Shares of Paras Defence and Space Technologies Ltd extended their losing run for a third straight session on Wednesday, slipping 1.17 per cent to close at Rs 850.50. With this, the stock has shed 8.89 per cent over the past three trading days, following the company’s 1:2 stock split carried out on June 4.
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.
The defence company had launched its initial public offering (IPO) in September 2021 at Rs 175 per share, which adjusts to Rs 87.50 post-split. Despite the recent correction, the stock has surged 872 per cent from its IPO price, delivering multibagger returns in under four years.
An analyst sees a buying opportunity in Paras Defence amid the pullback with key support seen in the Rs 816-790 range.
Drumil Vithlani, Technical Research Analyst at Bonanza, believes the current pullback presents an attractive risk-reward setup. He suggests traders may consider entering at current levels, setting a stop loss below Rs 816, with upside targets at Rs 897 and Rs 934.
Meanwhile, Shiju Koothupalakkal of Prabhudas Lilladher highlighted Rs 790 as a crucial support level to monitor.
The counter traded lower than the 5-day simple moving average (SMA) but higher than the 10-day, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 54.40. 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 52.66 against a price-to-book (P/B) value of 7.17. 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 May 19, 2025, promoters held a 53.74 per cent stake in Paras Defence, 3.31 per cent lower than the March 2025 quarter.