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Shares of Paras Defence and Space Technologies Ltd surged over 8 per cent in early trade on Monday, riding high on a sector-wide rebound and investor excitement ahead of its crucial board meeting on May 1.

The company, which has gained over 52 per cent in the past year, is scheduled to review a stock split proposal and announce its Q4 and FY25 audited financial results this Wednesday. A final dividend declaration is also on the cards, according to the firm’s latest exchange filing. However, the stock split ratio has not yet been disclosed.

At 10:35 a.m., Paras Defence was trading 6.2 per cent higher at Rs 1,109.8 apiece on the NSE after hitting an intraday high of Rs 1,129. The stock outperformed both the benchmark Nifty 50 up 0.89 per cent and the Nifty Defence index, which was the top sectoral gainer, rising 3.71 per cent.

Defence stocks staged a sharp rebound on Monday after last week’s profit booking. Paras Defence was among the top three gainers in the Nifty Defence index, with volumes spiking over six times its 30-day average. The relative strength index (RSI) stood at 65.15, indicating bullish momentum.

The rally comes on the back of robust long-term defence order flows and rising domestic manufacturing focus. Earlier in January, the company received a lifetime-validity manufacturing licence for MK46 and MK48 belt-fed light machine guns, with an annual production capacity of 6,000 units each.

All eyes will now be on the May 1 board meet for clarity on the stock split and earnings performance. With defence stocks back in action, Paras Defence’s strategic announcements could act as a fresh trigger for further upside.

More to come...

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