Back-to-back upper circuits & 52-week highs in this multibagger penny stock with Rs 361 crore order book; Board likely to announce fundraising – FIIs bought 1 crore shares!

The stock gave multibagger returns of 245 per cent in just 1 year, 945 per cent in 3 years and a whopping 6,260 per cent in a decade.

Today, shares of Paramount Communications Ltd hit a 5 per cent upper circuit to Rs 82.69 per share from its previous closing of Rs 78.76. The stock also made a new 52-week high of Rs 82.69 per share. Furthermore, in recent trading sessions, the stock has been hitting back-to-back upper circuits and 52-week highs.

Paramount Communications Limited has announced a meeting of its Board of Directors on December 18, 2023. This meeting will consider a proposal to raise funds through the issuance of securities, in accordance with relevant regulations and approvals. This potential fundraiser aims to bolster the company's financial position and potentially fuel future growth initiatives.

Paramount Communications Ltd is engaged in the manufacturing of wires and cables comprising power cables, telecom cables, railway cables and specialised cables. The company has a market cap of over Rs 2,000 crore and has delivered good profit growth of 50 per cent CAGR over the last 5 years.

Recently, Nexpact Ltd, a Foreign Institutional Investor, has acquired 1,00,00,000 shares, translating to a 3.58 per cent stake in the company, making it the largest FII shareholder.

Paramount Communications is experiencing a financial boom, with sales and profits skyrocketing across all timeframes. Q2FY24 saw a 28.6 per cent increase in net sales to Rs 210.54 crore while net profit doubled to Rs 14.53 crore compared to the same period last year. This momentum continued throughout the year, with H1FY24 net sales climbing 21.3 per cent and net profit tripling to Rs 28.12 crore.

FY23 was truly explosive, with net sales soaring 37 per cent to Rs 796 crore and net profit witnessing a staggering 500 per cent increase to Rs 48 crore. This remarkable performance is fuelled by a robust order book of Rs 361 crore as of September 30th, 2023. This diversified portfolio includes power, railway, and telecom orders, along with house wire, export sales, and EPC projects, offering clear visibility for future growth.

With such a strong foundation and diverse revenue streams, Paramount Communications is poised for continued success in the coming years. Buckle up, this financial rocket is just getting started!

The shares of the company have an ROE of 22 per cent and a ROCE of 15 per cent. The stock gave multibagger returns of 245 per cent in just 1 year, 945 per cent in 3 years and a whopping 6,260 per cent in a decade. Investors should keep an eye on this Small-Cap cable manufacturing stock.

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