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Shares of Paras Defense fell 18.54%, when can there be a new purchase?

Highlights:

  • Paras Defense shares offered in IPO for just Rs 175
  • It was listed at Rs 475 on 1st October
  • The stock has given a return of 584 per cent in less than a month

AHMEDABAD: Paras Defence, one of the most talked about stocks of 2021, has been going through the lower circuit for four consecutive days after rocket-propelled grenades. The stock touched an all-time high of Rs 1,198 on October 22. Since then it has been on a steady decline. Looking at the chart, it has been in the lower circuit continuously since 22 October.

The stock was listed at Rs 492 on October 1 after the overwhelming response to the IPO. It seemed then that there was a constant only buyer circuit. After the listing in the shares of Paras Defense continued to rise up to Rs 659 till October 11. After that it saw a general decline.

Finally, on October 13, Paras Defense fell to Rs 595. Merchants also had a chance to buy it at that time. Since then, the stock has been witnessing a steady rise. Paras Defense which was at Rs 625 on 14th October reached its all time high of Rs 1198 on 22nd October. The stock has been declining steadily since hitting an all-time high. Its lower circuit also took place on 28 October. It was trading at Rs 976, down by Rs 51.35 from the previous close.

Travel from Rs 175 to Rs 1198

The IPO of Paras Defense came in September. The stock was offered at a price of Rs 175. It was listed on October 01 at a price of Rs 475. Thus, on the day of listing, it gave a good return of 171 per cent. From IPO price to all-time high, the stock has traveled from Rs 175 to Rs 1,198. In this way it has got a bumper return of 584 per cent in a single month.

At what level can an entry be made for fresh purchases?

No listed company in our country is involved in the same operation in which Paras Defense works. So it is difficult to compare it with any other company. However, some experts feel that the stock is too expensive. After the bumper listing, it is being bought in a big way. Those looking to re-enter Teva should wait a little longer. Once the stock price stabilizes, it can be considered for entry at the price at which it was listed.

Disclaimer: The above information is for information only, is not intended to be an advice to buy or sell any shares. Be sure to consult your financial advisor before making any investment.

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