Paras Defence board to weigh stock split on April 30; financial results, dividend also on agenda

Paras Defence and Space Technologies is all set to consider a stock split during its board meeting scheduled for April 30, 2025. The agenda includes approval of audited financials for Q4 and FY25, a potential final dividend, and a proposal to subdivide its equity shares, the company said in a regulatory filing.

The board will take up the share split under Section 61 of the Companies Act, 2013, which allows companies to alter the structure of share capital with shareholder approval. The company, however, has not disclosed the proposed split ratio at this stage.

Stock up 40% YoY, technicals look supportive

Paras Defence shares have been on a steady upward climb, gaining nearly 40 per cent over the past year and rising 9 per cent in the last six months alone. In the past week, the stock has added 2.6 per cent.

From a technical perspective, the stock is trading above seven of its eight key simple moving averages (SMAs), signaling bullish momentum. However, it still remains marginally below its 200-day SMA—a level closely tracked by long-term investors. The 14-day Relative Strength Index (RSI) stands at 63.8, indicating neutral momentum with no signs of overbought or oversold conditions.

Capex boost with new arms manufacturing licence

Earlier this year, Paras Defence secured a lifetime-validity manufacturing licence from the Department for Promotion of Industry and Internal Trade (DPIIT) under the Arms Act, 1959. The licence allows the company to manufacture MK-46 and MK-48 belt-fed Light Machine Guns with an annual capacity of 6,000 units each.

This development is expected to enhance the company's defence production capabilities and contribute to its order pipeline in FY26 and beyond.

What a stock split could mean

If approved, a stock split could increase the liquidity of Paras Defence shares by reducing their market price per share, thereby making them more accessible to retail investors. It may also reflect management’s confidence in future earnings growth.

Analysts say the stock split news, coupled with strong fundamentals and a growing defence order book, could provide a fresh trigger for the stock in the coming months.