Aerospace & Defense Stock Alert! Record Date Announced For 1:2 Stock Split; Should Traders Consider Buying?

Offering top-notch products and solutions within the IDDM category, Paras Defence and Space Technologies Ltd. is a major participant in the Indian defence and space industry. Optics and Optronic Systems and Defence Engineering (which includes Defence Electronics, EMP Protection Solutions, and Heavy Engineering) are the company's two business verticals. After the Board announced the record date for the stock split, Paras Defence and Space Technologies Ltd.'s shares closed Tuesday's trading session 0.45% higher on the BSE at Rs 1614.40, with a market capitalization of Rs 6,505.01 Cr.

Paras Defence Stock Split Record Date

"Pursuant to Regulation 42 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that, the Company has fixed Friday, July 04, 2025 as the "Record Date" for the purpose of determining the eligibility of shareholders for sub-division/ split of existing 1 (one) Equity Share of face value of Rs. 10/- (Rupees Ten Only) each fully paid up into 2 (two) Equity Shares of face value of Rs. 5/- (Rupees Five Only) each fully paid up, as approved by the shareholders through Postal Ballot on June 07, 2025," said Paras Defence and Space Technologies in a regulatory filing on Tuesday, 10th June.

Paras Defence Upcoming Dividend

The Board has "recommended the payment of final dividend of Rs. 0.50/- per equity share of Rs. 5/- each for the financial year ended March 31, 2025 (post the completion of the sub-division/ split of equity shares). The date of the Annual General Meeting (AGM) for the FY 2024-25, the record date for the purpose of the final dividend and the date from which dividend, if approved by the shareholders, will be paid, shall be communicated in due course," Paras Defence had earlier informed stock exchanges on April 30, 2025.

Paras Defence Financials

Paras Defence recorded a 12-month consolidated revenue of Rs 333.85 cr for the fiscal year that ended in March 2025, which was a considerable year-over-year rise from Rs 232.39 cr the year before. Additionally, profitability increased: the company's net profit for the last 12 months was around Rs 65.06 crore, up from Rs 34.22 crore in FY24. With a net profit margin of around 17.4% for the fiscal year, it demonstrated strong operating strength. As of March 2025, the capital of shareholders stood at Rs 643.46 crore, demonstrating the stability of the balance sheet.

The company's March 2025 quarter net sales of Rs 108.23 crore represented a 35.81% growth over the March 2024 quarter's net sales of Rs 79.69 crore. Its net profit increased by 97.79% from Rs. 9.97 crore in Q4FY24 to Rs. 19.72 crore in Q4FY25. From Rs. 17.73 crore in the quarter ended in March 2024 to Rs. 32.34 crore in the quarter ended in March 2025, EBITDA has increased by 82.4%.

Paras Defence Share Price Target

Hardik Matalia - Derivative Analyst at Choice Broking said, "PARAS is currently trading around ₹1,617 and is exhibiting signs of strength, consolidating in a tight range near higher levels after witnessing a strong bounce from its recent lows. This sideways movement signals a pause in momentum but also builds the case for a potential continuation, especially if the stock holds key support zones."

"The consolidation near the upper band indicates that the stock is digesting recent gains, and a decisive breakout on either side of the range will be crucial for confirming the next directional move. Notably, if PARAS manages to reverse from its demand zones with strength, it could resume its upward trajectory, setting the stage for a potential breakout above key resistance. A sustainable move above ₹1,750 will be the trigger for the next leg of the rally, supported by a structural breakout from the ongoing range. Until then, traders should remain cautious and avoid premature entries," the analyst added.

"The Relative Strength Index (RSI) is currently at 58.01, reflecting a neutral stance and indicating that momentum is in a wait-and-watch mode-neither overheated nor weak, which aligns well with the ongoing consolidation. Technically, PARAS continues to trade above all its key moving averages across short-, medium-, and long-term periods, reaffirming its overall bullish bias. Short-term traders are advised to wait for a clear signal-a bullish reversal from demand zones or a breakout above ₹1,750-before initiating fresh positions. These triggers will offer better confirmation and risk-reward setups," Hardik Matalia stated.

"Long-term investors holding the stock can continue to ride the trend while trailing their stop-loss to ₹1,400. As long as the stock maintains above this level, the broader bullish structure remains intact and buying on dips continues to be a favourable strategy. The overall trend stays positive, with the current consolidation phase acting as a potential launchpad for further upside-provided key levels are respected," the analyst further recommended.

"Paras Defence is in a solid uptrend. It recently broke above short-term resistance in the ₹1,600-₹1,610 zone and is now moving toward the next resistance around ₹1,640-₹1,650. The stock is trading above its key moving averages, confirming bullish sentiment. Immediate support lies near ₹1,580, with a stronger base forming at ₹1,550. Trading volumes are picking up, supporting the upward move. Traders can consider buying on dips toward ₹1,600-₹1,605, with a stop-loss below ₹1,580. As long as it holds above these supports, the momentum looks set to carry it higher," commented Riyank Arora - Technical Analyst - Mehta Equities Limited.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.