Up 74% in a month! This defence stock hit record high today; is more steam left?

Most defence counters witnessed a solid upward move on Friday. Paras Defence and Space Technologies Ltd was one of them, recording a sharp rise and emerging as the highest gainer from the select pack. The stock soared 20 per cent to hit an all-time high of Rs 1,816.80 on BSE. At this price, it has rallied 74.10 per cent in a month.

The private defence player recently announced it has signed a Memorandum of Understanding (MoU) with Israel-based HevenDrones to explore opportunities in the defence and civil drone markets. "We are pleased to inform you that Paras Defence and Space Technologies Ltd (PARAS) has entered into an MoU on May 5, 2025 with Hevendrones Ltd, (HD), Israel, with an intent to create new opportunities and expand both parties' business in the Indian and Global Defence sector," the company stated in a regulatory filing.

A few market experts are still positive on the counter. That said, immediate support could be seen at Rs 1,750.

Ravi Singh, SVP - Retail Research at Religare Broking, suggested that the stock can hit an upside target of Rs 1,850 in the near term. He added that investors should keep a stop loss of Rs 1,750 for this trade.

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, said, "Paras has propelled into uncharted territory, procuring over 20 per cent of gains in the week. The recent moves have led the parameters to overbought terrain, suggesting a careful approach with trailing stop losses to higher levels till momentum persists in the counter. For now, Rs 1,600 is expected to provide support against any potential pullbacks (profit-taking likely), while maintaining a bullish outlook."

Separately, there has been a renewed buying interest in defence counters after Prime Minister Narendra Modi emphasised the need for greater military self-reliance. In his first address to the nation after Operation Sindoor, Modi warned Pakistan that India will not succumb to nuclear blackmail. He described Operation Sindoor as India's new policy against terrorism and an unwavering pledge for justice.

Paras Defence 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 57.05 per cent stake in the company.