Paras Defence Shares Surge to 52-Week High: Analysts Predict Continued Uptrend
Paras Defence shares have surged by 20%, reaching a 52-week high of Rs 1,157.25 in recent trading. This remarkable growth has led to a year-on-year gain of 109.19% for the multibagger stock. The uptick in Paras Defence shares aligns with a broader trend observed across the defence sector, following Union Minister Rajnath Singh’s announcement of India’s ambitious target to boost defence exports beyond Rs 50,000 crore within the next five years.
The current market sentiment around Paras Defence is overwhelmingly positive, with analysts expressing optimism about its future performance. Shiju Koothupalakkal, a Technical Research Analyst at Prabhudas Lilladher, noted the stock’s recent significant surge, attributing it to the overall strength in the defence sector. He emphasized that Paras Defence has now entered a promising new territory, maintaining a strong positive bias.
Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, also highlighted the stock’s robust outlook based on daily chart analysis. He predicted that the stock could reach an upside target of Rs 1,450, advising investors to place a strict stop-loss at Rs 1,050 to manage risk. Similarly, Osho Krishan, Senior Research Analyst – Technical & Derivatives at Angel One, pointed out the stock’s impressive 20% single-day gain as part of a multi-week breakout. He maintained a bullish stance on the stock, though he cautioned that some profit booking might occur following such a vertical move. Nonetheless, Krishan believes the stock will likely continue its upward trend in the medium term, with a strong support zone identified between Rs 1,100 and Rs 1,000.
Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers, shared a more specific trading range expectation, suggesting that the stock will likely trade between Rs 1,000 and Rs 1,225 over the next month. This prediction aligns with the broader market sentiment that sees strong support for the stock at lower levels while allowing for potential growth.
Paras Defence and Space Technologies Ltd is a company engaged in the design, development, manufacturing, and testing of a range of defence and space engineering products and solutions. As of March 2024, the company’s promoters held a significant 58.94% stake. This strong promoter holding reflects confidence in the company’s strategic direction and growth prospects.
The surge in Paras Defence shares is part of a larger bullish trend in the defence sector, catalyzed by government initiatives aimed at boosting defence exports. Analysts have noted that the overall strength in defence stocks has contributed to Paras Defence’s remarkable performance. The positive outlook from various analysts suggests that while there may be short-term fluctuations due to profit booking, the medium to long-term trajectory for Paras Defence remains upward.
Investors are advised to remain vigilant and consider market conditions and analyst recommendations when making investment decisions. While the current sentiment is positive, maintaining a balanced approach to risk management, such as setting stop-loss levels, can help mitigate potential losses. The optimistic projections for Paras Defence are supported by its strong fundamentals and strategic position within the defence sector, bolstered by government policies aimed at enhancing India’s defence capabilities and export potential.
Overall, the future looks promising for Paras Defence, with analysts forecasting continued growth and identifying key support and resistance levels. Investors should stay informed and consult with financial advisors to navigate the dynamic market environment and make well-informed investment choices.