Small-Cap Stock Paramount Communications Hits Upper Circuit: Here’s Why

Shares of Paramount Communications Ltd surged 5 per cent to Rs 110 per share from its previous closing of Rs 104.85. The stock is near it's 52-week high which is Rs 116.85.

Paramount Communications Ltd. is ready for growth by expanding its capital base through two two ways i.e. a preferential allotment of shares to non-promoters at Rs 66.50 each and an authorized share capital increase of Rs 10 crore via new equity issuance. Along with this, Paramount Communications has allotted over 17 lakh equity shares to non-promoter warrant holders who exercised their warrants at Rs 21.57 per warrant.

The company also have a strong order book of Rs 361 crore as of September 30, 2023. Also, the portfolio is well-diversified, spanning power, railway, telecom, house wire, export, and EPC projects, providing clear visibility for continued growth.

As of November 2023, the shareholding distribution indicates a rise in the stake held by Foreign Institutional Investors (FIIs) in the company. During the period from October 2023 to November 2023, FIIs acquired an additional 1,71,80,366 shares, causing their ownership to surge from 0.52 per cent to 7.61 per cent.

The stock gave multibagger returns of 1,200 per cent in 3 years. From Rs 1.61 per share to Rs 110 per share, the stock gave multibagger returns of over 6,700 per cent in a decade.

Paramount Communications Ltd manufactures wires and cables comprising of power cables, telecom cables, railway cables and specialised cables. The company have handsome numbers of clients, a few of them are Larsen & Toubro, Steel Authority of India (SAIL), BSES, Bharat Heavy Electrical Ltd, Power Grid Corporation, BSNL, Tata Steel, Alcatel Lucent Enterprises, ISRO, Indian Railways, Indian Oil, NTPC, etc.