6,975 per cent returns & FIIs bought 1,71,80,366 shares: Cable manufacturing stock hit upper circuit after the company reports 65 per cent jump in net profit!

The stock gave multibagger returns of over 200 per cent within just 1 year and 1,130 per cent over three years.

On Friday, shares of Paramount Communications Ltd hit a 5 per cent upper circuit to an intraday high of Rs 108.50 per share from its previous closing of Rs 102.95. At the closing bell, shares of the company were trading at Rs 106.15 per share, up 3.11 per cent. The stock’s 52-week high is Rs 116.70 and its 52-week low is Rs 28.  

Paramount Communications Ltd produces a variety of wires and cables, including power cables, telecom cables, railway cables, and specialized cables. The company boasts a substantial client base, including esteemed organizations such as Larsen & Toubro, Steel Authority of India (SAIL), BSES, Bharat Heavy Electrical Ltd, Power Grid Corporation, BSNL, Tata Steel, Alcatel Lucent Enterprises, ISRO, Indian Railways, Indian Oil, NTPC, among others.

The company announced stellar Quarterly Results (Q3FY24) and nine-month results (9MFY24) for the fiscal year 2024. According to quarterly results, the net sales increased by 30.3 per cent to Rs 284.25 crore, operating increased by 35.5 per cent to Rs 25.66 crore and profit after tax (PAT) increased by 53.8 per cent to Rs 22.03 crore in Q3FY24 compared to Q3FY23 while in its nine-month results, the net sales increased by 25.7 per cent to Rs 747.23 crore, profit before tax (PBT) increased by 65.1 per cent to Rs 56.1 crore and profit after tax (PAT) increased by 65 per cent to Rs 56 crore in 9MFY24 compared to 9MFY23.

The board of directors, having received approvals from both the company's members and stock exchanges, allotted 2,03,74,980 equity shares at Rs. 66.50 each to pre-determined non-promoter entities, raising a total of Rs. 135.49 crores. Anand Rathi Global Finance Limited was allocated 15,00,000 shares, VLS Finance Limited was allocated 22,55,600 shares and the rest of the shares were allocated to 62 other investors.

By November 2023, there was an increase in the shareholding of Foreign Institutional Investors (FIIs) in the company. Between October and November 2023, FIIs acquired an additional 1,71,80,366 shares, resulting in their ownership rising from 0.52 per cent to 7.61 per cent.

These remarkable outcomes are supported by a robust order book totalling Rs 361 crore as of September 30, 2023. The portfolio is diversified across various sectors including power, railway, telecom, house wire, export, and EPC projects.

The company's shares exhibit a Return on Equity (ROE) of 21.2 per cent and a Return on Capital Employed (ROCE) of 14 per cent. The stock gave multibagger returns of over 200 per cent within just 1 year and 1,130 per cent over three years. Over a decade, the stock has soared from Rs 1.50 per share to Rs 106.15 per share, achieving multibagger returns of 6,975 per cent. Investors should keep an eye on this cable manufacturing stock.

Disclaimer: The article is for informational purposes only and not investment advice.