Paras Defence shares dive 8%; should investors consider profit booking?
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.
- Jul 7, 2025,
- Updated Jul 7, 2025 1:31 PM IST
Shares of Paras Defence and Space Technologies Ltd declined sharply on Monday, snapping a four-day winning streak. The stock dropped 8.02 per cent to a day low of Rs 858.60. The drop followed the company's recent 1:2 stock split. The defence firm had launched its IPO in September 2021, raising Rs 170.78 crore through a fresh issue at Rs 175 per share — now equivalent to Rs 87.50 after the split. Despite the pullback, the stock has delivered impressive gains of 881.25 per cent from its IPO price in less than four years.
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.
From a technical perspective, Paras Defence is likely to find support in the Rs 856–850 range, with the next support zone around Rs 790–780. On the upside, a decisive break above the Rs 950–970 range is needed to signal further upward potential. However, an analyst has recommended booking profits at the current levels.
Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher (PL), said, "The stock has been holding strong support around the Rs 780-790 zone and has recently shown a sharp upward move with noticeable volume participation, which has improved the overall bias. Going forward, a decisive break above the Rs 950-970 range is crucial to confirm a breakout, potentially leading to fresh upward targets at Rs 1,100 and Rs 1,220 levels. The Rs 790 mark remains a key support level to watch."
According to Sebi-registered independent analyst AR Ramachandran, "Paras Defence is bearish but also overbought on daily charts with strong resistance at Rs 973. Investors should be booking profits as a daily close below the support of Rs 856 could lead to a downward target of Rs 770 in the near term."
Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi, observed that support on the counter will be at Rs 850 and resistance at Rs 930. "A decisive move above Rs 930 level may trigger a further upside towards Rs 950. The expected trading range will be between Rs 850 and Rs 950 the short term," Patel added.
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.
Shares of Paras Defence and Space Technologies Ltd declined sharply on Monday, snapping a four-day winning streak. The stock dropped 8.02 per cent to a day low of Rs 858.60. The drop followed the company's recent 1:2 stock split. The defence firm had launched its IPO in September 2021, raising Rs 170.78 crore through a fresh issue at Rs 175 per share — now equivalent to Rs 87.50 after the split. Despite the pullback, the stock has delivered impressive gains of 881.25 per cent from its IPO price in less than four years.
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.
From a technical perspective, Paras Defence is likely to find support in the Rs 856–850 range, with the next support zone around Rs 790–780. On the upside, a decisive break above the Rs 950–970 range is needed to signal further upward potential. However, an analyst has recommended booking profits at the current levels.
Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher (PL), said, "The stock has been holding strong support around the Rs 780-790 zone and has recently shown a sharp upward move with noticeable volume participation, which has improved the overall bias. Going forward, a decisive break above the Rs 950-970 range is crucial to confirm a breakout, potentially leading to fresh upward targets at Rs 1,100 and Rs 1,220 levels. The Rs 790 mark remains a key support level to watch."
According to Sebi-registered independent analyst AR Ramachandran, "Paras Defence is bearish but also overbought on daily charts with strong resistance at Rs 973. Investors should be booking profits as a daily close below the support of Rs 856 could lead to a downward target of Rs 770 in the near term."
Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi, observed that support on the counter will be at Rs 850 and resistance at Rs 930. "A decisive move above Rs 930 level may trigger a further upside towards Rs 950. The expected trading range will be between Rs 850 and Rs 950 the short term," Patel added.
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.