Debt-free in FY25 & Rs 555.80 crore order book: Multibagger penny stock under Rs 90; company reports 74 per cent jump in PAT, Rs 400 crore fundraise & repaid the entire outstanding dues of SBI
Over a decade, the stock has soared from Rs 3.10 per share to an intraday high of Rs 86.45 per share, achieving multibagger returns of 2,689 per cent.
On Friday, shares of Paramount Communications Ltd gained 3.37 per cent to an intraday high of Rs 86.45 per share from its previous closing of Rs 83.63 per share. The stock’s 52-week high of Rs 116.70 and its 52-week low of Rs 47.29.
Paramount Communications Ltd produces a variety of wires and cables, including power cables, telecom cables, railway cables, and specialised cables. The company boasts a substantial client base, including esteemed organisations 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 (Q1FY25) and annual results (FY24) for the fiscal year 2024. According to quarterly results, the net sales increased by 52.5 per cent to Rs 321.06 crore, operating increased by 61.6 per cent to Rs 29.91 crore and profit after tax (PAT) increased by 74.1 per cent to Rs 25.30 crore in Q1FY25 compared to Q1FY25 while in its annual results, the net sales increased by 32.7 per cent to Rs 1,078.56 crore, profit before tax (PBT) increased by 51.5 per cent to Rs 97.26 crore and profit after tax (PAT) increased by 79.3 per cent to Rs 85.63 crore in FY24 compared to FY23.
The company proposes to increase its authorized share capital from Rs 80 crore to Rs 90 crore by raising the number of equity shares from 35 crore to 40 crore, each of Rs 2 value, while retaining the 10 lakh redeemable preference shares of Rs 100 each. Additionally, it plans to raise up to Rs 400 crore through issuance of various securities, including equity shares, convertible debentures, and non-convertible debentures, subject to regulatory approvals and shareholder consent at the upcoming AGM on September 19, 2024.
The company fully settled all outstanding debts owed to the State Bank of India, which were subsequently acquired by Invent Assets Securitisation & Reconstruction Private Limited (Invent) under the Invent/1617/SBI/S79Trust. As a result, neither Paramount Communications Limited nor its guarantors have any further obligations to Invent related to these debts. Furthermore, Paramount Communications Limited has fully repaid all outstanding amounts owed directly to Invent, with no remaining debts as of the date of this notification.
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The company boasts a strong order book of Rs 555.80 crore and reports strong performance across all product categories, particularly power and railway cables. Export volumes remain consistent with FY23. Increased production is leading to economies of scale and improved profitability. The company maintains a healthy balance sheet with a debt-equity ratio of 0.16 and a current ratio of 3.40. They are on track to become debt-free in FY25 after fully repaying the Rs 86.25 crore debt.
In June 2024, FIIs bought 3,81,010 shares and increased their stake to 7.10 per cent compared to 6.98 per cent in March 2024. The company's shares have an ROE of 20 per cent and an ROCE of 16 per cent. The stock gave multibagger returns of 540 per cent in just 2 years and a whopping 720 per cent in 5 years. Over a decade, the stock has soared from Rs 3.10 per share to an intraday high of Rs 86.45 per share, achieving multibagger returns of 2,689 per cent. Investors should keep an eye on this cable manufacturing stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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