Paras Defence Shares Propel 10% Ahead of Q4 Results; All Eyes on Stock Split, Dividend Rollout

Shares of Paras Defence and Space Technologies skyrocketed 10% on April 30, extending its bull run to third session in a row. The stock has witnessed strong buying in recent sessions as growing geopolitical tensions between India and Pakistan sparked hopes of the government securing more defence equipment.

Meanwhile, anticipation is also building around the stock ahead of its Q4 result announcement, due later today. Along with the quarterly results, the company’s board is also set to decide on plans for a stock split and dividend rollout, both of which are closely tracked by investors.

Shares of Paras Defence have notched more than 30% gains in three straight sessions, bringing it at a kissing distance of its all-time high of Rs 1,592.70. Around noon, shares of Paras Defence were trading at Rs 1,416.25 on the NSE, though firm in the green, but still off its day’s high of Rs 1,468.95.

The surge in the counter was also driven by a sharp uptick in trading volumes. As much as 81 lakh shares of the defence company changed hands on the exchanges thus far, already much higher than the one-month daily traded average of merely nine lakh shares.

Aside from that, buzz over increased government procurement of defence equipment has also been panning out well in the background for players like Paras Defence. "While India has signed the deal to purchase 26 Rafael Marine combat aircraft worth around Rs 64,000 crore from France, reports are also suggesting that the cabinet might give its approval for Rs 25,000 fund for Maritime Development Fund (MDF) boosting the shipping sector," said Siddhartha Khemka, head - research, wealth management, Motilal Oswal Financial Services.

In addition to that, the terrorist attack on civilians in Kashmir’s Pahalgam, which claimed the lives of 26 people has worsened the ties between India and Pakistan. This has also raised expectations of more work coming the way for defence companies as India stands to strengthen its defence prowess.