Paras Defence shares slide 9% in 2 days; analysts advise near-term caution

Shares of Paras Defence and Space Technologies Ltd declined for the second straight session on Wednesday, mirroring a broader selloff in defence-related counters even as domestic benchmarks remained positive. The stock fell 4.44 per cent to hit a day low of Rs 1,575, extending its two-day loss to 9.19 per cent. Despite the recent drop, the stock remains over 60 per cent higher on a six-month basis.

Analysts suggest Paras Defence may be entering a consolidation or corrective phase after a sharp rally. Key support levels range between Rs 1,500–1,571, with further downside risk if breached. Long-term investors may hold, but near-term caution is advised unless the stock moves above Rs 1,630.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, believes Paras Defence may be entering a consolidation phase after its sharp rally. He advised long-term investors to hold their positions and consider accumulating the stock during dips.

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, noted that the stock is undergoing a time-wise correction. He sees support in the Rs 1,530–1,500 zone and warned that a breach below this range could trigger profit booking towards Rs 1,400–1,380. He recommended trailing profits with a stop loss at Rs 1,500.

Drumil Vithlani, Technical Analyst at Bonanza, highlighted weakening bullish momentum and a possible trend reversal. He pegged immediate support at Rs 1,571, cautioning that a close below this level could lead to further decline toward Rs 1,515. The stock needs to reclaim Rs 1,630 to shift the bias back to the upside.

Bourses BSE and NSE have put the securities of Paras Defence under the long-term ASM (Additional Surveillance Measure) framework. Exchanges place stocks in short-term or long-term ASM frameworks to alert investors about high volatility in share prices.

The company is primarily engaged in the designing, developing, manufacturing and testing of various defence and space engineering products. It has five major product category offerings in defence and space optics, defence electronics, heavy engineering, electromagnetic pulse protection solutions and niche technologies.

As of March 2025, promoters held a 53.74 per cent stake in Paras Defence, 3.31 per cent lower than the previous quarter.