Paras Defence Stock Split: Here’s a comprehensive overview of the upcoming stock split at Paras Defence & Space Technologies Ltd, along with an analysis of its current business performance and future prospects.
📈 Paras Defence Stock Split & Dividend
- Split details: The Board approved a 1:2 stock split, converting each existing ₹10 share into two ₹5 shares, pending shareholder approval. The process is expected to be completed within two months of approval .
- Record date: Set for July 4, 2025, to determine shareholders eligible for the split .
- Purpose: The split aims to make shares more affordable and liquid, encouraging higher retail participation .
- First-ever dividend: Alongside the split, the company has recommended a final dividend of ₹0.50 per share (post-split) for FY25, marking its maiden dividend declaration .
🔎 Business Overview & Recent Developments
Core Business Verticals
- Optics & Optronic Systems (~27% of revenue):
- A rare Indian private firm manufacturing submarine periscopes, optics and space-grade imaging systems .
- Defence Engineering (~73% of revenue):
- Covers defence electronics, EMP protection, heavy engineering. EMP solutions face limited domestic competition .
R&D & Manufacturing Strength
- 40+ years of technical experience, backed by strong in‑house R&D and advanced manufacturing infrastructure .
- Focused on turnkey defence/space systems, with high precision and quality in production .
Key Contracts & Alliances
- Selected to develop MRI magnet tech under a MeitY‑led consortium—diversifying into medical tech .
- Obtained lifetime license for manufacturing MK‑46 and MK‑48 light machine guns (6,000 units/year) .
- Signed MoU with Israel’s HevenDrones to establish a JV for defence‑logistics drones .
✅ Strategic Takeaways
- Stock-split & dividend validate management’s intent to improve retail access and return capital to shareholders.
- Double-digit revenue and profit growth backed by strong order-book and operational leverage.
- Diversification into MRI, machine guns, and drones broadens the company’s product portfolio and reduces reliance on military optics alone.
- Robust R&D and defence pedigree position Paras as a key participant in the ‘Atmanirbhar Bharat’ defence narrative.
- Analysts bullish, forecasting significant upside over mid to long-term, underpinned by strong sector dynamics.
✍️ Conclusion-Paras Defence Stock split:
Paras Defence’s upcoming 1:2 stock split, paired with its maiden ₹0.50/share dividend, reflects both confidence in future growth and a push to widen its shareholder base. Supported by robust FY25 growth, expanding product offerings, strong export partnerships, and a fortified order pipeline, the company is well-positioned for sustainable long-term growth.
Near-term share price catalysts include the stock‑split execution, dividend payout, and successful execution of diversified projects (medical, machine guns, drones). Provided macro‑economic and defence budgets hold steady, Paras is geared to continue its upward momentum — although investors should stay alert for technical levels (₹1,750 breakout, ₹1,400 stop‑loss) and execution risks.
Final word: Paras Defence stands at a strategic inflection: a stronger balance sheet, broader product base, and greater accessibility for investors. If execution stays sharp, this could mark the beginning of its next leg up.
Disclaimer: Investments in Capital Market/Share Prices are subject to market fluctuations and are dependent on several factors. These predictions are based on the current market conditions and the future market expectations. Investors are advised to take into consideration all these factors before making any investment in Capital Market. This article should not be treated as Investment advisory and is for general Guidance & Educational purpose only. We keep revising our share price targets based on the latest information available with us. Please keep visiting our website regularly to keep yourself updated. News4You does not offer investment advice and does not encourage any action based on its content.
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