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Last Updated on: 21 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Paramount Communications Ltd

Basic Stock Data

Last Updated: June 20, 2024, 10:32 pm

Market Cap 2,211 Cr.
Current Price 72.9
High / Low117/34.2
Stock P/E25.8
Book Value 20.6
Dividend Yield0.00 %
ROCE15.4 %
ROE19.6 %
Face Value 2.00
PEG Ratio1.66

Competitors of Paramount Communications Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Vindhya Telelinks Ltd 2,803 Cr. 2,3612,899/1,8199.91 3,3530.64 %10.9 %7.66 % 10.0
Surana Telecom and Power Ltd 316 Cr. 23.323.3/8.6841.5 9.860.00 %7.19 %5.93 % 1.00
Tamil Nadu Telecommunications Ltd 48.5 Cr. 10.617.3/5.80 35.80.00 %%% 10.0
Birla Cable Ltd 759 Cr. 253433/16433.7 84.00.99 %11.6 %9.33 % 10.0
Sterlite Technologies Ltd 6,653 Cr. 137179/110 50.70.73 %5.13 %2.78 % 2.00
Industry Average2,115.90 Cr556.9817.02706.670.47%6.96%5.14%6.60

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales15216496138163183164213218202211252284
Expenses14715994133157176156199203191194231260
Operating Profit5625678141511172124
OPM %3%3%3%4%4%4%5%7%7%6%8%8%8%
Other Income1111123347222
Interest2122211222211
Depreciation2222222222222
Profit before tax23-12357131414152022
Tax %0%0%0%0%0%0%0%0%0%0%0%0%0%
Net Profit23-12357131414151922
EPS in Rs0.100.13-0.050.080.140.250.360.650.740.710.620.820.79

Last Updated: June 11, 2024, 3:11 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 5:53 am

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales699677412451308314433614606518580794949
Expenses713685431486351362436571561501559746876
Operating Profit-14-8-20-35-44-48-3424517204873
OPM %-2%-1%-5%-8%-14%-15%-1%7%7%3%4%6%8%
Other Income2045-2942923133341612
Interest44494261742048117676
Depreciation1312119910991191099
Profit before tax-50-24-101-101-12415152926384870
Tax %-0%-0%0%0%0%0%0%0%0%0%0%0%
Net Profit-50-25-101-101-12415152926384870
EPS in Rs-5.42-1.96-8.05-8.06-9.891.171.031.701.430.160.422.462.94
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)50.00%-304.00%0.00%-22.77%112.10%0.00%93.33%-10.34%-88.46%166.67%500.00%
Change in YoY Net Profit Growth (%)0.00%-354.00%304.00%-22.77%134.87%-112.10%93.33%-103.68%-78.12%255.13%333.33%

Growth

Compounded Sales Growth
10 Years:10%
5 Years:12%
3 Years:27%
TTM:35%
Compounded Profit Growth
10 Years:12%
5 Years:24%
3 Years:203%
TTM:79%
Stock Price CAGR
10 Years:35%
5 Years:47%
3 Years:77%
1 Year:98%
Return on Equity
10 Years:%
5 Years:14%
3 Years:16%
Last Year:20%

Last Updated: June 16, 2024, 5:00 pm

Paramount Communications Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital19252525252529343739393948
Reserves-25-48-143-246-368-3658107145154163211350
Preference Capital088880000000
Borrowings475410342397346217203210210202187160151
Other Liabilities164184184179305116101118120769394136
Total Liabilities633571407355308321390469512471481504685
Fixed Assets14298888175138130132145142135128156
CWIP1000000000001
Investments11100000000100
Other Assets489472318274233183260337367329346366529
Total Assets633571407355308321390469512471481504685

Reserves and Borrowings Chart

Paramount Communications Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 4768137141385220-1814141511
Cash from Investing Activity -2551-2-121-8-6-3-1-16
Cash from Financing Activity -46-123-136-7-127-53-1825-8-5-1922
Net Cash Flow-1-0251014-1-06-617

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-14.00-16.00-28.00-43.00-52.00-48.00-3.0042.0045.0017.0020.0048.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days10410512212815213515912712511810978
Inventory Days155163149656917296088889271
Days Payable586782286625958088596725
Cash Conversion Cycle20120018916415612793107125147134123
Working Capital Days1411397414-20336105107126150142128
ROCE %-5%-4%-9%-20%-52%-49%-3%12%10%3%4%14%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters62.12%62.12%62.12%62.12%62.12%62.12%62.12%62.12%63.90%62.68%53.51%49.31%
FIIs0.06%0.01%0.00%0.00%0.00%0.06%0.07%0.55%0.86%0.52%7.60%6.98%
DIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.21%0.00%0.00%
Public37.83%37.88%37.88%37.88%37.88%37.82%37.80%37.34%35.24%36.58%38.89%43.71%
No. of Shareholders33,80840,45642,10644,49444,91544,15240,81943,69644,76659,33370,89797,446

