Paras Defence and Space Technologies Limited's share price surged nearly 10% on Thursday, March 20, 2025, after securing a ₹142.31 crores contract from the Defence Research and Development Organisation (DRDO). The order involves the development of a laser source module and its integration with the beam control system on a mobile platform.
The project falls under a high-power laser system contract, which is designed for anti-drone and anti-missile applications. The company has stated that the project is expected to be completed within 24 months.
Paras Defence share price movement
Paras Defence's share price opened at an intraday low of ₹978.35 per share on the Bombay Stock Exchange (BSE). The stock later reached an intraday high of ₹1,046.95 per share. The latest developments have contributed to increased investor interest in the stock.
Market analysts believe that the recent order win has strengthened investor sentiment. The company has been receiving significant contracts, which could support its financial growth and operational expansion.
Paras Defence's expansion plans
In January, Paras Defence announced plans to invest ₹12,000 crores to establish India's first optics park in Maharashtra. The company signed a Memorandum of Understanding (MoU) with the state government at the World Economic Forum in Davos. The project is scheduled to commence in 2028 and will be executed in multiple phases until 2035.
This investment aims to create a technology hub for defence, space, automotive, semiconductor, and other critical industries. The company emphasised that the initiative aligns with India's 'Make in India' policy and aims to promote technological self-sufficiency. The Optics Park is expected to generate over 2,000 direct employment opportunities.
Stock performance and market outlook
Paras Defence share price has shown a strong uptrend over the past year. The stock has gained significant traction following multiple order wins and expansion plans. Analysts note that the recent surge in share price reflects growing confidence among investors in the company's future prospects.
Market experts suggest that Paras Defence is well-positioned to benefit from India's increasing defence expenditure. The government's focus on self-reliance in defence manufacturing is expected to create new opportunities for companies operating in the sector. Investors looking to invest in stocks related to defence may find Paras Defence an attractive option.
Market analysts have observed a breakout in Paras Defence's stock price. The stock has surpassed key moving averages, indicating bullish momentum. Some analysts predict a potential price target of ₹1,200 in the short-term.
Government initiatives supporting defence sector growth
India's push for self-reliance in defence manufacturing has resulted in increased contracts being awarded to domestic firms. The 'Make in India' initiative has inspired companies such as Paras Defence to improve their capabilities and foster domestic manufacturing.
The government has also introduced various policies to promote domestic defence companies. These measures include increased budget allocations, simplified procurement processes, and tax incentives. Investors who plan to invest in stocks in the defence sector may benefit from these policy-driven growth opportunities.
Future prospects for paras defence
Paras Defence is actively pursuing new contracts and expanding its manufacturing capabilities. The company's focus on research and development is expected to drive long-term growth. The recently secured DRDO contract further solidifies its position in the industry.
Analysts believe that the company's investments in advanced defence technologies could lead to sustained revenue growth. The development of India's first optics park is also expected to create new business opportunities.
Paras Defence's recent order win has positively impacted its share price, reflecting strong investor interest. The company's ongoing expansion plans and government-backed initiatives are expected to support its growth trajectory.
At 11:30 AM on Thursday, March 20, 2025, Paras Defence's shares were trading at ₹1,008.57 per share on the BSE.
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