1000% Returns In 3 Years: This Multibagger Soared 4% After Board Allotted 5,00,000 Shares To Non-Promoter

Shares of Paramount Communications Ltd took a slight dip today, dropping nearly 4% to Rs 63.59 per share from its previous closing of Rs 66.33 per share. The stock experienced an intraday high of Rs 68.79 per share and an intraday low of Rs 63.02 per share. The movement in the shares comes after the company announced a share allotment of 5,00,000 equity shares.

The Share Allotment Committee of Paramount Communications Ltd's Board of Directors convened on March 19, 2024, and allotted 5,00,000 equity shares, each with a face value of Rs 2, to non-promoter warrant holder Ali Akbar Parvez Khan. These shares were issued upon the exercise of warrants previously sold to Mr Khan at a price of Rs 21.57 per warrant. Mr Khan exercised his right to convert the warrants into the equivalent number of company shares. This action has led to an increase in the issued, subscribed, and paid-up capital of the company, from Rs 60,58,69,740 (divided into 30,29,34,870 shares) to Rs 60,68,69,740 (divided into 30,34,34,870 shares).

Paramount Communications Ltd is known for its diverse portfolio in the production of wires and cables, catering to various sectors such as power, telecom, railway, and specialized projects. The company holds a prestigious client base, including organizations like Larsen & Toubro, the Steel Authority of India (SAIL), BSES, Power Grid Corporation, Tata Steel, and Indian Railways, among others.

Despite the temporary dip in shares, the company announced a healthy quarterly results for Q3FY24 and nine-month results (9MFY24) for the fiscal year 2024. The Q3FY24 saw a significant increase in net sales by 30.3% to Rs 284.25 crore, operating profit increased by 35.5% to Rs 25.66 crore, and profit after tax (PAT) surged by 53.8% to Rs 22.03 crore compared to the same period last year.

Similarly, the nine-month results showcased a robust performance with net sales rising by 25.7% to Rs 747.23 crore, profit before tax (PBT) surging by 65.1% to Rs 56.1 crore, and PAT soaring by 65% to Rs 56 crore compared to the previous fiscal year.

The company's strong financial performance is backed by a healthy order book valued at Rs 443.5 crore as of December 31, 2023, spanning across sectors like power, railway, telecom, export, and EPC projects.

Moreover, Paramount Communications Ltd's shares have exhibited a remarkable Return on Equity (ROE) of 21.2% and a Return on Capital Employed (ROCE) of 14%. The stock has also delivered impressive returns, with multibagger returns of over 200% within a year and 1,000% over three years. Over the past decade, the stock has seen a rise from Rs 1.30 per share to an intraday high of Rs 68.79 per share, marking a multibagger return of 5,191%.

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