Paras Defence Share has emerged as a remarkable multibagger, delivering 950%+ returns since its IPO. Following a 1:2 stock split, the stock once again grabbed investor attention, closing at ₹933.50 on July 4, 2025—hitting the upper circuit amid heavy volumes.
Despite reports of a “50% crash” on some trading platforms, the apparent fall was a technical glitch caused by delayed adjustment to the split in certain apps. In reality, Paras Defence remains structurally and fundamentally strong, backed by aggressive defence-sector policies and a healthy order pipeline.
Company Overview: Paras Defence
| Attribute | Details |
|---|---|
| Website | www.parasdefence.com |
| Sector | Capital Goods |
| Industry | Defence & Aerospace |
| Market Cap | ₹7,523 Crore |
| Enterprise Value (EV) | ₹7,435 Crore (as of Mar 2025) |
| No. of Shares Subscribed | 8.06 Crore |
| Face Value | ₹5 |
| Earnings Per Share (EPS) | ₹7.88 |
| Price-to-Earnings (P/E) | 118.53 |
| Industry P/E | 52.07 |
| Book Value per Share | ₹148.44 |
| Price-to-Book Ratio | 6.29 |
| Dividend Yield | 0.00% |
| PEG Ratio | Negative (Growth phase company) |
What Drove the 950% Rally?
The rally in Paras Defence has been driven by several high-impact developments:
- Strong tailwinds from India’s push for indigenous defence manufacturing (Buy Indian-IDDM procurement).
- Recent ₹22 crore export order for anti-drone systems (CHIMERA 200) from French firm Cerbair.
- Expanding product portfolio in high-tech defence areas like optoelectronics, drone detection, and satellite components.
- A robust and growing order book, exceeding ₹900 crore and projected to cross ₹1,500 crore in FY26.
These factors positioned the company as a top performer among listed defence players in India.
Stock Split: What Changed?
The 1:2 stock split reduced the face value from ₹10 to ₹5, doubling the number of shares in circulation while halving the price. This move improves liquidity and makes the stock more accessible to small investors.
On some broker platforms, the pre-split price (~₹1,700) was not adjusted immediately, leading to an erroneous display of a 50% drop. The adjusted closing price of ₹933.50, however, reflects the correct valuation.
What to Expect Going Forward
Short-Term Outlook
- Expect some volatility as the stock establishes new technical ranges post-split.
- The stock remains above its key moving averages, maintaining bullish sentiment.
Medium to Long-Term Outlook
- Investors should monitor quarterly earnings and the pace of order inflows.
- The P/E ratio of 118.53 indicates stretched valuations, but this may be justified by rapid earnings growth and market leadership.
- With no dividend payout and a negative PEG ratio, the company remains in an aggressive reinvestment and expansion phase.
Paras Defence continues to be a headline-making defence play—not just because of past returns, but due to its positioning in a strategically important sector aligned with India’s long-term policy goals. After a clean stock split and strong financial momentum, the next phase could bring new investors and institutional visibility.
For those seeking a growth-focused defence stock, Paras Defence remains a top contender—though valuation sensitivity and sector risks must be weighed.
Viraj Jain is an active stock market trader and technical analyst with a sharp eye for identifying trend-driven opportunities. Passionate about market movements and price behavior, he specializes in analyzing crucial support and resistance levels in high-momentum stocks. Viraj is dedicated to keeping fellow investors informed with timely stock updates, chart-based insights, and actionable technical analysis that bridges the gap between market noise and informed trading decisions.