Latest news with #AnishMehta
News18
20-05-2025
- Business
- News18
Defence Stocks Extend Selloff Led By Shipyard Firms, Paras Defence Sinks 5% On Stake Sale
Last Updated: Defence-related stocks witnessed a significant decline on May 20, marking their second straight session of losses; What should investors do? Defence Stocks Decline: Defence-related stocks witnessed a significant decline on May 20, marking their second straight session of losses. The pullback came as investors booked profits after a sharp rally driven by optimism surrounding fresh defence orders and the success of Operation Sindoor. Shipyard and Defence Firm Stocks See Sharp Declines Shares of Cochin Shipyard, ideaForge Technology, Garden Reach Shipbuilders & Engineers (GRSE), and other defence-linked firms fell sharply on Tuesday. Cochin Shipyard dropped as much as 6.9% to Rs 1,847.60 on the BSE, while ideaForge lost 6.1% to Rs 536.25. GRSE declined 5.1% to Rs 2,356.05, and Mazagon Dock Shipbuilders shed 3.1% to Rs 3,303.20. These losses came on the heels of a weak session on Monday, when stocks like Cochin Shipyard, Mazagon Dock, GRSE, and Hindustan Aeronautics Ltd (HAL) had already retreated up to 4%. Rally Loses Steam After Record Gains Last week's massive surge had been fuelled by investor enthusiasm for India's expanding defence production and export prospects. Between May 9 and 17, Cochin Shipyard and GRSE jumped 41% and 40% respectively, while ideaForge soared 56%. HAL also rose 16% over the same period. However, the current correction suggests that valuations may have run ahead of fundamentals, prompting traders to lock in gains. Paras Defence Slumps After Promoter Stake Sale Paras Defence & Space Technologies fell nearly 5% after its promoters offloaded a 3.3% stake in the company through bulk deals. This comes after the stock had rallied around 55% over the past month. As per NSE data, promoter Sharad Virji Shah sold 9 lakh shares at Rs 1,682.87 apiece. Anish Mehta and Kaajal Harsh Bhansali each sold 2.17 lakh shares at Rs 1,664.62 and Rs 1,662.62, respectively. In total, the promoters sold 13.34 lakh shares. Promoters held a 57.05% stake in the company as of March 2025, with the remaining 42.95% owned by public shareholders. Operation Sindoor Sparked the Surge The recent rally had been driven by the Indian military's showcase of domestic missile and drone technology under 'Operation Sindoor." Between May 9 and 17, the sector added around ₹1.8 lakh crore in market capitalisation, on hopes of large upcoming defence contracts. Antique Stock Broking said it expects significant orders in FY26–27, including six submarines under Project 75(I), three Kalvari-class submarines, P-17B frigates, next-gen corvettes, and smaller naval vessels. Caution on Valuations, But Long-Term Outlook Positive Despite the near-term volatility, analysts remain optimistic about the long-term prospects of the defence sector. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, cautioned investors about rich valuations, stating, 'Even though the sector has strong medium-to-long-term potential, some profit booking is justified given the recent surge." Antique Stock Broking projects that the combined order books of Cochin Shipyard, GRSE, and Mazagon Dock could more than triple by FY27. The brokerage maintains a 'buy' rating on GRSE and Mazagon Dock, while assigning a 'hold' rating to Cochin Shipyard due to uncertainty around the timeline and scale of the proposed Indigenous Aircraft Carrier II (IAC-II) project. Disclaimer:Disclaimer: The views and investment tips by experts in this report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions. First Published: May 20, 2025, 12:19 IST
Mint
20-05-2025
- Business
- Mint
Paras Defence share price falls over 5% after three promoters sell stakes via bulk deals. Do you own?
Paras Defence share price fell as much as 5 per cent in Tuesday's trading session after promoters were seen trimming stakes in the defence manufacturer via bulk deals on Monday. At 9:50 am, Paras Defence stock touched an intraday low to ₹ 1,620.50 on National Stock Exchange (NSE) on May 20. On Monday, three promoters of Paras Defence & Space Technologies Ltd. — Sharad Virji Shah, Anish Hemant Mehta, and Kaajal Harsh Bhansali — offloaded a portion of their holdings through block deals. As per available data, Sharad Virji Shah sold 9 lakh shares at ₹ 1,682.87 each, while Anish Mehta and Kaajal Bhansali each sold 2.17 lakh shares at ₹ 1,664.62 per share. The promoters of the company collectively sold 13.34 lakh shares, which represents 5.8% of their total holdings and 3.3% of the company's total outstanding shares. As of the March quarter, the promoters of Paras Defence held a 57.05% stake in the company. Within this, Sharad Shah owned 18.05%, while both Anish Mehta and Kaajal Bhansali each held a 3.53% stake. The defence manufacturer launched its IPO in September 2021 at an issue price of ₹ 175 per share. On Monday, the stock closed at ₹ 1,707.70, after reaching an all-time high of ₹ 1,943.60 during the day. Indian defence stocks have recently drawn significant attention, especially after Operation Sindoor showcased the country's robust domestic defence manufacturing capabilities. 'The Nifty India Defence Index has surged over 50% since February 2025, recovering from a previous 33% correction, with a 9% gain in May alone. Despite the broad rally, only six stocks have surpassed their previous highs, while others remain below peak levels. The sector is seen as a promising long-term opportunity, backed by rising defence budgets, growing export interest, and sustained policy focus under the Make in India and Atmanirbhar Bharat initiatives,' said Siddharth Bhamre - Head of Research, Asit C Mehta Investment Intermediates Ltd.
