BackParas Defence shares rise 32% in 8 sessions post-listing. Should you buy or hold?
Post-listing, Paras Defence share price has shot up from ₹475 per share levels to ₹626.85 apiece
PremiumParas Defence shares made a dream debut at Indian bourses. The defence stock listed at ₹475 at BSE and at ₹469 at NSE on 1st October 2021. Post-listing, Paras Defence share price has shot up from ₹475 per share levels to ₹626.85 per equity share levels — logging around 32 per cent rise from its listing price. However, for those who got Paras Defence shares via share allotment process, they have got around 260 per cent return on their investment as upper band of the issue price was ₹175 per share.
According to stock market experts, Paras Defence share price has hit its highest valuations and one should book profit at current levels. They advised investors to re-enter at around ₹500 levels for long-term time horizon.
Speaking on Paras Defence share; Ravi Singhal, Vice Chairman at GCL Securities said, "Paras Defence share has hit our given target of ₹620 to ₹630 and now we advise investors to exit at current levels. Paras Defence was expected to zoom further after listing as the defence stock had some potential for upside move due to the buzz in defence sector after some recent announcements made by the Government of India (GoI). At current levels, Paras Defence scrip has reached to its maximum valuation and from here heavy profit-booking is awaited. So, it's opportune for those who hold this defence counter to exit. Those who booked profit earlier and want to re-enter are advised to wait for the profit-booking and re-enter at around ₹500 per share levels maintaining stop loss at ₹460. In fact, fresh buyers can also initiate buying at ₹500 levels."
Highlighting the fundamentals that augurs well for Paras Defence shares; Santosh Meena, Head of Research, Swastika Investmart said, "Paras Defence and Space Technologies are primarily engaged in the designing, developing, manufacturing, and testing of a variety of defence and space engineering products and solutions. Eyeing the government's focus on the Space and Defense sector, it is expected that both the segments of the company are likely to be benefited. The "Make in India" campaign by the government to be self-reliant by 2027 will give a boost to the industry. The company has strong order book as well." These augur well for the stock in long-term, said Meena.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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