Paras Defence Rallies After Fresh Battle Tank Order, But SEBI Analyst Warns Of Near-Term Consolidation

Shares of Paras Defence and Space Technologies rose 3.5% on Friday after the company said it had received a ₹26.6-crore order from Opto Electronics Factory, a unit of India Optel Ltd under the Ministry of Defence.

The contract involves supplying additional quantities of Electronic Control Systems used in Thermal Imaging Fire Control Systems (TIFCS) for battle tank applications. 

Paras Defence said the order will be executed between December 2025 and September 2026. With this addition, the company's ongoing TIFCS supply contracts now total about ₹141.63 crore, up from ₹115.03 crore earlier.

Defence Sector In Focus

The rally in Paras Defence comes as defence stocks are in focus. A U.S. delegation is set to visit India next week to discuss a possible $4 billion deal for six more P-8I maritime patrol aircraft. 

Meanwhile, Hindustan Aeronautics has taken delivery of a third GE-404 engine from the U.S. for its LCA Mark-1A fighter jet programme, with more engines scheduled to arrive this year.

Analyst View

SEBI-registered analyst Sameer Pande said Paras Defence remains a key private player in India's defence and space sector, supported by strong fundamentals and international order wins. 

However, he flagged signs of near-term consolidation after the stock's sharp rally and recent 1:2 split.

Pande noted that the 20-day Exponential Moving Average (EMA) is around ₹672, with the stock trading close to that level, signaling a neutral to mildly bearish trend on daily charts. On shorter three-hour frames, the 20EMA is still trending downward, confirming a bearish bias.

He added that the Supertrend indicator is around ₹718, showing mixed momentum, while Volume Weighted Average Price (VWAP) analysis places the current price near ₹690 - above short-term averages like 5D and 10D VWAP but below longer-term VWAPs (20D, 50D, 100D). 

This indicates near-term strength but persistent selling pressure on broader horizons.

On the weekly chart, Pande said the stock has strong support in the ₹620–580 zone, with resistance at ₹770–800. He described the short-term outlook as neutral to mildly bearish, the medium-term outlook as consolidative, and the long-term outlook as positive, given the company's solid fundamentals.

What Is The Retail Mood?

On Stocktwits, retail sentiment was 'bullish' amid 'normal' message volume, placing among the most trending stocks on the platform. 

Paras Defence's stock has risen 35% so far in 2025.

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