Investors are buzzing with excitement over the recent surge in shares of Paras Defence and Space Technologies Ltd as the company prepares to announce a stock split and dividend during its upcoming board meeting. On April 29, 2025, the stock surged 9%, following a 10% increase the previous day, reflecting strong investor confidence ahead of the crucial announcements.
As of April 29, the shares were trading at Rs 1,247.35 per share, marking a significant gain from the previous day's close of Rs 1,143.75. The stock opened at Rs 1,185.05, indicating a positive market response to the anticipated news. The company has a market capitalization of Rs 5,004 crore and is part of the BSE small cap index, further highlighting its growing prominence in the defence sector.
The Board of Directors is set to meet on April 30, 2025, to review the Standalone and Consolidated Audited Financial Results for the quarter and year ended March 31, 2025. The agenda also includes deliberations on the proposed sub-division or split of existing equity shares and recommendations for dividend payments for the financial year.
Paras Defence's financial performance has shown resilience, with revenues recorded at Rs 81.98 crore in December 2024, a slight decrease from Rs 84.11 crore in September 2024. However, the net profit for December 2024 increased to Rs 16.57 crore, up from Rs 15.60 crore in the prior quarter, indicating a positive trend in profitability. The earnings per share (EPS) also improved to Rs 4.12 in December 2024, compared to Rs 4.00 in September 2024.
On Monday, April 28, the shares of Paras Defence experienced an 8% increase, driven by a broader rally in the defence sector. The company is set to review a stock split proposal and announce its Q4 and FY25 audited financial results during the May 1 board meeting, which has heightened investor anticipation.
At 10:35 a.m. on April 28, the stock was trading 6.2% higher at Rs 1,109.8 on the National Stock Exchange (NSE), even reaching an intraday high of Rs 1,129. The stock's performance outpaced the benchmark Nifty 50, which rose by 0.89%, and the Nifty Defence index, the top sectoral gainer, which climbed 3.71%.
The bullish momentum in the defence sector is attributed to robust long-term order flows and an increased focus on domestic manufacturing. Earlier in January, Paras Defence received a lifetime-validity manufacturing license for MK46 and MK48 belt-fed light machine guns, with an annual production capacity of 6,000 units each. This development has bolstered investor confidence and contributed to the stock's performance.
As the market eagerly awaits the May 1 board meeting, the potential for a stock split and dividend announcement could serve as a fresh catalyst for further gains in Paras Defence's share price. The stock has gained over 52% in the past year, reflecting a growing interest in the company's future prospects.
Investors are advised to stay informed and consider the implications of these upcoming announcements. The excitement surrounding this smallcap defence stock underscores the broader trends in the defence sector, which has become increasingly significant in India's economic landscape.
With the anticipation building, all eyes will be on the board meeting for clarity on the stock split and the company's earnings performance. As the defence sector continues to gain traction, Paras Defence's strategic decisions could potentially lead to new opportunities for investors.
In conclusion, the surge in Paras Defence shares reflects not only investor optimism but also the company's robust financial performance and strategic positioning within the defence industry. The upcoming board meeting is poised to be a pivotal moment for the company, and it remains to be seen how these developments will shape its future trajectory.
