This stock has made higher highs and higher lows over the past 5Y and 1Y period and has returned a whopping 250% in 1Y – meaning, if you had invested Rs. 1 Lakh in this stock one year ago, it would have now been worth Rs. 3.5 Lakh! This has been consistent with 3Y returns being 623%. Recent price trend is supported by above industry average volumes today and in the week. The stock you should be watching right now is – Paramount Communications.
Paramount increased 5% today and is rapidly approaching its 52W high price, being just 1 bps away with strong volume (opened with highest volume in the industry and has been rising) and fundamentally supported momentum. Its debt has reduced ~10% with debt-to-equity falling from 0.87 to 0.54 in the last FY and Promoter holding increased by 190 bps. FIIs showing interest, consistent cash flow positive and much lower than industry average P/E at 22.35 vs industry average of 34.52 makes Paramount a stock that you should be watching while Q1 results are around the corner.
Performance wise, Paramount top-line has grown 37% YoY from Rs. 5,809 crore to Rs. 7,964 crore and EBITDA growth at 65.3% from Rs. 242 crore to Rs. 642 crore in FY22. PAT grew a whopping 483% from Rs. 82 crore in FY22 to Rs. 478 crore in FY23. All the growth hasn’t been at the cost of margins – EBITDA margins expanded 377 bps from 4.13% PY and PAT margins grew 440 bps from 1.4% PY. Diluted EPS grew 471% from 0.42 to 2.4 in FY2023. ROE is now 16.2% vs 4.1% in FY22.
Moving forward, Paramount plans expansion in Australia and Europe, and expects string accretion to its top and bottom lines at 15% CAGR. In FY23, its exports share grew 44%, in line with its geographic expansion and diversification goals.Paramount has projects in the pipeline for power transmission companies and is prequalified for central and state government contracts.
Paramount Communications Ltd (“Paramount’) is one of India’s leading Cables & Wires manufacturer that caters to a broad array of verticals and was the first mover in Laying and Maintenance of Deep Sea Cables, Lead Free Cables Introduction in India. It has 2500+ SKUs and is well placed in the industry, being the 8th largest by market cap in the Cables Industry.
Written by Sandeep R
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