Debt-free in FY25: Multibagger cable stock at Rs 79.29 hit upper circuit with a strong order book of Rs 495.16 crore; keep under the radar!

The stock gave multibagger returns of 120 per cent from its 52-week low of Rs 34.15 and a whopping 600 per cent in 2 years.

Today, shares of Paramount Communications Ltd were locked in a 5 per cent upper circuit to Rs 79.29 per share from its previous closing of Rs 71.71. The stock’s 52-week high is Rs 116.70 and its 52-week low is Rs 34.15.

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 (Rs. 4951.6 million) 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.

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Earlier, the company received approval to list a total of 17,50,000 new equity shares on the stock exchange. These shares were issued to non-promoters on a preferential basis due to warrant conversion and have a face value of Rs 2 each. The first tranche of 5,00,000 shares comes at a premium of Rs 19.57 per share, bringing the total issue price to Rs 21.57. The second tranche of 12,50,000 shares has a premium of Rs 64.50 per share, resulting in a total issue price of Rs 66.50.

The company's shares exhibit an ROE of 20 per cent and an ROCE of 15 per cent. The stock gave multibagger returns of 120 per cent from its 52-week low of Rs 34.15 and a whopping 600 per cent in 2 years. Over a decade, the stock has soared from Rs 3.44 per share to an intraday high of Rs 79.29 per share, achieving multibagger returns of 2,200 per cent. Investors should keep an eye on this cable manufacturing stock.

Disclaimer: The article is for informational purposes only and not investment advice.