Multibagger penny stock below Rs 70 with Rs 3,610 million order book: This cable manufacturing company reports a 270 jump in net profit!

The stock gave multibagger returns of 180 per cent in just 1 year, 890 per cent in 3 years and a whopping 4,800 per cent in a decade.

Paramount Communications Limited announced its stellar Quarterly Results and half-yearly results for the fiscal year 2024 with robust order book. Here are the details:

Results: According to the quarterly results, the net sales increased by 28.6 per cent to Rs 210.54 crore and the net profit increased by 107 per cent to Rs 14.53 crore in Q2FY24 compared to Q2FY23. According to the half-yearly results, the net sales increased by 21.3 per cent to Rs 420.17 crore and the net profit increased by 270 per cent to Rs 28.12 crore in H1FY24 compared to H1FY23. According to its annual results, the net sales increased by 37 per cent to Rs 796 crore and net profit skyrocketed by 500 per cent to Rs 48 crore in FY23 compared to FY22.

Order book: As of 30th September 2023, Paramount Communications has a strong diversified order book worth Rs 3,610 million providing strong revenue visibility. Paramount Communications Ltd.'s order book comprises of power orders valued at Rs 2,060 million, railways order worth Rs 860 million, telecom orders worth Rs 100 million, house wire orders worth Rs 80 million, export sales orders worth Rs 390 million, EPC orders worth Rs 70 million and other orders worth Rs 70 million.

Paramount has acquired Valens Technologies, a company specializing in the production of HDPE pipes, for Rs 19.79 million. This acquisition is expected to expand Paramount's reach in the EPC services sector. Impressively, Valens Technologies turnover for the financial year concluding on March 31, 2023, amounted to a substantial Rs 28,07,62,401 which is from the manufacturing of HDPE pipes. This robust financial performance underscores the company's strong standing in its industry.

Paramount Communications Ltd is engaged in the manufacturing of wires and cables comprising of power cables, telecom cables, railway cables and specialised cables. The company has a market cap of over Rs 1,500 crore and has delivered good profit growth of 42.5 per cent CAGR over the last 5 years.

On Wednesday, shares of Paramount Communications Ltd hit 5 per cent upper circuit to Rs 65.75 per share from its previous closing of Rs 62.62 per share. The stock’s 52-week high is Rs 76.21 per share and its 52-week low of Rs 20.25 per share.

The shares of the company have an ROE of 21.2 per cent and a ROCE of 15 per cent. The stock gave multibagger returns of 180 per cent in just 1 year, 890 per cent in 3 years and a whopping 4,800 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.