Smallcap defence stock surges 41% in 3 days, zooms 81% 14 days; here's why

Shares of Paras Defence rallied 10% to hit a nine-month high of ₹1,469, ahead of a board meeting today to consider Q4FY25 results and a stock split proposal.

Paras Defence share price today: Shares of Paras Defence and Space Technologies (Paras Defence) hit a nine-month high of ₹1,469, as they rallied 10 per cent on the BSE in Wednesday’s intra-day trade in an otherwise subdued market. The rally came ahead of a board meeting scheduled for today to consider the March 2025 (Q4FY25) earnings and stock split proposal. In comparison, the BSE Sensex was down 0.08 per cent at 80,225 at 09:25 AM.

 

In the past three trading days, the stock price of the smallcap defence company has surged 41 per cent. In the past 14 trading days, it zoomed 81 per cent from the level of ₹802 on April 7, 2025.

 

Currently, Paras Defence, a leading Indian defence engineering company specialising in advanced optics, mechanical design and cutting-edge defence solutions, is quoting at its highest level since July 2024. It had hit a record high of ₹1,592.75 on July 5, 2024.  Catch Stock Market Latest Updates Today LIVE

 

What’s fueling rally in Paras Defence

 

Paras Defence’s board is scheduled to meet today to consider and approve the sub-division/ split of existing equity shares of the company from face value of ₹10 to a lower denomination.

 

On Friday, April 25, 2025, Paras Defence had informed the BSE that a meeting of the board of directors of the company is scheduled for April 30, 2025, to consider and approve the sub-division/ split of existing equity shares of the company. The board will also consider and approve the standalone and consolidated audited financial results of the company for the quarter and year ended March 31, 2025, and recommend payment of dividend on equity shares of the company for the financial year ended March 31, 2025.

 

What is stock split?

 

A stock split is a decision by a company's board to increase the number of outstanding shares in the company by issuing new shares to existing shareholders in a set proportion to boost the stock's liquidity. Although the number of shares outstanding increases, there is no change to the company's total market capitalisation as the price of each share is split as well.  ALSO READ | PSU defence stock up 4% on heavy volumes; nears record high. Do you own?

 

The rationale behind the stock split is to enhance the liquidity of the company's equity shares and to encourage the participation of retail investors at large by making equity shares of the company more affordable.

 

MoU with Israel’s MicroCon

 

On April 3, Paras Defence signed a strategic Memorandum of Understanding (MoU) with MicroCon Vision Ltd, Israel, a part of Controp and the Rafael Group, marking a significant advancement in India's defence and drone industry. This collaboration will position Paras Defence as an exclusive supplier of advanced drone camera technology in India, at a much lower cost.

 

Paras Defence will bring high indigenous content in these drone cameras and Intelligence, Surveillance, and Reconnaissance (ISR) payloads, improving the country’s self-reliance while lowering costs. It will offer two models, whose usual import price is around ₹20 lakh and ₹40 lakh per unit. Paras Defence anticipates 50-60 per cent price reduction for each model, making advanced surveillance technology more accessible to Indian defence forces and for commercial applications.

 

MicroCon will serve as Paras Defence's exclusive supplier for drone cameras which include ISR payloads and Electro-Optical/Infrared (EO/IR) seekers, while Paras Defence becomes MicroCon’s exclusive partner for ISR operations in India.

 

Indian drone market

 

As the Indian drone market enters a pivotal growth phase, this partnership addresses a critical gap, with drone cameras being one of the most expensive payloads currently imported. The Indian drone market, projected to grow approximately 17 per cent by 2029, driven by demand from defence, homeland security, disaster management, and industrial sectors, will benefit from this collaboration. Strengthening India Israel defence ties has been key in enabling this transformative partnership.   ALSO READ | Trent shares drop 4% after Q4 earnings; results breakdown, analysis here

 

Future outlook and strategic initiatives

 

Looking forward, Paras Defence is poised to maintain its growth trajectory and capitalise on the burgeoning opportunities within the defence and space sectors. The company’s strategic initiatives include focusing on high-growth areas such as optronics systems and counter UAS while continuing to strengthen core capabilities in defence engineering and electromagnetic protection, the company said in its FY24 annual report.

 

The management aims to achieve a revenue growth rate of 25-30 per cent and maintain sustainable margins at the current levels, supported by innovative product offerings and expanding market presence. The government’s ‘Make in India’ initiative provides a favourable environment for continued revenue generation and operational expansion, the company said.