Small Cap Stock Hits 5% Circuit On Appointment of New Independent Directors

The BSE opened Paramount Communications Ltd.'s shares on Thursday at Rs. 97 apiece, but they quickly rose to reach a 5% upper circuit limit at Rs. 101.67, which was also a new 53-week high. Given that the cable stock has gained 178% over the last six months and 15.77% year to date, it is one of Dalal Street's multibagger stocks.

Paramount Communications News

Last week on Friday the Board of Directors of the company approved to increase the authorized share capital from 70,00,00,000/- divided into 30,00,00,000 equity shares of Rs 2/- each and 10,00,000 redeemable preference shares of Rs 100/- each to Rs 80,00,00,000/- divided into 35,00,00,000 equity shares of Rs 2/- each and 10,00,000 redeemable preference shares of Rs 100/- each by the addition there to a sum of Rs 10,00,00,000/- divided into 5,00,00,000 equity shares of Rs 2/- each.
The Board also approved Shri Harish Pal Kumar (DIN: 01826010) and Shri Narendra Kumar Goyal (DIN: 01963727) as Non- Executive Independent Directors of the company for a period of 5 years effective from 18th December.

Paramount Communications Share Price History

The stock price went up from Rs 11.75 to the current market price during the previous five years, resulting in a multibagger return of 762.13%. The stock price climbed from Rs 9.15 to the current market price during the previous three years, resulting in a multibagger return of 984%. The stock price soared from Rs 42.55 to the current market price in the past year, yielding a multibagger return of 138.07%. The stock has gone up by 15.77% YTD, and by growing from Ra 38.50 to the current market price during the previous six months, it has produced a multibagger return of 177.53%.

Paramount Communications Share Price Target

Paramount Communication is bullish but very overbought on the Daily charts with next resistance at 105. Investors should book profits at current levels as Daily close below support of 90 could lead to a target of 79 in the near term, said AR Ramachandran from Tips2trades.