Paras Defence shares tumble 22% in a month amid continued sell-off; what lies ahead?

Shares of Paras Defence and Space Technologies Ltd extended their sharp decline for a second straight session on Friday, dropping 4.35 per cent to close at Rs 633.05. With this fall, the stock has lost 7.58 per cent over the last two sessions and 22.20 per cent in the past month.

Both BSE and NSE have placed the stock under the long-term Additional Surveillance Measure (ASM) framework -- a step typically taken to alert investors amid increased price volatility.

On the earnings front, the company posted a marginal 1.1 per cent year-on-year (YoY) increase in consolidated profit after tax (PAT) at Rs 14.27 crore, compared to Rs 14.11 crore in the same quarter last year. Revenue from operations grew 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, analysts pointed out that the Rs 610–600 range now serves as a crucial support zone.

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher (PL), said, "The stock has seen a notable correction from its recent peak around the Rs 972 level and currently displays a weak bias, suggesting potential for further downside in the near term. The Rs 600 mark is expected to serve as a major support zone. However, a recovery cannot be ruled out. For the outlook to turn positive, the stock would need to decisively move above Rs 690, which could signal renewed upward momentum."

Drumil Vithlani, Technical Research Analyst at Bonanza, noted, "The stock has seen a steep correction this week. A decisive close below the Rs 673 mark has paved the way for a potential decline towards Rs 610, which now serves as the next support level. A breach of this support could trigger a deeper correction."

Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi, observed that support could be seen at Rs 610 and immediate resistance at Rs 680. A sustained move above Rs 680 could push the stock towards Rs 700, with the near-term trading range seen between Rs 610 and Rs 700.

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.