Paras Defence shares zoom 20% to hit one-year high; will this strong upmove continue?

Shares of Paras Defence and Space Technologies Ltd soared 20 per cent to touch a 52-week high value of Rs 1,157.25 in Friday’s trade. At this price, the multibagger stock has gained 109.19 per cent in a year.

A majority of defence counter saw a sharp uptick today. This came after Union Minister Rajnath Singh announced that India aims to elevate its defence exports to surpass Rs 50,000 crore within the next five years.

For Paras Defence, analysts largely remained positive. With that being said, support could be seen in the Rs 1,100-1,000.

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, “With all the defence pack gathering strength, Paras Defence has also witnessed a significant spurt in the last two sessions. It has entered a new territory with strong bias maintained.”

Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said the counter looked strong on daily charts. “It has potential to hit an upside target of Rs 1,450. Keep a strict stop loss placed at Rs 1,050 for this trade,” he stated.

Osho Krishan, Senior Research Analyst – Technical & Derivatives at Angel One, mentioned that the stock has witnessed a multi-week breakout with a whooping move of 20 per cent in a day.

“The counter seems extremely bullish and is poised to continue its upward march. Meanwhile, on should not become complacent as it might attract some profit booking after the vertical move. However, from a medium-term point of view, the counter seems positive and is likely to continue its northward journey in uncharted territory. On the lower end, Rs 1,100-1,000 is likely to be seen as strong support zone and is expected to augur well for the buyers,” Krishan suggested.

Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, “The expected trading range will be between Rs 1,000 and Rs 1,225 for a month.”

Paras Defence is primarily engaged in the designing, developing, manufacturing and testing of a variety of defence and space engineering products and solutions. As of March 2024, promoters held a 58.94 per cent stake in the company.