1:2 Split + Rs 0.50 Dividend Declared: But Why Is This Defence Stock Under Pressure?

Providing a full range of in-house designed, developed, and manufactured (IDDM) products and solutions for the defence and space industries, Paras Defence and Space Technologies Ltd. is a leading Indian defence engineering company. Optics & Optronic Systems and Defence Engineering, which encompasses Defence Electronics, Electromagnetic Pulse (EMP) Protection Solutions, and Heavy Engineering, are the firm's two main verticals. Additionally, Paras is the only Indian business in the Asia-Pacific area creating and producing optical periscopes for use in submarine applications. The company exports to nations like Israel, Europe, the United States, and South Korea and serves well-known customers like the Ministry of Defence, DRDO, ISRO, BEL, L&T, and Ordnance Factories.

Paras Defence and Space Technologies Dividend

The Board of Directors "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," said the company in a stock exchange filing.

Paras Defence and Space Technologies Stock Split

The Board of Directors considered and approved "the 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, subject to shareholders' approval. The record date for the purpose of above sub-division/ split of equity shares shall be decided after obtaining approval for sub-division/split from the shareholders through postal ballot electronic voting process and will be intimated in due course," Paras Defence confirmed in a regulatory filing.

Paras Defence News

On Tuesday, Paras Defence and Space Technologies Ltd. established a strategic partnership with HevenDrones Israel, a stand-alone subsidiary of Heven, a multinational corporation headquartered in the United States and known for its mission-specific, autonomous, hydrogen-powered drones. With long-term goals to reach international markets, the joint venture (JV) will create a new company in India to develop, produce, and distribute next-generation drone systems specifically suited to India's defence and homeland security environment.

"India is a priority market for drone deployment at scale, and HevenDrones' combat-tested portfolio provides a strategic edge," said Munjal Sharad Shah, Managing Director, Paras Defence and Space Technologies Ltd. "This JV enables us to deliver world-class Made in India drone systems for local and global markets."

"This collaboration marks a significant milestone in our roadmap as we work to ensure an allied global business footprint," said Heven CEO Bentzion Levinson. "Paras Defence brings unmatched engineering capabilities, manufacturing infrastructure and deep knowledge of India's defence ecosystem. Together, we are contributing to the Atmanirbhar Bharat mission and setting a new benchmark in performance-driven UAV solutions for global markets."

Paras Defence Q4 Results

For the quarter ending March 31, 2025 (Q4 FY25), Paras Defence and Space Technologies reported a consolidated net profit of Rs 19.72 crore, up 97.79% year-on-year (YoY) from the Rs 9.97 crore profit recorded in the same period last year. Revenue from operations was Rs 108.23 crore, a 35.8% growth over the Rs 79.69 crore recorded during the same period of the previous fiscal year. While margins increased by over 10 percentage points to 26.2% from 15.6%, Paras Defence's earnings before interest, tax, depreciation, and amortization (EBITDA) jumped to Rs 28.3 crore in Q4FY25 from Rs 3.4 crore in Q4FY24.

Paras Defence Share Price Target

"Paras Defence is currently underperforming, trading below key resistance zones and showing signs of weakness. The RSI is on the lower side, and price action has been forming lower highs and lower lows-a bearish pattern. Unless the stock breaks above ₹1420 with volume support, it is likely to remain under pressure. Support lies near ₹1320, and a breach below this level could lead to further downside. Caution is advised, and traders should avoid fresh long positions until there is a confirmed reversal. The short-term trend remains negative," commented Riyank Arora - Technical Analyst - Mehta Equities Limited.

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