Rs 443.5 crore order book and 6,575 per cent returns: Board of this cable manufacturing company allotted 12,50,000 shares; PAT zooms 65 per cent!
The stock gave multibagger returns of over 200 per cent within just 1 year and 1,000 per cent over three years.
Today, shares of Paramount Communications Ltd plunged 3.14 per cent to Rs 100.15 per share from its previous closing of Rs 103.40 with an intraday high of Rs 104.90 and an intraday low of Rs 99.35. The stock’s 52-week high is Rs 116.70 and its 52-week low is Rs 28.
The Board of Directors of the company has announced that, as per letters dated January 23, 2024, from BSE Limited and National Stock Exchange of India Limited, and upon receiving a total amount of Rs 8,31,25,000 at the rate of Rs 66.50 per equity share as the equity share subscription price, the share allotment committee of the Board of Directors of the company has duly considered and approved the allotment of 12,50,000 equity shares on a preferential basis to non-promoter persons/entities. Following this allotment, the issued, subscribed, and paid-up capital of the company has been increased from Rs 60,33,69,740 (divided into 30,16,84,870 equity shares) of Rs 2 to Rs 60,58,69,740 (divided into 30,29,34,870 equity shares of Rs 2 each).
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 organizations 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 (Q3FY24) and nine-month results (9MFY24) for the fiscal year 2024. According to quarterly results, the net sales increased by 30.3 per cent to Rs 284.25 crore, operating increased by 35.5 per cent to Rs 25.66 crore and profit after tax (PAT) increased by 53.8 per cent to Rs 22.03 crore in Q3FY24 compared to Q3FY23 while in its nine-month results, the net sales increased by 25.7 per cent to Rs 747.23 crore, profit before tax (PBT) increased by 65.1 per cent to Rs 56.1 crore and profit after tax (PAT) increased by 65 per cent to Rs 56 crore in 9MFY24 compared to 9MFY23.
These remarkable outcomes are supported by a robust order book totalling Rs 443.5 crore as of December 31, 2023. The portfolio is diversified across various sectors including power, railway, telecom, house wire, export, and EPC projects.
The company's shares exhibit a Return on Equity (ROE) of 21.2 per cent and a Return on Capital Employed (ROCE) of 14 per cent. The stock gave multibagger returns of over 200 per cent within just 1 year and 1,000 per cent over three years. Over a decade, the stock has soared from Rs 1.50 per share to an intraday high of Rs 100.15 per share, achieving multibagger returns of 6,575 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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