Shares of this multibagger cable stock hit the 5 percent upper circuit in Tuesday’s trading session after the company’s Board approved fundraise of approximately Rs 150 crores. In the past month, the company’s stock has gained more than 40 percent for its stakeholders.
With a market capitalization of Rs 2,124.81 crores, the stocks of Paramount Communications Limited started their trading session on Tuesday at Rs 86.75 and currently is locked at the same price representing the 5 percent upper circuit. The company’s stock is close to its 52-week high price recorded at Rs 86.80.
Such sharp movements in the stock price were observed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), intimated about the company’s Board, in a meeting held on 18th December 2023, approved fundraising by way of issuing around 2.25 crore equity shares at Rs 66.50 per equity share.
The issue is in accordance with the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and will be allocated to persons/entities who do not belong to the Promoter and Promoter group of the company.
Keeping a purview of one year, the company’s stock has gained around 205 percent for its shareholders, viz, if someone had invested Rs 1 lakh in December last year, it would have converted to Rs 3.05 lakhs.
During the recent financial quarters, the company’s prime business indicators such as operating revenues and net profits have shown positive movements with the former increasing from Rs 210.54 crores during Q1FY23-24 to Rs 252.44 crores during Q2FY23-24, and, the latter, during the same period, rose from Rs 14.53 crores to Rs 19.49 crores.
As per the recent presentations, the company’s total order book size stands at Rs 361 crores out of which Rs 206 crores is constituted by the ‘Power’ segment, also constituting 37 percent of the total revenue as per H1FY24, and the rest by other diversified segments of the company.
Paramount Communications Limited is a wire and cable manufacturing company with a wide range of offerings including low-voltage & high-voltage power cables, instrumentation & control cables, aerial bunch cables, and others. The company’s products are applied in various sectors comprising power, telecom, railways, IT, etc.
Written by Amit Madnani
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