Multibagger cable stock under Rs 80 - Could it be the next KEI Industries? Board likely to raise funds; Order books at Rs 495.16 crore & Debt-free in FY25
They are on track to become debt-free in FY25 after fully repaying the Rs 86.25 crore debt.
On Tuesday, the stock market started the day in green with the BSE Sensex Index and the NSE Nifty-50 Index up over 1 per cent each. Along with the market in green, one multibagger stock from the cable industry gains 2.41 per cent to Rs 76.32 per share from its previous closing of Rs 74.79 per share. The stock’s 52-week high of Rs 116.70 and its 52-week low of Rs 47.
The shinning start is Paramount Communications Ltd.
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 announced stellar Quarterly Results (Q4FY24) and annual results (FY24) for the fiscal year 2024. According to quarterly results, the net sales increased by 56.3 per cent to Rs 326.1 crore, operating increased by 67.4 per cent to Rs 29.88 crore and profit after tax (PAT) increased by 113.7 per cent to Rs 29.49 crore in Q4FY24 compared to Q4FY23 while in its annual results, the net sales increased by 32.7 per cent to Rs 1,078.56 crore, profit before tax (PBT) increased by 51.5 per cent to Rs 97.26 crore and profit after tax (PAT) increased by 79.3 per cent to Rs 85.63 crore in FY24 compared to FY23.
The company boasts a strong order book of Rs 495.16 crore and reports strong performance across all product categories, particularly power and railway cables. Export volumes remain consistent with FY23. Increased production is leading to economies of scale and improved profitability. The company maintains a healthy balance sheet with a debt-equity ratio of 0.16 and a current ratio of 3.40. They are on track to become debt-free in FY25 after fully repaying the Rs 86.25 crore debt.
Paramount Communication Ltd. announces that its Board of Directors will meet on August 8, 2024, to review and approve the unaudited financial results for the quarter ending June 30, 2024, and to consider a proposal to raise funds through issuing various securities, including equity shares, GDRs, ADRs, FCCBs, convertible securities, debentures, and preference shares, through methods like public issue, preferential allotment, private placement, QIP, or any other permissible route, subject to regulatory and shareholder approval. This notice complies with Regulation 29 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
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Comparison between Paramount Communication Ltd & KEI Industries Ltd:-
Paramount Communications and KEI Industries are prominent players in India's cable and wire manufacturing industry, though they have distinct focuses. Paramount Communications is a versatile company involved in producing a wide range of cables, from power and telecom to railway and specialized applications. They also offer EPC services, particularly in the telecom and power sectors. On the other hand, KEI Industries primarily concentrates on power and control cables, establishing itself as a leading force in the power transmission and distribution segment. While Paramount has a broader product portfolio and services, KEI has carved a strong niche in the power cable market.
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Company Name
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Paramount Communications Ltd
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KEI Industries Ltd
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Market Cap
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Rs 2,300 crore
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Rs 36,000 crore
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PE (x)
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26
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61
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ROE (%)
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20
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20
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ROCE (%)
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16
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27
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Debt to equity
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0.16
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0.05
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1-year returns (%)
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69
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67
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5 years returns (%)
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735
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815
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Compounded Sales Growth
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3 years: 27%
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3 years: 26%
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Compounded Profit Growth
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3 years: 203%
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3 years: 29%
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Stock Price CAGR
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3 years: 70%
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3 years: 77%
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A question arises Could it be the next KEI Industries Ltd? Do let us know your thoughts in the comments below
Disclaimer: The article is for informational purposes only and not investment advice.
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