Paras Defence shares jump 6%; can the momentum sustain?

Shares of Paras Defence and Space Technologies Ltd saw a sharp uptick in Tuesday's trade. The stock surged 819.85 per cent to hit a day high of Rs 819.85. Last checked, it was up 4.56 per cent at Rs 809.45. At this price, the scrip has rallied 60.90 per cent on a year-to-date (YTD) basis.

Both BSE and NSE have placed Paras Defence under the long-term Additional Surveillance Measure (ASM) framework, a move typically aimed at cautioning investors about elevated price volatility.

A market expert suggested that investors can hold the stock with a medium- to long-term view. Technically, it appears strong on charts, with support around Rs 800-790 levels.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, noted that the stock turned positive today after a two-session decline. Considering the company's order book and presence in the defence sector, he said it can be held for the medium to long term.

Ravi Singh, Senior Vice-President of Retail Research at Religare Broking, noted that the stock looks technically strong and may climb further towards Rs 850 level, with immediate support seen at Rs 800.

According to Sebi-registered independent analyst AR Ramachandran, "Paras Defence stock price is bullish on daily charts with strong support at Rs 790. A daily close above the resistance of Rs 820 could lead to an upside target of Rs 897 in the near term."

The counter traded higher than the 5-day, 100-, 150-day and 200-day simple moving averages (SMAs) but lower than the 10-day, 20-, 30-day and 50-day SMAs. Its 14-day relative strength index (RSI) came at 48.83. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The scrip has a price-to-earnings (P/E) ratio of 50.04 against a price-to-book (P/B) value of 6.82. Earnings per share (EPS) stood at 16.15 with a return on equity (RoE) of 13.62. According to Trendlyne data, Paras Defence has a one-year beta of 1.1, indicating high volatility.

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 June 2025, promoters held a 53.74 per cent stake in Paras Defence.