Paramount Communications Ltd experienced a resurgence in its shares on Monday, rebounding from initial losses to trade flat.Paramount Communications experiences a 5% surge in its multibagger stock suges 5% following recent fresh allotment and ongoing acquisition discussions.
The company’s board is set to convene on Wednesday to evaluate the potential acquisition of Valens Technologies. This development caused the stock to briefly dip to Rs 51.1 but later recover 5% to reach Rs 53.45 on Monday. The company’s market capitalization stands at around Rs 1,230 crore, and it closed at Rs 53.5 on the previous Friday. Paramount Communications shares have displayed remarkable growth, soaring approximately 300% from their 52-week low of Rs 13.65. Moreover, the stock has witnessed a 40% increase in value within the current month.
In the recently concluded quarter ending June 30, 2023, Paramount Communications reported an impressive 107% surge in net profit, reaching Rs 14.5 crore compared to Rs 7.03 crore in the corresponding period the previous year. Revenue from operations also witnessed a substantial increase, rising by 29% to Rs 210.54 crore in Q1FY24, up from Rs 163.73 crore the previous year. The company’s EBITDA grew by 77%, reaching Rs 18.51 crore on a year-on-year basis.
Paramount Communications, a member of the Paramount group of companies, stands out as a prominent player in India’s wire and cable manufacturing sector. With more than six decades of operation, the group boasts an extended portfolio and serves a prestigious clientele that includes government bodies, institutions, and significant private sectors.
The stock of Paramount Communications, classified as a small-cap stock valued below ₹100, has showcased extraordinary performance, delivering remarkable returns to its shareholders amid the post-Covid rally. Over the past three years, this small-cap stock has evolved into a , generating over 700% returns for its shareholders.
Recent developments, such as the issuance of fresh shares worth ₹9.76 crore, have propelled renewed interest in the stock. Following the allotment of these fresh shares, the stock saw increased buying activity, resulting in a 5% upper circuit during Monday’s trading. On the BSE, the share price opened on an upward trajectory and reached the upper circuit at ₹56.17. This price is merely 3.20% below its all-time high of ₹67.97 per share.
The company disclosed the issuance of fresh shares, stating that the Share Allotment Committee of the Board of Directors approved the allocation of 45,25,000 equity shares with a face value of Rs. 2/- each to non-promoter warrant holders. These warrants were exercised at a price of ₹21.57 per warrant. Additionally, the company’s board of directors revealed plans to consider and approve the acquisition of a 100% stake in Valens Technologies Private Limited.