Heavy buying witnessed in this cable stock which gained over 200% in just one year

Shares of Paramount Communications Limited gained about 5% today. The stock has witnessed heavy buying activity from investors. As of September 30, 2023, the company’s order book stood at Rs 361 crore. The company has announced impressive quarterly results. In the last six months, the stock has gained about 80%.

Paramount Communications Limited has delivered multi-fold returns to its shareholders in the last one year. During this period, the company’s share price surged from Rs 21.60 on December 08, 2020, to Rs 68.60 on December 08, 2023, representing an increase of over 200% in a one-year holding period. An investment of Rs 1 lakh in this company’s shares one year ago would have grown to Rs 3 lakh today.

Financial Performance

In Q2FY24, the company posted 18.76% growth in its consolidated revenue at Rs 252.44 crore compared to Rs 212.57 crore from the previous year’s corresponding quarter and on a sequential basis, revenue grew by 19.90%. The EBITDA rose by 36.69% YoY and stood at Rs 23.21 crore from Rs 16.98 crore; on a sequential basis, grew by 25.39%. The net profit stood at Rs 19.49 crore compared to Rs 12.62 crore, a YoY growth of 54.44% and a sequential growth of 34.04%. The EBITDA margin improved by 121 bps YoY and 40 bps QoQ to 9.2%. The net profit margin improved by 178 bps YoY and 81 bps QoQ to 7.7%.

Business Overview

Paramount Communications Limited is one of India’s leading cable and wires manufacturing companies. It was established in 1955 and has a wide range of products, including Power Cables, Domestic Wires, HT Cables, Optical Fiber Cables & other Telecom Cables, Signalling Cables, Railway Cables, Specialised Cables, Instrumentation & Data Cables, Fire Survival Cables, etc. Paramount’s products are technologically advanced and ensure protection.

Stock Price Movement

Today, the stock opened at Rs 66.99, with a high and low of Rs 68.61 and Rs 65.80, respectively. The stock closed trading at Rs 68.61, which increased by 4.99%. The stock has a 52-week high of Rs 76.21 and a 52-week low of Rs 20.90. The company has an ROCE of 13.8% and an ROE of 21.2%, with a market capitalization of Rs 1,680 crore.

The stock has shown impressive growth, and investors should keep a close eye on this stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.