Paras Defence ex-split: Mutlibagger defence stock Paras Defence and Space Technologies is showing up to 50 per cent fall in some trading apps today as all these the shares turned ex-split, adjusting to the pre-announced corporate action. The company had announced split shares in 1:1 ratio, which is indicating a sharp downside in their stock price.
Paras Defence has split its shares with a face value of Rs 10 each in to two shares with a face value of Rs 5 each. The company has fixed Friday, July 04, 2025 as the record date for the purpose of determining the eligibility of shareholders for sub-division as approved by the shareholders through on June 07, 2025.
Only those shareholders who hold the stock as of the record date will be eligible to receive the bonus shares of Paras Defence and Space Technologies. Investors buying the stock on or after the ex-demerger date will not be considered eligible.
Shares of Paras Defence settled at Rs 1,697.30 on Thursday and opened at Rs 855 on Friday, post the adjustment of subdivision of shares. It is possible that trading apps of certain brokerages might be showing the unadjusted share price for yesterday and, thus, suggesting an up 49-50 per cent-odd fall on the counter.
Post adjustment of bonus issue, shares of Paras Defence gained more than 8 per cent to Rs 917.05 on Friday, with its total market capitalization topping Rs 7,250 crore mark. The stock has tumbled nearly 13 per cent from its adjusted 52-week high at Rs 971.8, hit on May 19, 2025. The stock zoomed nearly 130 per cent in just three months from its adjusted 52-week low at Rs 401.
Paras Defence and Space Technologies had launched its IPO in September 2021, when the company raised a total of Rs 170.78 crore via primary route, selling its shares of Rs 175 apiece, adjusting to Rs 87.5 post split. The stock is currently 950 per cent higher from its IPO price, in less than four years of listing.
Paras is moving from a component supplier to a value-added systems maker by boosting in-house production to maintain higher profits. Its revenue mix has evolved from 90:10 (Component: System) to 60:40, with a long-term objective of 40:60. It expects the orderbook to reach Rs 1,000 crore in FY26 and then Rs 1,500 crore in the near future, said Nirmal Bang Institutional Equities.
The company has been delivering one periscope per quarter with secured orders, ensuring strong revenue visibility over the next 2-3 years. It is presently selling at a P/E of 54 times for FY27E, which is lower than its 3 year average of 60 times. We upgrade the company to ‘buy’ and value it at 62 times FY27E EPS, resulting in a target price of Rs 1,877, (Rs 938.5 post split),” it added.
Promoters own 53.74 per cent stake in the company, while public investors own 46.26 per cent stake as of March 31, 2025. MFs hold 2 per cent stake in the company, while Abu Dhabi Investment Authority owned 3.51 per cent stake in it. More than 1.23 crore retail investors own over 30.54 per cent stake in the company as of May 19, 2025.
SBI Securities believes order inflow will further gain strength as India looks to modernize its arm forces across Army, Navy and Airforce. The defence offset clause will enhance the make in India production. Paras Defence continue to remain among its top picks from the defence space.
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