Heavy buying witnessed: Multibagger penny stock hit 5 per cent upper circuit with robust order book of Rs 361 crore & FIIs increase stake!

The stock gave multibagger returns of 135 per cent in just 1 year, 945 per cent in 3 years and a whopping 5,600 per cent in a decade.

Today, shares of Paramount Communications Ltd were locked in 5 per cent to Rs 96.83 per share from its previous closing of Rs 92.22. The stock’s 52-week high is Rs 100.99 and its 52-week low is Rs 28.

Paramount Communications Ltd manufactures wires and cables comprising of power cables, telecom cables, railway cables and specialised cables. The company have handsome numbers of clients, a few of them are 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, etc.  

In the recent Extra Ordinary General Meeting (EGM), Paramount Communications Ltd. increased its authorized share capital from Rs 70 crore to Rs 80 crore by adding Rs 10 crore through the issuance of 5 crore new equity shares valued at Rs 2 each. This expansion, approved through an Ordinary Resolution, fortifies the company's financial capacity for future growth while maintaining the existing preference shares.

The Board of Directors also resolved to issue equity shares to non-promoters through a preferential allotment, pending special resolution approval from shareholders and clearance from regulatory bodies, including SEBI and Stock Exchanges. Pursuing a dual strategy, the company aims to issue new shares at Rs. 66.50 each to enhance capital and broaden its shareholder base, with Anand Rathi Global Finance Limited and VLS Finance Limited among the 78 entities set to receive allocated shares.

As of November 2023, the shareholding distribution indicates a rise in the stake held by Foreign Institutional Investors (FIIs) in the company. During the period from October 2023 to November 2023, FIIs acquired an additional 1,71,80,366 shares, causing their ownership to surge from 0.52 per cent to 7.61 per cent.

These exceptional results are underpinned by a strong order book of Rs 361 crore as of September 30, 2023. The portfolio is well-diversified, spanning power, railway, telecom, house wire, export, and EPC projects, providing clear visibility for continued growth.

The shares of the company have an ROE of 21.2 per cent and a ROCE of 14 per cent. The stock gave multibagger returns of 135 per cent in just 1 year, 945 per cent in 3 years and a whopping 5,600 per cent in a decade. Investors should keep an eye on this Small-Cap cable manufacturing stock.