FII-bought 1,00,00,000 shares of the multibagger penny stock with Rs 361 crore order book; scrip hit upper circuit & PAT zooms 270 per cent!

The stock gave multibagger returns of 240 per cent in just 1 year, 840 per cent in 3 years and a whopping 5,100 per cent in a decade.

Indian markets painted a green canvas today, with both Sensex and Nifty reaching unprecedented levels. The Sensex climbed above 70,000, while the Nifty crossed the 21,000 threshold, both marking historic milestones. This significant rise indicates the optimism of the investor community towards the future prospects of the Indian market.

Along with the market in green, shares of this multibagger penny stock were locked in a 5 per cent upper circuit to Rs 72.04 per share from its previous closing of Rs 68.61. The stock’s 52-week high is Rs 76.21 and its 52-week low is Rs 20.90. The shares of the company saw a spurt in volume by more than 2.36 times on BSE.

The stock name is PARAMOUNT COMMUNICATIONS LTD.

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 1,700 crore and has delivered good profit growth of 43 per cent CAGR over the last 5 years.

Nexpact Ltd, a Foreign Institutional Investor, has acquired 1,00,00,000 shares, translating to a 3.58 per cent stake in the company, making it the largest FII shareholder.

The company's net sales increased by 28.6 per cent to Rs 210.54 crore and net profit increased by 107 per cent to Rs 14.53 crore in Q2FY24 compared to Q2FY23. In H1FY24, net sales increased by 21.3 per cent to Rs 420.17 crore and net profit increased by 270 per cent to Rs 28.12 crore compared to H1FY23. The company's strong financial performance continued in FY23, with net sales increasing by 37 per cent to Rs 796 crore and net profit skyrocketing by 500 per cent to Rs 48 crore compared to FY22. The company's order book remains strong, providing visibility for future growth.

As of 30th September 2023, Paramount Communications has a strong diversified order book worth Rs 361 crore providing strong revenue visibility. Paramount Communications Ltd.'s order book comprises power orders valued at Rs 206 crore, railway orders worth Rs 86 crore, telecom orders worth Rs 10 crore, house wire orders worth Rs 8 crore, export sales orders worth Rs 39 crore, EPC orders worth Rs 7 crore and other orders worth Rs 5 crore.

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 240 per cent in just 1 year, 840 per cent in 3 years and a whopping 5,100 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.