7,600 per cent multibagger returns & FIIs bought 1,71,80,366 shares: Back-to-back upper circuits in this small-cap stock with robust order book of Rs 361 crore – do you own it?

The stock has delivered impressive returns, multiplying by 200 per cent within just one year and by 1,200 per cent over three years.

Today, shares of Paramount Communications Ltd hit a 5 per cent upper circuit to Rs 115.57 per share from its previous closing of Rs 110.57. 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.

Paramount Communications Ltd. is gearing up for growth by expanding its capital base through two avenues: an authorized share capital increase of Rs 10 crore via new equity issuance, and a preferential allotment of shares to non-promoters at Rs 66.50 each. Additionally, the company has allotted over 17 lakh equity shares to non-promoter warrant holders who exercised their warrants at Rs 21.57 per warrant.

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, ensuring clear visibility for sustained growth.

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 has delivered impressive returns, multiplying by 200 per cent within just one year and by 1,200 per cent over three years. Over a decade, the stock has soared from Rs 1.50 per share to Rs 115.57 per share, achieving multibagger returns exceeding 7,600 per cent.

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