Paras Defence shares jump 13% amid West Asia tensions; co announces semiconductor foray Shares of Paras Defence and Space Technologies surged as much as 13% on Monday, March 2, amid heightened geopolitical tensions in West Asia that have escalated into a broader regional conflict. The rise in stock prices coincided with increased investor interest in defence-related stocks, driven by concerns over regional instability and the potential for higher demand for military equipment and its components. The latest escalation in tensions involved exchanges between Israel and Hezbollah following reports of retaliatory strikes linked to Iran's Supreme Leader. This development has amplified fears of further conflict, prompting investors to seek opportunities in sectors perceived as benefiting from such scenarios. Defence stocks often experience heightened activity during periods of geopolitical uncertainty, as demand for critical military technologies and infrastructure is expected to rise. In a separate development, Paras Defence announced its entry into the semiconductor industry by establishing a new subsidiary, Paras Semiconductors Pvt Ltd. The company will hold a 70% equity stake in the unit, which plans to set up an advanced facility specializing in heterogeneous packaging and 3D packaging OSAT. OSAT, or outsourced semiconductor assembly and testing, is a key segment of the chip manufacturing process. The subsidiary aims to focus on applications in artificial intelligence, high-performance computing, networking, and data centres. The combination of geopolitical factors supporting defence stocks and the company's strategic move into high-tech semiconductor packaging has kept the stock in focus.#hezbollah #west_asia #paras_defence #paras_defence_and_space_technologies #paras_semi_conductors_pvt_ltd
Defense stocks in India, including Paras Defence, Ideaforge Technology Ltd, and Zen Technologies Ltd, saw significant gains today, with some rising as much as 11% amid heightened global demand for unmanned aerial systems. The surge follows escalating tensions in the Middle East, where drones and missiles have played a critical role in recent conflicts, boosting investor confidence in the sector. Paras Defence, a manufacturer of military and tactical drones, climbed 10.90% to reach a high of Rs 750 per share, marking a 19% increase over four trading sessions. The company also provides drone management services, positioning it as a key player in the growing defense technology landscape. Its recent performance reflects broader optimism about the sector’s potential, driven by both domestic and international demand. Ideaforge Technology Ltd rose 4.56% to Rs 463.50, with the company citing improved momentum in India’s drone ecosystem during its Q3 earnings presentation. The firm highlighted the impact of the conclusion of Emergency Procurement Cycle 6 (EP6) and contract awards, which are expected to drive long-term growth. CEO Ankit Mehta noted that these developments have set the industry on an upward trajectory. Zen Technologies Ltd also gained 4.76% to Rs 1,409.30, as drones increasingly become essential tools for counter-insurgency and counter-terrorism operations. The company emphasized that recent global conflicts have accelerated the need for robust domestic capabilities, with India’s procurement efforts under EP6 and decentralized command-level purchases further fueling demand. The Middle East conflict has underscored the strategic importance of drones, with Iran’s use of unmanned systems and missiles against Israeli and U.S. targets in the region.#middle_east #paras_defence #ideaforge_technology_ltd #zen_technologies_ltd #emergency_procurement_cycle_6
