Multibagger in just 1 year: This cable manufacturing company likely to acquire 100 per cent stake in Valens Technologies Private Limited
The stock gave multibagger returns of 265 per cent in just 6 months and a whopping 500 per cent in 3 years.
Paramount Communications Ltd informed that a meeting of the Board of Directors of the company is scheduled to be held on Wednesday, August 23, 2023, to consider the proposal for the acquisition of 100 per cent equity shares of Valens Technologies Private Limited from its existing shareholders.
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 1,200 crore and has delivered good profit growth of 42.5 per cent CAGR over the last 5 years.
According to its Quarterly Results, the net sales increased by 29 per cent to Rs 211 crore and net profit skyrocketed by 115 per cent to Rs 15 crore in Q1FY24 compared to Q1FY23. 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.
The shares of the company have a PE of 21.3x, an ROE of 19.2 per cent and a ROCE of 21.3 per cent. The stock gave multibagger returns of 265 per cent in just 6 months and over 500 per cent in 3 years.
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On Monday, shares of Paramount Communications Ltd plunged 1.57 per cent to Rs 52.66 per share with an intraday high of Rs 53.45 and an intraday low of Rs 51.10. The stock’s 52-week high is Rs 57.97 and its 52-week low is Rs 13.65. Investors should keep an eye on this Small-Cap cable manufacturing stock.
Disclaimer: The article is for informational purposes only and not investment advice.