Rs 555.80 Crore Order Book: Cable Penny Stock Under Rs 80 Jumps Over 5 Per Cent On Stellar Q2 & H1 Results of FY25
The stock gave multibagger returns of 515 per cent in just 3 years and a whopping 650 per cent in 5 years.
On Monday, shares of Paramount Communications Ltd surged by over 5 per cent to Rs 70.90 per share from its previous closing of Rs 67.05 per share. Over the past year, the stock's price has fluctuated between a 52-week high of Rs 116.70 and a 52-week low of Rs 54.36.
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 maintains a strong financial position with a low debt-to-equity ratio of 0.16 and a healthy current ratio of 3.40. It is on course to become debt-free by the end of the current fiscal year, having fully repaid its Rs 86.25 crore debt.
The company's shares have an ROE of 20 per cent and an ROCE of 16 per cent. The stock gave multibagger returns of 515 per cent in just 3 years and a whopping 650 per cent in 5 years. Over a decade, the stock has soared from Rs 2.90 per share to Rs 70.75 per share, achieving multibagger returns of 2,340 per cent. Investors should keep an eye on this cable manufacturing stock.
Disclaimer: The article is for informational purposes only and not investment advice.