Mutibagger Paras Defence shares hit 10% upper circuit level after adjusting for 1:2 stock split

Shares of Paras Defence and Space Technologies Ltd hit their upper circuit on Friday following a stock split in a 1:2 ratio. The stock, which closed at Rs 1,697.30 on Thursday, opened at Rs 855 on Friday after the price was adjusted to reflect the subdivision. It subsequently rallied 10 per cent to Rs 933.50. Some brokerage trading platforms may still be displaying the unadjusted pre-split price from Thursday, potentially showing an incorrect decline of around 45 per cent in the stock.

Bourses BSE and NSE have put the securities of Paras Defence under the long-term ASM (Additional Surveillance Measure) framework. Exchanges place stocks in short-term or long-term ASM frameworks to alert investors about high volatility in share prices.

The company recently informed bourses that Cerbair, France — a leading player in anti-drone solutions — has acknowledged the rapid advancement made by its subsidiary, Paras Anti-Drone Technologies Pvt Ltd, in the development of the CHIMERA 200 Project, which focuses on drone anti-jamming technology.

As a result, Cerbair has issued a Letter of Intent (LoI) expressing its intent to procure 30 units of the CHIMERA 200 system, valued at 2.2 million euros (around Rs 22.21 crore).

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said, “Following the stock split, the counter hit its upper circuit, mirroring the broader rally in defence stocks after the government allocated over Rs 1 lakh crore to the sector.” He advised long-term investors to hold their positions and consider accumulating the stock during dips.

The Defence Acquisition Council (DAC) approved capital acquisition proposals worth around Rs 1.05 lakh crore. On the technical front, support on the counter could be seen in the Rs 860-856 range.

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, observed that the stock has maintained a steady uptrend, trading above all key exponential moving averages (EMAs). “The breakout level of Rs 860 is expected to act as a support in case of any pullbacks. As long as the stock maintains its momentum, it’s advisable to trail stop-loss orders higher,” he added.

According to Sebi-registered independent analyst AR Ramachandran, “The stock is bullish but also overbought on daily charts but also overbought with the next resistance at Rs 973. Investors should be booking profits as a daily close below support of 856 could lead to a downside target of Rs 770 in the near term.”

Paras Defence launched its initial public offering (IPO) in September 2021, raising Rs 170.78 crore through a fresh issue of shares priced at Rs 175 each — equivalent to Rs 87.50 post the recent split. In less than four years since listing, the multibagger stock has surged 966.85 per cent from its IPO price.

The company is primarily engaged in the designing, developing, manufacturing and testing of various defence and space engineering products. It has five major product category offerings in defence and space optics, defence electronics, heavy engineering, electromagnetic pulse protection solutions and niche technologies.

As of May 19, 2025, promoters held a 53.74 per cent stake in Paras Defence, 3.31 per cent lower than the March 2025 quarter.