Rs 361 crore order book & FIIs increase stake: Multibagger penny stock under Rs 70 hit upper circuit, PAT zooms 270 per cent!

The stock gave multibagger returns of 180 per cent in just 1 year, 875 per cent in 3 years and a whopping 4,680 per cent in a decade.

Today, shares of Paramount Communications Ltd hit a 5 per cent upper circuit to Rs 65.75 per share from its previous closing of Rs 62.62 per share. The stock’s 52-week high is Rs 76.21 per share and its 52-week low of Rs 20.25 per share.

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. This strong growth was driven by increased demand for the company's products and services. 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.

Earlier, the company acquired Valens Technologies, a leading HDPE pipe manufacturer, for Rs 1.98 crore. This acquisition will strengthen Paramount's presence in the EPC services sector. Valens Technologies generated significant revenue of Rs 28,07,62,401 in the financial year ending March 31, 2023, demonstrating its strong position in the industry.

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 1,500 crore and has delivered good profit growth of 43 per cent CAGR over the last 5 years. In September 2023, Foreign Institutional Investors (FIIs) increased their stake from 0.52 per cent to 7.61 per cent.

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 180 per cent in just 1 year, 875 per cent in 3 years and a whopping 4,680 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.