Rs 555.80 Crore Order Book: Cable Penny Stock To Keep Under Radar As Company Received A Positive Step Towards Its Expansion Plans
The stock gave multibagger returns of 490 per cent in just 3 years and a whopping 850 per cent in 5 years.
Paramount Communications Ltd. has received a positive step towards its expansion plans. The MP Industrial Development Corporation Ltd. has issued a Letter of Intent (LOI) to the company for the allotment of 30 acres of land in Madhya Pradesh. This land will be utilized to establish a new manufacturing unit dedicated to producing DC and AC cables. The long-term lease of 99 years for the land will provide a solid foundation for Paramount Communications' future growth and operations.
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.
The company reported strong financial performance for both the second quarter of fiscal year 2025 (Q1FY25) and the half-yearly 2025 (H1FY24). In Q2FY25, net sales surged 41 per cent to Rs 355.89 crore, operating profit climbed 45 per cent to Rs 33.59 crore and profit after tax (PAT) soared 4.3 per cent to Rs 20.33 crore compared to the same period last year. For the entire H1FY25, net sales grew 46 per cent to Rs 676.95 crore, operating profit increased 52 per cent to Rs 63.50 crore and PAT jumped 34 per cent to Rs 45.63 crore compared to H1FY24.
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The company has a robust order book of Rs 555.80 crore and is experiencing strong sales across all product lines, especially power and railway cables. Export sales have remained steady compared to the previous fiscal year. Increased production is driving cost efficiencies and improving profitability. The company's shares have an ROE of 19 per cent and an ROCE of 15 per cent. The stock gave multibagger returns of 490 per cent in just 3 years and a whopping 850 per cent in 5 years. Over a decade, the stock has soared from Rs 2.35 per share to Rs 85.97 per share, achieving multibagger returns of 3,538 per cent. Investors should keep an eye on this cable manufacturing stock.
Disclaimer: The article is for informational purposes only and not investment advice.