Paras Defence shares hit 10% lower circuit; analysts flag bearish trend

Shares of Paras Defence and Space Technologies Ltd extended their decline for the second straight session on Monday, plunging 10 per cent to hit the lower circuit at Rs 704.45.

Both BSE and NSE have placed the stock under the long-term Additional Surveillance Measure (ASM) framework -- a move typically intended to caution investors amid heightened price volatility.

On the earnings front, the company reported a marginal 1.1 per cent year-on-year (YoY) rise in its consolidated profit after tax (PAT) at Rs 14.27 crore, compared with Rs 14.11 crore in the same quarter last year. Revenue from operations rose 11.5 per cent YoY to Rs 93.19 crore, up from Rs 83.57 crore in the corresponding period of the previous financial year.

From a technical standpoint, a few analysts highlighted a bearish setup in the near term, with Rs 634–630 seen as a crucial support zone.

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, said, "Paras Defence has witnessed a 10 per cent drop today, marking a breakdown from its recent consolidation on daily charts. The short-term trend has turned negative. Support is expected around Rs 650–630, while a recovery above Rs 810–820 would invalidate the current bearish bias."

Kunal Kamble, Senior Technical Research Analyst at Bonanza, noted, "The stock has broken down from its consolidation range, indicating a shift in trend to the downside. The Rs 633.70 level now acts as strong support. The stock appears bearish in the short to medium term, and fresh positions should be avoided unless a clear reversal emerges."

Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi, observed that support could be seen at Rs 650 and immediate resistance at Rs 770. A sustained move above Rs 770 could push the stock towards Rs 800, with the near-term trading range seen between Rs 650 and Rs 800.

Paras Defence is engaged in designing, developing, manufacturing, and testing a range of defence and space engineering products. Its portfolio spans five major segments: defence and space optics, defence electronics, heavy engineering, electromagnetic pulse protection solutions and niche technologies.

As of June 2025, promoters held a 53.74 per cent stake in the company.