Paras Defence and Space Technologies Ltd witnessed a remarkable surge of 20 percent, reaching a new 52-week high of Rs 1,157.25 during Friday’s trading session. With this surge, the stock, considered a multi-bagger, has recorded a remarkable gain of 109.19 % over the last year.
Today, a significant number of defense-related stocks experienced a notable increase. This surge followed Union Minister Rajnath Singh’s announcement of India’s ambition to elevate its defense exports, aiming to exceed Rs 50,000 crore within the upcoming five years.
Analysts have largely maintained a positive outlook for Paras Defence. Support levels are anticipated around the range of Rs 1,100-1,000.
Shiju Koothupalakkal, the Technical Research Analyst at Prabhudas Lilladher, commented, As the entire defense sector gains momentum, Paras Defence has shown a significant surge in the past two sessions, stepping into uncharted territory while maintaining a strong bias.
Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, expressed confidence in the stock’s strength on daily charts. There’s potential for the stock to reach a target of Rs 1,450. It’s advisable to maintain a strict stop loss at Rs 1,050 for this trade, he advised.
Osho Krishan, Senior Research Analyst – Technical & Derivatives at Angel One, noted the stock’s multi-week breakout, with an impressive 20 percent surge in a single day.
Krishan suggested that the stock appears extremely bullish and is likely to sustain its upward momentum. However, caution is advised as profit booking could set in after such a rapid rise. Nonetheless, from a medium-term perspective, the stock appears optimistic and is expected to continue its upward trajectory into uncharted territory. Strong support is anticipated around the range of Rs 1,100-1,000, which should favor buyers.
Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers, mentioned that the anticipated trading range for the stock over the next month is between Rs 1,000 and Rs 1,225.
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Paras Defence primarily focuses on designing, developing, manufacturing, and testing various defence and space engineering products and solutions. As of March 2024, promoters held a 58.94 percent stake in the company.
