Ideaforge Technology Shares Locked In Upper Circuit On Winning Order From Defence Ministry

Shares of Ideaforge Technology Ltd. hit upper circuit on Monday after it won an order worth Rs 137 crore from the defence ministry.

The order worth Rs 137 crore is for the supply of mini UAVs with accessories, according to the exchange filing on Monday. The order is to be delivered within 12 months from receiving the order.

The defence sector was trading in green in an otherwise declining market on Monday. Nifty Defence rose 2% amid the ongoing Iran-Israel conflict. Over the weekend, the US conducted strikes on Iran's nuclear sites following Israel's military operations targeting Iran's nuclear power plant sites, which led to retaliatory airstrikes by Iran on Israel. This geopolitical turmoil has significantly impacted global financial markets.

Among the defence stocks, Ideaforge Technology Ltd. was leading the gains, rising 4.19% at Rs 598.70 as of 9:45 a.m. Paras Defence and Space Technologies Ltd. came second with a 3.68% increase, hitting Rs 1,696.70 apiece.

Zen Tech Ltd. stock was up 2.77% at Rs 1,926.60 per share, while DCX System Ltd. rose 2.40% to Rs 298.45.

Shares of Ideaforge were locked in upper circuit and rose as much as 10% to Rs 631.05 apiece, the highest level since Jan. 6. This compares to a 0.70% decline in the NSE Nifty 50.

It has fallen 18.60% in the last 12 months and risen 6.93% year-to-date. Total traded volume so far in the day stood at 1.2 times its 30-day average. The relative strength index was at 59.14.

Out of two analysts tracking the company, one recommends a 'hold' and one suggests 'sell', according to Bloomberg data. The average 12-month consensus price target implies a downside of 38.5% from the previous close.