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Check Before You Invest : Paramount Communications Ltd

BSE: 530555 NSE: PARACABLES ISIN: INE074B01023
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Cable

Snapshot

Q.1 Which industry/sub-sector does Paramount Communications Ltd belong to?
Paramount Communications Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Cable segment.
Q.2 Is Paramount Communications Ltd a good quality company?
Paramount Communications Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is Paramount Communications Ltd undervalued or overvalued?
Paramount Communications Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is Paramount Communications Ltd a good buy now?
Paramount Communications Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Paramount Communications Ltd?
Paramount Communications Ltd revenue growth is 48.6% for FY-2025 , which is above its 5 year CAGR of 20.8% , indicating faster growth.
Q.2 Gross Profit margin of Paramount Communications Ltd?
Paramount Communications Ltd Gross profit margin which is the profit after deduction of direct costs, is 7.9% for FY-2025 , which is above its 5 year median of 7.2% , indicating increasing margins.
Q.3 Operating Profit Margin of Paramount Communications Ltd?
Paramount Communications Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.72% for FY-2025 , which is above its 5 year median of 6.01% indicating increasing margins.
Q.4 Net Profit Margin of Paramount Communications Ltd?
Paramount Communications Ltd Net Profit Margin is 5.57% for FY-2025 , is in line with with its 5 year median of 5.57%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 7.9 7.2
Operating Profit Margin 7.72 6.01
Net Profit Margin 5.57 5.57
Q.5 Return on Asset of Paramount Communications Ltd?
Paramount Communications Ltd Return on Asset is 9.99%, which is above its 5 year historical median of 9.7%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Paramount Communications Ltd?
Paramount Communications Ltd Return on equity is 12.96% for FY-2025 , which is in line with its historical median of 12.96%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Paramount Communications Ltd?
Paramount Communications Ltd Return on capital employed is 16.57% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Paramount Communications Ltd?
Paramount Communications Ltd Cash conversion cycle is 86 days, below its historical median of 107 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.79 1.59
ROE 12.96 12.96
ROCE 16.57 13.25
Cash Conversion Cycle 86 days 107 days
Q.9 Debt to Equity ratio of Paramount Communications Ltd?
Paramount Communications Ltd Debt-to-Equity ratio is 0.03 , which is lower with the industry average of 0.56 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Paramount Communications Ltd?
Paramount Communications Ltd Debt to cash flow from operations is 0.23 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Paramount Communications Ltd?
Promoters hold 49.12% of the Paramount Communications Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Paramount Communications Ltd vs industry peers?
Paramount Communications Ltd revenue CAGR is 20.76% , compared to the industry median CAGR of 5.79% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 1,556.7 150.6
Gross Profit 123 8.1
Operating Profit 120 12.2
Net Profit 87 4
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.79 1.18
ROE 12.96 9.33
ROCE 16.57 13.25
Cash Conversion Cycle (days) 86.31 90

Valuation & price assessment

Q.1 Stock return of Paramount Communications Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 30.8% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 30.8% 35.1% 3.5% -27.4%
Q.3 Valuation ratios of Paramount Communications Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 20.13 4.53 36.89
Price to Book 1.55 0.77 2.40
Price to Sales 0.64 0.26 1.25
EV to EBITDA 11.11 8.17 12.04

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