Shares of Paras Defence and Space Technologies Ltd surged 8.29% to ₹1,238.55 on Tuesday, April 29, 2025, adding ₹94.80 from the previous close of ₹1,143.75. The stock touched a high of ₹1,249.90 during the session and was among the top gainers on NSE.
The rally in Paras Defence came alongside broader momentum seen in India’s defence sector stocks, including Data Patterns (India) Ltd, Hindustan Aeronautics Ltd (HAL), Bharat Electronics Ltd (BEL), and Bharat Dynamics Ltd (BDL). This surge is being attributed to continued optimism around the Indian government’s long-term defence spending plans.
Amid the evolving global geopolitical landscape, many nations—including Japan, Germany, and Spain—are increasing their defence budgets toward 3–5% of GDP. India, currently spending around 1.9%, may need to reallocate substantially more over the coming decades.
Speaking at an event hosted by Motilal Oswal Financial Services (MOFSL), Captain Vishal Kanwar, Managing Director at PwC Advisory India, said India must move toward a 4% defence spending target to meet national security and modernization requirements.
Kanwar noted a likely shift in capital expenditure allocation within the Indian armed forces, increasing from the current 22% to 40% by 2047, alongside a tenfold rise in R&D spending from 1% to 10% of the defence budget.
India’s aerospace sector is also accelerating, led by public sector giants HAL, BEL, and Mazagon Dock Shipbuilders. Kanwar highlighted the need for HAL to improve productivity and infrastructure to maintain its aerospace leadership. Private players such as Tata Group, Mahindra, Aequs, Dynamatic Technologies, and Bharat Forge were also acknowledged for their growing footprint in aerospace manufacturing via global collaborations.
At the time of reporting, Paras Defence had a market capitalization of ₹5,019 crore and a P/E ratio of 91.17.
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