Multibagger penny stock with Rs 361 crore order book: Board to allocate preferential issue of 2,25,24,980 shares to Anand Rathi Global Finance, VLS Finance and 76 others!

The stock gave multibagger returns of 200 per cent in just 1 year, 1,000 per cent in 3 years and a whopping 6,470 per cent in a decade.

Today, shares of Paramount Communications Ltd hit a 5 per cent upper circuit to Rs 86.75 per share from its previous closing of Rs 82.62. The stock’s 52-week high of Rs 86.80 its 52-week low is Rs 26.15. Furthermore, in recent trading sessions, the stock has been hitting back-to-back upper circuits.

Paramount Communications Ltd. is seeking a capital boost and wider shareholder base through a dual approach: issuing new shares at Rs. 66.50 apiece, pending shareholder approval, and increasing authorized capital from Rs 70 crore to Rs 80 crore, granting them flexibility for future issuances. This potential fundraiser aims to bolster the company's financial position and potentially fuel future growth initiatives.

Anand Rathi Global Finance Limited will be allocated 15,00,000 shares and VLS Finance Limited will be allocated 22,55,600 shares with 76 others. A maximum of up to 2,25,24,980 equity shares of the company of face value Rs 2.

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 2,125 crore and has delivered good profit growth of 50 per cent CAGR over the last 5 years.

Paramount Communications is attracting major players, recently welcoming Nexpact Ltd., a foreign institutional investor, as its largest FII shareholder with a 3.58 per cent stake. This vote of confidence is a testament to the company's impressive financial performance.

Paramount's financials paint a picture of exceptional growth. Q2FY24 saw a 28.6 per cent sales jump and a doubled net profit compared to the year-ago period. This momentum continued throughout H1FY24, with sales climbing 21.3 per cent and net profit tripling. The full year FY23 was even more explosive, with a 37 per cent sales surge and a staggering 500 per cent increase in net profit.

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. Paramount Communications is in an enviable position, primed to capitalize on its current momentum and deliver even greater returns in the future.

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 200 per cent in just 1 year, 1,000 per cent in 3 years and a whopping 6,470 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.