how well profits turn into cash and how dependent each company is on government orders. High multiples for both leave little room for delays in contract execution.
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- Tonbo Imaging vs Paras Defence: Which is the better defence stock? — Moody's, 28 October 2026 at 03:33 UTC
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