Shares of Paras Defence and Space Technologies Ltd. surged over 9% on the NSE on Tuesday, tracking gains in the broader defence sector and ahead of a key board meeting scheduled later this week.
The company's board is set to meet on Wednesday to consider a stock split, approve audited financial results for the fourth quarter and the full fiscal 2025, and potentially declare a final dividend. While the agenda includes the stock split proposal, the company has not yet disclosed the proposed ratio, as per its regulatory filing.
The rally in Paras Defence shares was also supported by a broader rebound in defence stocks, which emerged as the top gainers on Tuesday after facing profit-booking pressure last week. Paras Defence was among the top three performers in the segment.
In a key development earlier this year, on January 7, the company announced that it had received a lifetime-validity manufacturing licence from the Department for Promotion of Industry and Internal Trade to produce MK46 and MK48 belt-fed light machine guns, with an annual production capacity of 6,000 units each.
Paras Defence Share Price Data
The scrip rose as much as 9.28% to Rs 1,249.90 apiece, the highest level since Sept. 6, 2024. It pared gains to trade 8.58% higher at Rs 1,241.90 apiece, as of 11:58 a.m. This compares to a 0.04% advance in the NSE Nifty 50 Index.
It has risen 22.86% on a year-to-date basis, and 70.14% in the last 12 months. Total traded volume so far in the day stood at 8.05 times its 30-day average. The relative strength index was at 51.98.
One analyst tracking the company maintains a 'buy' rating, according to Bloomberg data. The average 12-month consensus price target implies an upside of 6.6%.
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