Stock Jumps on Back of High-Power Laser System Contract for Anti-Drone & Anti-Missile Applications
Shares of Paras Defence and Space Technologies Ltd. soared 10% intraday on March 20 after the company announced it had secured a ₹142.31 crore order from the Defence Research and Development Organisation (DRDO). The stock hit an intraday high of ₹1,047.7 per share on the NSE, continuing its upward momentum for the third consecutive session.
Details of the DRDO Order
In an official exchange filing, Paras Defence confirmed receiving an order from CHESS (Centre for High Energy Systems & Sciences), DRDO, Ministry of Defence, Hyderabad.
- The project involves the development of a Laser Source Module and its integration with the Beam Control System (BCS) on a mobile platform.
- This is a critical component of a High-Power Laser System designed for Anti-Drone and Anti-Missile defense applications.
- The order is expected to be executed within 24 months, strengthening Paras Defence’s role in India’s growing defence technology sector.
Stock Market Reaction & Performance
- Paras Defence opened with a gap-up, registering an early gain of 2.22% before surging nearly 10% intraday.
- The stock has been on a rally for three straight sessions, gaining approximately 14% during this period.
- Investor sentiment toward defence and space technology stocks has been strengthening, particularly after recent global geopolitical developments.
Global Defence Spending Boost Fuels Optimism
The recent uptick in defence sector stocks comes amid global shifts in military spending. A key development includes:
- Germany’s Parliament approving an increase in its defence budget, signaling a greater emphasis on military modernization.
- This move has raised expectations for higher exports from Indian defence companies, as European nations look for cost-effective, cutting-edge solutions in the military and aerospace segments.
Paras Defence’s Position in India’s Defence Sector
Paras Defence is one of India’s leading players in the defence and space technology ecosystem, focusing on advanced solutions like:
- Electro-optical systems & high-energy laser technologies
- Space optics & mechanical systems for satellites
- Drone and anti-drone defence systems
With India prioritizing domestic defence production under the Atmanirbhar Bharat initiative, companies like Paras Defence stand to benefit from increasing government contracts and technology collaborations.
Strong Pipeline of Defence Projects
Paras Defence has been aggressively expanding its portfolio of high-tech defence systems, and this latest order from DRDO further strengthens its market positioning. The company’s focus on cutting-edge laser-based defense technologies aligns with global trends in next-generation warfare.
As the Indian defence sector continues to attract investor interest, Paras Defence’s stock remains a key player to watch in the military and aerospace technology space.