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)3.292.400.420.171.53
Diluted EPS (Rs.)3.292.400.420.171.52
Cash EPS (Rs.)3.132.940.910.622.03
Book Value[Excl.RevalReserv]/Share (Rs.)20.6412.8710.399.949.76
Book Value[Incl.RevalReserv]/Share (Rs.)20.6412.8710.399.949.76
Revenue From Operations / Share (Rs.)35.2841.0229.9226.7332.92
PBDIT / Share (Rs.)3.213.311.240.982.60
PBIT / Share (Rs.)2.902.830.750.522.00
PBT / Share (Rs.)2.702.460.420.151.43
Net Profit / Share (Rs.)2.822.460.420.151.43
NP After MI And SOA / Share (Rs.)2.822.460.420.151.43
PBDIT Margin (%)9.088.064.153.707.90
PBIT Margin (%)8.206.892.511.956.08
PBT Margin (%)7.655.991.410.594.34
Net Profit Margin (%)7.995.991.410.594.34
NP After MI And SOA Margin (%)7.995.991.410.594.34
Return on Networth / Equity (%)13.6719.114.061.6014.66
Return on Capital Employeed (%)13.6613.393.942.679.61
Return On Assets (%)10.359.471.700.655.14
Long Term Debt / Equity (X)0.020.440.770.901.03
Total Debt / Equity (X)0.160.630.860.901.03
Asset Turnover Ratio (%)1.611.621.221.061.24
Current Ratio (X)3.403.902.993.382.74
Quick Ratio (X)2.122.691.952.281.89
Inventory Turnover Ratio (X)4.875.154.283.805.26
Interest Coverage Ratio (X)16.478.953.772.734.55
Interest Coverage Ratio (Post Tax) (X)15.507.662.281.443.50
Enterprise Value (Cr.)2110.55733.19349.96312.68293.12
EV / Net Operating Revenue (X)1.970.920.600.600.48
EV / EBITDA (X)21.7011.4214.4916.276.12
MarketCap / Net Operating Revenue (X)1.900.760.320.300.20
Price / BV (X)3.252.420.930.820.68
Price / Net Operating Revenue (X)1.900.760.320.300.20
EarningsYield0.040.070.040.010.21

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 106.25

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 45.75% compared to the current price 72.9

Intrinsic Value: 122.73

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 68.35% compared to the current price ₹72.9

Last 5 Year EPS CAGR: 15.51%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock is trading at a low valuation with an average P/B ratio of 1.80 and average Dividend Yield of 5.13%.
  2. The company has higher reserves (24.77 cr) compared to borrowings (2.46 cr), indicating strong financial stability.
  1. The stock has a low average ROCE of -8.25%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 79.92, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 147.17, which may not be favorable.
  4. The company has not shown consistent growth in sales (565.77) and profit (-14.31).

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Paramount Communications Ltd:
    1. Net Profit Margin: 7.99%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 13.66% (Industry Average ROCE: %)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 13.67% (Industry Average ROE: %)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 15.50
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 2.12
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. ✗ Stock P/E: 25.8 (Industry average Stock P/E: )
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.16
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

Paramount Communications Ltd. is a Public Limited Listed company incorporated on 05/09/1994 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L74899DL1994PLC061295 and registration number is 061295. Currently company belongs to the Industry of Cables - Telecom. Company’s Total Operating Revenue is Rs. 580.94 Cr. and Equity Capital is Rs. 38.84 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Cables - Power/OthersKH-433, Maulsari Avenue, Westend Greens, Rangpuri New Delhi Delhi 110037pcl@paramountcables.com
http://www.paramountcables.com
Management
NamePosition Held
Mr. Sanjay AggarwalChairman & CEO
Mr. Sandeep AggarwalManaging Director
Mr. Vijay BhushanIndependent Director
Mrs. Malini GuptaIndependent Director
Mr. Vijay MaheshwariIndependent Director
Mrs. Praveena kalaIndependent Director

FAQ

What is the latest fair value of Paramount Communications Ltd?

The latest fair value of Paramount Communications Ltd is ₹106.25.

What is the Market Cap of Paramount Communications Ltd?

The Market Cap of Paramount Communications Ltd is 2,211 Cr..

What is the current Stock Price of Paramount Communications Ltd as on 21 June 2024?

The current stock price of Paramount Communications Ltd as on 21 June 2024 is ₹72.9.

What is the High / Low of Paramount Communications Ltd stocks in FY 2024?

In FY 2024, the High / Low of Paramount Communications Ltd stocks is 117/34.2.

What is the Stock P/E of Paramount Communications Ltd?

The Stock P/E of Paramount Communications Ltd is 25.8.

What is the Book Value of Paramount Communications Ltd?

The Book Value of Paramount Communications Ltd is 20.6.

What is the Dividend Yield of Paramount Communications Ltd?

The Dividend Yield of Paramount Communications Ltd is 0.00 %.

What is the ROCE of Paramount Communications Ltd?

The ROCE of Paramount Communications Ltd is 15.4 %.

What is the ROE of Paramount Communications Ltd?

The ROE of Paramount Communications Ltd is 19.6 %.

What is the Face Value of Paramount Communications Ltd?

The Face Value of Paramount Communications Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Paramount Communications Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE