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Paramount Communications Ltd. Stock Analysis

Small Cap
Evaluated by 288 users | BSE: 530555 | NSE: PARACABLES |
Cable
S S Aggarwal launched Paramount Cables in the year 1955 by setting up a small cable manufacturing unit as a family venture along with his brothers. In the year 1978 he established a new unit under the name of Paramount Cable Corporation which started supplying telecom cables to the Department...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed -16.78%-7.11%-0.07%-15.01%-21.57%-41.65%-18.52%-0.6%10.89%9.35%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 385463468409452309316433614606
Y-o-Y Gr. Rt.-20.4%0.9%-12.6%10.5%-31.5%2%37.3%41.9%-1.3%
Adjusted EPS (Rs.) -11.49-6.1-2.51-6.42-8.13-9.69-3.76-0.341.681.41
Y-o-Y Gr. Rt.-NANANANANANANANA-16.1%
Book Value per Share (Rs.) 6.860.480.62-9.54-17.78-27.47-0.926.038.239.89
Adjusted Net Profit -102-56.8-31.4-80.4-102-121-47.1-4.828.926.1
Net Op. Cash Flow (Rs. Cr.) -58.418.159.132.812.713852.220.1-17.613.1
Debt to Cash Flow from Ops -6.1621.586.2712.4136.793.035.5310.1-11.5514.35
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Paramount Communications Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 5.2%6.1%24.3%-1.3%
Adjusted EPS NANANA-16.1%
Book Value per Share 4.20020.2
Share Price 12.5% 22.9% -13.8% -24.5%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) -89.68-156-289.16169.9762.6344.1627.17-12.8625.3816.1
Operating Profit Margin (%) -15.07-1.282.57-4.77-7.25-13.22-15.13-1.174.487.42
Net Profit Margin (%) -26.44-12.25-6.71-19.65-22.53-39.22-14.93-1.114.74.3
Debt to Equity 5.9287.9523.97-3.64-2.16-1.25-25.082.351.431.03
Working Capital Days 339262256272206247197168168203
Cash Conversion Cycle 2432212232421782031409690116
Entity Percentage Holding
Promoters 60.08%
Institutions 1.59%
Non-Institutions 38.33%
Pledged *0.000.0040.7340.7340.7640.7340.7335.9135.8635.86
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Paramount Communications Ltd.'s performance infers:

Paramount Communications Ltd. earnings have grown by 0%, whereas share price has appreciated 22.9% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Paramount Communications Ltd. share prices over the last 10 years. Here is what we found out:

Paramount Communications Ltd. share price has appreciated -0.4% annually over the past ten years.

S S Aggarwal launched Paramount Cables in the year 1955 by setting up a small cable manufacturing unit as a family venture along with his brothers. In the year 1978 he established a new unit under the name of Paramount Cable Corporation which started supplying telecom cables to the Department of Telecommunications.

This unit grew into one of the largest cable makers in India and was converted into a company, Paramount Communications Ltd in the year 1994. Today Paramount Communications

S S Aggarwal launched Paramount Cables in the year 1955 by setting up a small cable manufacturing unit as a family venture along with his brothers. In the year 1978 he established a new unit under the name of Paramount Cable Corporation which started supplying telecom cables to the Department of Telecommunications.

This unit grew into one of the largest cable makers in India and was converted into a company, Paramount Communications Ltd in the year 1994. Today Paramount Communications Ltd along with its group company Paramount Wires and Cables ltd is one of the largest cable manufacturing companies in India. With a wide product basket and superior technical expertise paramount caters to the requirement of several national and international customers from almost all the sectors of the economy.

Paramount caters to a wide range of industries with an equally wide range of technologically advanced cables, cords and wires for Telecommunication, Railways, Space Research, Thermal & Nuclear Power Plants, Petrochemical, Fertilizers, Steel, Electronics and various other industries.

Paramount Cables has always laid major emphasis on keeping abreast with the latest international developments, focusing and adapting technology to create multi-faceted, need-based products for utilization in various spheres of industrial activity.

The company has two manufacturing plants located in Khushkhera, Rajasthan and Dharuhera, Haryana respectively. Both plants are awarded ISO 9001 and ISO 14001 certificates.

Products range of the company includes:

Power Cables-

  • HT Power Cables 
  • LT Power Cables 
  • Aerial Bunch Cables
  • Control Cables
  • Instrumentation Cables 
  • Thermocouple Cables  

Railway Cables

  • Paramount Cables is among the few Cable companies who manufacture the following types of cables for Indian Railway .
  • Underground Railway Signaling Cables
  • Underground Railway Quad Axle Counter Cables
  • Optical Fiber Cables
  • Power Cables
  • Specialized Instrumentation cables for underground and elevated Metro Projects

Telecom Cables

  • Optical Fiber Cables  
  • Jelly Filled Cables   
  • Aerial Telecom Cables   
  • Buried Service Wire   
  • Installation Cables   

Achievements/ Recognition:

  • The company has been awarded ISO 9001 and 14001 by Moody International, bearing eloquent testimony to the stringent quality that is the hallmark of Paramount products.
  • Indian Specifications- Bureau of Indian Standards (BIS), Indian Railway Specifications (IRS), Indian Telecom Department (ITD), Telecom Engineering Centre (TEC) and Engineers India Ltd. (EIL) etc.
  • International Specifications- British Standard Specifications (BSS), American Standard for Testing Methods (ASTM), International Electro Technical Committee Specifications (IEC) and Vereingte Deutsche Elktrotechniker (VDE) etc.
  • Paramount is also licensed by the Bureau of Indian Standards (BIS) to mark its products with IS7098 Part1 (for XLPE Power Cables), IS 14255 (for Aerial Bunch Cables), IS 694 (for unarmored PVC Cables) and IS 1554 PArt1 (for armored PVC Cables up to 1.1 KV).

Clientele

The clients of the company includes, Power Grid Corporation of India Ltd (PGCIL), National Thermal Power Corporation (NTPC), Bharat Heavy Electricals Ltd (BHEL), Department of Atomic Energy, Govt. of India, Indian Oil Corporation Limited (IOCL) and many more.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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