Defence Stock: This Rs 700 Smallcap Turned Rs 74,000 To Rs 2.97 Lakh In 3 Years; PL Says Buy For Rs 880 TP

Paras Defence & Space Technologies has grabbed attention this month as leading brokerage Prabhudas Lilladher has recommended buying for a target price of Rs 1,080. There is a potential of 26% upside ahead in this small-cap defence stock. Although the start of 2024 has been broadly bearish with signals of buy-on-dips opportunity, Paras Defence has given multi-fold returns to its investors since listing in October 2021.

In less than 3 years of listing, Paras Defence's share price has turned over Rs 74,000 investment to a whopping more than Rs 2.97 lakh, better than traditional FDs.

Paras Defence launched its Rs 170.78 crore IPO between September 21 to 23rd of 2021. After subscribing by a massive 304.26 times, Paras Defence was listed on October 1, 2021. Its issue price was at Rs 175 apiece, and it witnessed a blockbuster listing.

On its listing day, the stock skyrocketed by 185% on BSE and 181.4% on NSE after the closing bell of October 1, 2021, compared to its issue price. That was massive gains in a defence stock during the listing.

But the big winners are those investors who bought a piece of Paras Defence during its IPO period. 1 bid lot for retail investors was 85 shares during the IPO, while the maximum bid was 13 lots which was 1,105 shares.

Let's suppose, a retail investor bought 5 lots in Paras Defence. He or she will receive 425 shares (5x85), and their investment value will be around Rs 74,375.

If these investors stayed invested up till now, then their gains will be a whopping Rs 2,97,521.25 at the current market price (425XRs 700.05).

On BSE, after market hours of April 10, Paras Defence's share price ended at Rs 700.05 apiece, marginally up with a market cap of Rs 2,730.20 crore.

The stock's 52-week high and low is of Rs 848 apiece and Rs 488.70 apiece respectively.

There is more upside ahead!

In its thematic report, Prabhudas Lilladher said, "PARAS DEFENCE The stock has corrected quite well and has taken support near 610 levels forming a double bottom formation on the daily chart, thereafter witnessing a pullback to improve the bias."

Prabhudas explained further that the e RSI has recovered from the oversold zone to indicate a trend reversal signaling a buy.

The brokerage added, "With the chart looking attractive, we suggest buying and accumulating the stock for an upside target of 760 and 820 levels in the coming days keeping the stop loss of 605 level."

Paras offers a wide range of Products & Solutions for Defence & Space Applications. With a focus on Defence & Space Sector, the company has five verticals in its business, namely Defence & Space Optics, Defence Electronics, Heavy Engineering, Electromagnetic Pulse Protection Solutions and Niche Technologies.

Paras has a state-of-the-art manufacturing setup with a 600+ workforce and has the capabilities to offer a Turnkey Solution from Design to Commissioning of Small to Large Systems.

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.