Multibagger cable stock at Rs 81 with Rs 495.16 crore order book: Company receives trading approval from the exchanges for 17,50,000 equity shares on preferential basis

The stock gave multibagger returns of 130 per cent from its 52-week low of Rs 34.07 and a whopping 600 per cent in 3 years.

On Friday, shares of Paramount Communications Ltd gained 0.15 per cent to Rs 78.42 per share from its previous closing of Rs 78.30 with an intraday high of Rs 80.55 and an intraday low of Rs 76.55. The stock’s 52-week high is Rs 116.70 and its 52-week low is Rs 34.07.

The company has received approval from the stock exchanges to list 5,00,000 new equity shares. Each share has a face value of Rs 2 and was issued at a premium of Rs 19.57, bringing the total issue price to Rs 21.57 per share. These shares were issued to non-promoters on a preferential basis under the conversion of warrants. The distinctive numbers for these shares are from 302934871 to 303434870. Trading of these shares will commence on Monday, June 3, 2024.

In a separate announcement, the company also informed about receiving approval to list another set of equity shares. This tranche consists of 12,50,000 shares with a face value of Rs 2 each. Similar to the previous tranche, these shares were issued at a premium (Rs 64.50) to non-promoters on a preferential basis due to warrant conversion. The total issue price per share is Rs 66.50 and the distinctive numbers for these shares range from 301684871 to 302934870. Trading for these shares will also begin on Monday, June 3, 2024.

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.

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The company announced stellar Quarterly Results (Q4FY24) and annual results (FY24) for the fiscal year 2024. According to quarterly results, the net sales increased by 56.3 per cent to Rs 326.1 crore, operating increased by 67.4 per cent to Rs 29.88 crore and profit after tax (PAT) increased by 113.7 per cent to Rs 29.49 crore in Q4FY24 compared to Q4FY23 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 boasts a strong order book of Rs 495.16 crore (Rs. 4951.6 million) 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 (Rs 862.5 million) ARC debt.

The company's shares exhibit an ROE of 20 per cent and an ROCE of 15 per cent. The stock gave multibagger returns of 130 per cent from its 52-week low of Rs 34.07 and a whopping 600 per cent in 3 years. Over a decade, the stock has soared from Rs 2.58 per share to an intraday high of Rs 78.42 per share, achieving multibagger returns of 2,940 per cent. Investors should keep an eye on this cable manufacturing stock.

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