Last Updated:July 04, 2025, 13:04 IST
Shares of Paras Defence and Space Technologies were locked in a 10 per cent upper circuit at Rs 933.50 on the BSE; Should you invest?
Paras Defence (Representational Photo)
Paras Defence Shares Hit Upper Circuit: Shares of Paras Defence and Space Technologies were locked in a 10 per cent upper circuit at Rs 933.50 on the BSE during Friday’s intra-day session. The rally came as the small-cap aerospace and defence firm turned ex-split in a 1:1 ratio, subdividing equity shares from Rs 10 to Rs 5 face value.
Over the last four trading sessions, the stock has surged 24 per cent, driven by news that Paras Defence will supply advanced counter-unmanned aircraft system (UAS) technology to CERBAIR, a France-based firm.
The stock recently hit a 52-week high of Rs 971.80 (adjusted for the split) and has more than doubled—soaring 133 per cent—from its 52-week low of Rs 401 touched on April 7, 2025.
Stock Split Details
The board of directors approved the stock split on April 30, 2025, converting 1 equity share of Rs 10 face value into 2 equity shares of Rs 5 each. The record date for the stock split was fixed as Friday, July 4, 2025. Investors purchasing shares on or after this date will not be eligible for the split.
Paras Defence said the move is aimed at enhancing liquidity and making the stock more accessible to retail investors by reducing the per-share price.
Commentary on Israel Exposure
In a recent interview with CNBC-TV18, Amit Mahajan of Paras Defence clarified that the company’s exposure to Israel is primarily for technology transfers and not direct exports. He added that while minor delays of 1–2 weeks are expected in tech transfer from Israeli firms, there is no anticipated supply chain disruption that would impact component imports. The company’s total export exposure to Israel stands at only 5 per cent.
Shares of Paras Defence had closed 0.24% lower at Rs 1,692.20 on Thursday. Over the past six months, the stock has gained 75 per cent.
Strong Tailwinds for India’s Defence Sector
India’s defence sector is entering a high-growth phase, with the Ministry of Defence targeting Rs 3 trillion in indigenous production by 2028–29F, implying a 19 per cent CAGR from FY24 levels. Defence exports are expected to rise to Rs 50,000 crore by the same year, building on the 32.5 per cent YoY jump recorded between FY23 and FY24.
Analysts at InCred Equities highlighted government initiatives such as the Technology Development Fund, which has sanctioned 78 projects worth Rs 333 crore, and DRDO’s support for the industry through free patent access and technology transfers.
For FY26BE, the MoD has allocated Rs 6.81 trillion, up 6.3 per cent YoY. Given ongoing geopolitical tensions—especially in the Indo-Pacific and along India’s borders with China and Pakistan—InCred projects the defence budget to grow by around 10 per cent YoY in FY27F to reach Rs 7.49 trillion.
Meanwhile, the Defence Acquisition Council (DAC) has approved capital procurement proposals worth Rs 1.05 trillion. All fall under the ‘Buy (Indian–IDDM)’ category, ensuring only domestically designed, developed, and manufactured systems will be procured.
About Paras Defence and Space Technologies
Paras Defence is a leading Indian defence engineering company offering a full suite of indigenously designed, developed, and manufactured (IDDM) products and solutions across the defence and space sectors.
Its client portfolio includes marquee names such as DRDO, ISRO, BEL, L&T, Ordnance Factories, and the Ministry of Defence. The company also exports to several global markets including Israel, Europe, the USA, and South Korea.
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Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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