Paramount Communication Ltd.
Detailed Rationales behind selecting the stock:
Paramount Communications Ltd stands as a stalwart in the manufacturing of a diverse range of wires and cables, including power cables, telecom cables, railway cables, and specialized cables. With a robust product portfolio and a commitment to quality, Paramount has earned a prestigious position in the industry.
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Investing in Paramount Communications Ltd: A Lucid Investment Choice
Embarking on the journey of investment requires a discerning eye, and Paramount Communications Ltd stands out as a beacon in the world of wires and cables. Specializing in the manufacturing of power cables, telecom cables, railway cables, and a myriad of specialized cables, Paramount is not just a company; it’s a powerhouse of innovation and reliability.
In the dynamic world of investments, discerning investors seek not just stocks but compelling narratives of promise, growth, and resilience. Here’s why Paramount is not just a stock; it’s an investment revelation.
Why Paramount? Let’s delve into the compelling reasons:
- Diverse Product Portfolio: Paramount’s commitment to quality is mirrored in its expansive product line. From LT & HT Power Cables to Optical Fiber Cable (OFC) and Signalling Cables, the company has etched its presence across various segments with precision and excellence.
- Market Presence and Prestige: With a robust market capitalization of Rs. 3110 crores, Paramount is not just a player; it’s a market leader. The current stock price of Rs. 112 underscores the company’s stability and growth potential. Paramount has earned its prestigious position in the industry by consistently delivering quality products.
- Financial Strength and Valuation: The stock’s P/E ratio of 50 and a book value of Rs. 16.7 signify a company that is both financially robust and undervalued. The 52-week high/low of Rs. 112/27.9 reflects a resilient stock that has weathered market fluctuations, presenting an opportune moment for investors.
- Innovative Product Segments: Paramount’s product range is not just extensive; it’s avant-garde. With specialized cables like PTFE & Thermocouple Cables, Quad Cables, and Solar Cables, the company is at the forefront of technological advancement. Its 25 products and 2,500+ SKUs showcase a commitment to meeting diverse industry needs.
- Turnkey Services and Global Reach: Paramount goes beyond manufacturing cables; it specializes in turnkey services. The company’s expertise in the repair and installation of undersea cables positions it as a holistic solutions provider. With a strong export base and a footprint in countries like the UK, Spain, Russia, and more, Paramount is truly a global player.
- Manufacturing Excellence: Paramount operates through two state-of-the-art manufacturing facilities in Khushkhera, Rajasthan, and Dharuhera, Haryana. These facilities boast certifications from prestigious Indian and global agencies, attesting to their adherence to stringent quality standards. The recent initiation of production for 66 kV Power Cables further showcases the company’s commitment to staying at the forefront of technological advancements.
- Resilience and Adaptability: Paramount’s ability to adapt to market dynamics is evident in its financial performance. With a revenue mix highlighting a diversified portfolio, the company is resilient to economic fluctuations. The export capability, catering to reputed international corporations across various countries, is a testament to Paramount’s adaptability in a competitive global market.
- Environmental, Social, and Governance (ESG) Commitment: Paramount’s commitment to sustainability is reflected in its initiatives. The company’s products cater to renewable energy projects, contributing to a greener future. Additionally, the acquisition of Valens Technologies, specializing in HDPE pipes for underground cable installation, aligns with environmentally conscious practices.
- Future-Ready Investments: With the initiation of production for 66 kV Power Cables, Paramount positions itself strategically for the future. These cables, crucial for long-distance power transmission, find applications in renewable energy projects, industrial power distribution, and high-voltage electrical infrastructure, aligning with the global shift towards sustainable energy sources.
- Strong Regulatory Compliance: Paramount’s accreditations from BIS, NTPC, PGCIL, EIL, RDSO, TEC, UL-USA, LPCB-UK, and ISO certifications (ISO 9001, ISO
- Global Clientele of Distinction: When giants like Indian Railways, BSNL, L&T, Adani Renewables, and Siemens place their trust, it speaks volumes. Paramount’s distinguished clientele isn’t just a list; it’s a testament to reliability and industry acceptance.
Paramount doesn’t just stop at cables; it offers end-to-end solutions. With Telecom Consultancy, EPC Turnkey Projects, and Specialized initiatives like OPGW and Submarine Cable Installation & Repair, the company is positioned at the forefront of industry evolution.
In the age of sustainable energy, Paramount takes the lead with Solar Cables. As the world shifts towards renewable solutions, Paramount’s innovative products are well-poised for future demands.
Paramount Communications Ltd isn’t just a stock; it’s an investment narrative that unfolds a saga of innovation, reliability, and future-forward vision. Beyond the cables, it’s about connecting with a company that shapes the future of connectivity. Invest in Paramount – where every wire weaves a story of growth, resilience, and unlimited potential.
Financial Snapshot (As of the latest available data):
Market Cap: Rs. 3110 cr
Current Price: Rs. 112
Stock P/E: 50
Book Value: Rs. 16.7
52 Week High/Low: Rs. 112/27.9
Shareholding Pattern:
Promoter Holding: 53.5% (Change: -10.4%)
FII Holding: 7.61% (Change: 6.75%)
DII Holding: 0.10%
Public Holding: 38.8%
Product Segments:
Power Cables:
LT & HT Power Cables
LT & HT Aerial Bunch Cables
Control Cables
Instrumentation Cables
Telecom:
Optical Fiber Cable (OFC) & FTTH Jelly Filled Cables
CATV Cables
Railways:
Signalling Cables
Railway Power Axle Counter Cables
Special Products:
PTFE & Thermocouple Cables
Quad Cables
Fire Survival Cables
Solar Cables
EPC Services:
Telecom Consultancy & EPC
Power & Railway EPC Turnkey Projects
Specialized Projects OPGW
Submarine Cables Installation & Repair
The company boasts an extensive product line, with 25 products and over 2,500 SKUs, showcasing expertise in turnkey services, particularly in the repair and installation of undersea cables.
Clientele:
Paramount Communications Ltd has a distinguished clientele, including government bodies, institutions, and major private sector organizations. Notable clients encompass Indian Railways, BSNL, Tata Projects Limited, L&T, RailTel, Adani Renewables, Adani Power, Siemens, and others.
Revenue Mix (H1FY24):
Power Cables: 37%
Exports: 33%
Railway Cables: 11%
Domestic Wires: 6.7%
Telecom Cables: 6.3%
EPC Projects: 3.6%
Others: 2.4%
Geographical Presence:
The company has a strong domestic foothold, with 93% of revenue generated in India in FY21. The remaining 7% comes from international markets, showcasing a growing global presence compared to 4% in FY20.
Manufacturing Capabilities:
Operating through two manufacturing facilities in Khushkhera, Rajasthan, and Dharuhera, Haryana, Paramount holds certifications from various Indian and global agencies, attesting to its adherence to rigorous quality standards. The company has recently initiated the production of 66 kV Power Cables, crucial for long-distance power transmission.
Export Capability:
Paramount has successfully executed orders for renowned international corporations and agencies in countries such as the UK, Spain, Russia, South Africa, UAE, Jordan, Oman, Kuwait, and Qatar.
Acquisition:
In H1FY24, Paramount successfully completed the acquisition of Valens Technologies Private Limited, a company affiliated with the promoter group. Valens Technologies specializes in producing high-density polyethylene (HDPE) pipes, essential for the underground installation of cables, particularly in Telecom Projects.
In conclusion, Paramount Communications Ltd emerges as a key player in the cable manufacturing industry, backed by a diverse product range, strong global presence, and a commitment to quality and innovation.
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