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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Paramount Communications Ltd

About the Company - Paramount Communications Ltd

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

Paramount Communications Ltd. Share Price Update

Share PriceValue
Today₹87.05
Previous Day₹91.60

Basic Stock Data of Paramount Communications Ltd

Market Cap 2,486 Cr.
Current Price 88.9
High / Low117/27.9
Stock P/E35.6
Book Value 14.2
Dividend Yield0.00 %
ROCE13.8 %
ROE21.2 %
Face Value 2.00

Data Source: screener.in

Competitors of Paramount Communications Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Vindhya Telelinks Ltd 3,044 Cr. 2,5692,899/1,50611.0 3,1760.58 %8.11 %5.58 % 10.0
Surana Telecom and Power Ltd 238 Cr. 17.521.0/7.60 9.370.00 %0.15 %1.15 % 1.00
Tamil Nadu Telecommunications Ltd 64.2 Cr. 14.017.3/5.30 34.00.00 %%% 10.0
Sterlite Technologies Ltd 5,795 Cr. 145179/12857.5 53.50.69 %11.0 %6.32 % 2.00
Industry Average77.55 Cr44.6317.1324.970.32%4.82%3.26%5.75

Paramount Communications Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales11715216496138163183164213218202211252
Expenses11414715994133157176156199203191194231
Operating Profit456256781415111721
OPM %3%3%3%3%4%4%4%5%7%7%6%8%8%
Other Income1111112334722
Interest2212221122221
Depreciation2222222222222
Profit before tax023-123571314141520
Tax %0%0%0%0%0%0%0%0%0%0%0%0%0%
Net Profit023-123571314141519
EPS in Rs0.010.100.13-0.050.080.140.250.360.650.740.710.620.82

Paramount Communications Ltd Quarterly Chart

Paramount Communications Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales699677412451308314433614606518580794883
Expenses713685431486351362436571561501559746819
Operating Profit-14-8-20-35-44-48-3424517204864
OPM %-2%-1%-5%-8%-14%-15%-1%7%7%3%4%6%7%
Other Income2045-2942923133341614
Interest44494261742048117677
Depreciation1312119910991191099
Profit before tax-50-24-101-101-12415152926384862
Tax %-0%-0%0%0%0%0%0%0%0%0%0%0%
Net Profit-50-25-101-101-12415152926384862
EPS in Rs-5.42-1.96-8.05-8.06-9.891.171.031.701.430.160.422.462.89
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Paramount Communications Ltd Profit & Loss Yearly Chart

Paramount Communications Ltd Growth

Compounded Sales Growth
10 Years:2%
5 Years:13%
3 Years:9%
TTM:22%
Compounded Profit Growth
10 Years:11%
5 Years:43%
3 Years:22%
TTM:80%
Stock Price CAGR
10 Years:49%
5 Years:51%
3 Years:118%
1 Year:133%
Return on Equity
10 Years:%
5 Years:13%
3 Years:10%
Last Year:21%

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

Paramount Communications Ltd 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

Paramount Communications Ltd 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%

Paramount Communications Ltd Financial Efficiency Indicators Chart

Paramount Communications Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Nov 2023
Promoters62.12%62.12%62.12%62.12%62.12%62.12%62.12%62.12%62.12%63.90%62.68%53.51%
FIIs1.51%0.06%0.01%0.00%0.00%0.00%0.06%0.07%0.55%0.86%0.52%7.61%
DIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.21%0.10%
Public36.38%37.83%37.88%37.88%37.88%37.88%37.82%37.80%37.34%35.24%36.58%38.79%
No. of Shareholders27,19933,80840,45642,10644,49444,91544,15240,81943,69644,76659,33362,237

Paramount Communications Ltd Shareholding Pattern Chart

No. of Paramount Communications Ltd Shareholders

This stock is not held by any mutual fund

Paramount Communications Ltd ROCE Trend

Paramount Communications Ltd EPS Trend

Paramount Communications Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)2.400.420.171.531.74
Diluted EPS (Rs.)2.400.420.171.521.74
Cash EPS (Rs.)2.940.910.622.032.20
Book Value[Excl.RevalReserv]/Share (Rs.)12.8710.399.949.768.23
Book Value[Incl.RevalReserv]/Share (Rs.)12.8710.399.949.768.23
Revenue From Operations / Share (Rs.)41.0229.9226.7332.9235.77
PBDIT / Share (Rs.)3.311.240.982.602.66
PBIT / Share (Rs.)2.830.750.522.002.16
PBT / Share (Rs.)2.460.420.151.431.70
Net Profit / Share (Rs.)2.460.420.151.431.70
NP After MI And SOA / Share (Rs.)2.460.420.151.431.70
PBDIT Margin (%)8.064.153.707.907.44
PBIT Margin (%)6.892.511.956.086.04
PBT Margin (%)5.991.410.594.344.74
Net Profit Margin (%)5.991.410.594.344.74
NP After MI And SOA Margin (%)5.991.410.594.344.74
Return on Networth / Equity (%)19.114.061.6014.6620.61
Return on Capital Employeed (%)13.393.942.679.6110.92
Return On Assets (%)9.471.700.655.146.21
Long Term Debt / Equity (X)0.440.770.901.031.39
Total Debt / Equity (X)0.630.860.901.031.39
Asset Turnover Ratio (%)1.621.221.061.241.43
Current Ratio (X)3.902.993.382.742.48
Quick Ratio (X)2.691.952.281.891.88
Inventory Turnover Ratio (X)5.154.283.805.269.51
Interest Coverage Ratio (X)8.953.772.734.555.74
Interest Coverage Ratio (Post Tax) (X)7.662.281.443.504.66
Enterprise Value (Cr.)733.19349.96312.68293.12377.73
EV / Net Operating Revenue (X)0.920.600.600.480.61
EV / EBITDA (X)11.4214.4916.276.128.25
MarketCap / Net Operating Revenue (X)0.760.320.300.200.31
Price / BV (X)2.420.930.820.681.36
Price / Net Operating Revenue (X)0.760.320.300.200.31
EarningsYield0.070.040.010.210.15

Paramount Communications Ltd Profitability Ratios (%)

Paramount Communications Ltd Liquidity Ratios

Paramount Communications Ltd Liquidity Ratios (%)

Paramount Communications Ltd Interest Coverage Ratios (%)

Paramount Communications Ltd Valuation Ratios

Fair Value / Intrinsic Value of Paramount Communications Ltd

Fair Value: ₹109.31

The stock is undervalued by 22.96% compared to the current price ₹88.9

*Investments are subject to market risks

Strength and Weakness of Paramount Communications Ltd

StrengthWeakness
  1. The stock is trading at a low valuation with an average P/B ratio of 1.65 and average Dividend Yield of 4.69%.
  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 (560.69) and profit (-14.92).

Should I Buy Paramount Communications Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Paramount Communications Ltd:
    1. Net Profit Margin: 5.99%
      • 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: 13.39% (Industry Average ROCE: 4.82%)
      • 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. Interest Coverage Ratio (Post Tax): 7.66
      • 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.
    4. Quick Ratio: 2.69
      • 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.
    5. ✗ Stock P/E: 35.9 (Industry average Stock P/E: 16.03)
      • 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.
    6. ✓ Total Debt / Equity: 0.63
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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