Shares of Paras Defence and Space Technologies Ltd on Tuesday continued their strong upmove for the third straight session. The stock jumped 20 per cent to hit an all-time high of Rs 1,388.70. At this price, the scrip has gained 55.06 per cent in just three trading days.
This sharp rise in the share price came amid a bulk deal report. Abu Dhabi Investment Authority (ADIA) has apparently acquired a stake in the company via a bulk deal on Friday. The counter witnessed heavy trading volume in today's session as well.
Around 8.17 lakh shares were last seen changing hands. The figure was higher than the two-week average volume of 2.60 lakh shares. Turnover on the counter came at Rs 110.36 crore, commanding a market capitalisation (m-cap) of Rs 5,415.94 crore.
Separately, a majority of defence counters are on the rise after Union Minister Rajnath Singh announced that the country aims to double military exports to Rs 50,000 crore within the next five years.
On technical setup, the counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 84.62. A level below 30 is defined as oversold while a value above 70 is considered overbought.
The company's stock has a price-to-equity (P/E) ratio of 131.89 against a price-to-book (P/B) value of 10.10. Earnings per share (EPS) stood at 8.77 with a return on equity of 7.66.
"Those holding the counter should continue with their positions. Fresh buying is not advised at current levels. Expected near-term target will be Rs 1,460. A decisive breach above the said level could trigger further upside towards Rs 1,700," Kkunal V Parar, Vice-President of Technical Research and Algo at Choice Broking, told Business Today TV.
From a medium-term point of view, the counter seems positive and is likely to continue its northward journey in uncharted territory, said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One. Rs 1,100-1,000 is likely to be seen as strong support zone, he mentioned.
"The stock has potential to hit an upside target of Rs 1,450. Keep a strict stop loss placed at Rs 1,050," said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.
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.