1:2 Split + Rs 0.50 Dividend FIRST EVER By Multibagger Defence Stock; BSE Smallcap Up 670% In 4 Yrs; Buy Time?

Stock Split, Dividend Ahead: A listed aerospace and defence company is preparing to give investors double rewards in the form of stock split and dividends. Trading as a small-cap on BSE, this defence company has a return on equity at 12.22%, while its price-to-equity ratio is high at 93.08x. The stock trades below the Rs 1,350 level. It's neither Hindustan Aeronautics (HAL) nor Bharat Electronics (BEL), who are the two defence giants of India.

Then who? This is a 40-year-old defence and space solutions provider, Paras Defence & Space Technologies, a key player in India's Defence and Space landscape.

Paras Defence & Space Technologies Stock Split:

This small-cap player has announced a stock split of 1 (one) equity share of the face value of Rs. 10/- (Rupees Ten only) each, into 2 (Two) equity shares of the face value of Rs. 5/- (Rupees Five only) each, fully paid-up. The ratio is of 1:2.

The reason behind the stock split is to make the shares more affordable and attractive to invest, thereby encouraging greater participation of retail investors and also enhancing the liquidity of the Company's shares in the market.

Paras Defence aims to complete the stock splot action within 2 months from the date of approval by the members of the Company.

What is noteworthy is that this will be Paras Defence & Space Company's first ever stock split.

Paras Defence & Space Technologies Dividend:

Additionally, the company has declared a final dividend of Rs. 0.50/- per equity share of Rs. 5/- each for the financial year ending March 31, 2025 (post the completion of the sub-division/ split of equity shares).

It said, the date of the Annual General Meeting (AGM) for the FY 2024-25, the record date for the purpose of the final dividend and the date from which dividend, if approved by the shareholders, will be paid, shall be communicated in due course.

This is also Paras Defence's first-ever dividend.

Paras Defence Share Price:

Last week, on Friday, the stock price closed at Rs 1347.80 apiece, down by 1.3% on BSE. The company's market cap is at Rs 5,430.78 crore. Surprisingly, Paras Defence has outperformed giants like HAL and BEL in YTD trading session. So far in 2025, Paras Defence has gained by a whopping 34%, while HAL and BEL are up by 6-8%.

Not just that, Paras Defence shares have skyrocketed by a whopping 670.17% from its IPO issue price of Rs 175. The company had launched its IPO from September 21 to 23rd, and was one of the best performing IPOs of that year with mind-boggling subscription of 304.26x.

Paras Defence and Space Technologies Recommendation:

The revenue outlook for Paras Defence is positive, with estimation of 40-50% growth rate for FY26, while its margins are also expected to improve. Nirmal Bang's note said that the projected CAGR for revenue, EBITDA, and PAT is strong for Paras Defence at 26%, 26%, and 25% for FY25-FY27 respectively. Accordingly, the brokerage has recommended HOLD, but raised target price to Rs 1,517.

About Paras Defence & Space Technologies:

Paras Defence & Space Technologies has a state-of-the-art manufacturing setup with a 600+ workforce and the capability to offer turnkey solutions from design to commissioning of small to large systems. Its focus is on technology development and R&D distinguishes us as a true IDDM company in the Indian defence industry.