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Paras Defence Shares Surge Following Stock Split Announcement and Strong Financial Results

Paras Defence Shares Surge Following Stock Split Announcement and Strong Financial Results

The primary objective of a stock split is to make a company's shares more affordable and increase their market liquidity. When a company's stock splits, the total number of shares increases while the per-share price decreases, making it easier for smaller investors to buy them.

Paras Defence and Space Technologies Limited, a well-known company in the defense sector, performed remarkably well in the stock market on Friday. The company's shares saw a surge of up to 10 percent in a single day, which seemed to fill investors' pockets. This surge is believed to be due to the recently announced stock split by the company.

Company conducted a stock split in a 1:2 ratio

Paras Defence has split its shares in a 1:2 ratio. This means that where one share was previously priced at a face value of ₹10, it has now been divided into two parts, and the face value of each new share has been set at ₹5. This decision has increased the number of shares, but the price of each share has halved, making them more affordable.

Record Date and Important Information for Investors

The company had set July 4, 2025, as the record date for the stock split. This means that only investors who held Paras Defence shares until the end of July 3 would be eligible to benefit from the stock split. Those who buy shares after this date will not be eligible for this benefit.

Due to this record date, a significant buying spree was observed among investors until July 3, and on July 4, the share prices jumped by 10 percent.

Why Companies Conduct Stock Splits

The purpose of a stock split is to reduce the price of shares by dividing them into smaller parts, making them more accessible to common investors. This increases the liquidity of shares, meaning their trading in the market, and opens up investment opportunities in the company's shares.

The special thing is that a stock split does not change the total value of the company or the total holdings of investors; it just increases the number of shares, and their unit value decreases.

Disclosure on Technical Cooperation with Israel

In a conversation with a business channel last month, Amit Mahajan, an officer of the company, stated that Paras Defence's ongoing cooperation with Israel is mainly focused on technology transfer. He clarified that the company's exports to Israel are very limited, accounting for only 5 percent of the total trade.

He also said that a delay of a few weeks is possible in technology transfer, but it will not have any negative impact on the supply chain or projects.

75 Percent Growth in Six Months

Paras Defence shares have seen a rise of about 75 percent in the last six months. This outstanding performance has placed this stock in the multi-bagger category in the market.

Where the price of this share was around ₹950 in January 2025, by the end of June, it started trading above ₹1600.

At the close of the market on Thursday, the price of this share was ₹1692.20, and on Friday, it rose further with a 10 percent increase.

Strong Results in the Fourth Quarter

The company presented excellent results in the fourth quarter of fiscal year 2025.

The company's net profit nearly doubled to ₹19.7 crore

Revenue increased by 35.8 percent and was recorded at ₹108.2 crore

These b results have increased investor confidence, and as a result, a continuous increase is being seen in the share.

Impact of Growing Demand in the Defense Sector

The government is continuously introducing new policies and schemes to promote self-reliance in the defense sector in India. In such a situation, domestic companies like Paras Defence appear to be benefiting from it.

The role of Paras Defence in the development of indigenous technology and modern defense systems is continuously increasing, due to which investors see great opportunities in the company's future.

Investor Interest Has Been Consistent for a Long Time

Paras Defence made its debut in the stock market in September 2021 and has been a favorite share of investors ever since. Due to the company's technology-based working style, deepening relationships in the government and private sectors, and new projects, a constant positive sentiment has been maintained in the market regarding this stock.

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