Why is Paramount Communications Ltd ?
1
Healthy long term growth as Net Sales has grown by an annual rate of 30.29% and Operating profit at 54.89%
2
Flat results in Jun 26
- INTEREST(Latest six months) At Rs 14.37 cr has Grown at 48.30%
- PAT(9M) At Rs 47.68 cr has Grown at -20.32%
- ROCE(HY) Lowest at 11.32%
3
With ROCE of 5.9, it has a Fair valuation with a 2.6 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 36.46%, its profits have fallen by -24%
4
Market Beating Performance
- Even though the market (BSE500) has generated negative returns of -1.65% in the last 1 year, the stock has been able to generate 36.46% returns
How much should you hold?
- Overall Portfolio exposure to Paramount Comm. should be less than 10%
- Overall Portfolio exposure to Cables - Electricals should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Cables - Electricals)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Paramount Comm. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Paramount Comm.
37.6%
0.61
59.72%
Sensex
-8.67%
-0.64
13.46%
Quality key factors
Factor
Value
Sales Growth (5y)
30.29%
EBIT Growth (5y)
54.89%
EBIT to Interest (avg)
7.13
Debt to EBITDA (avg)
3.52
Net Debt to Equity (avg)
0.12
Sales to Capital Employed (avg)
1.77
Tax Ratio
25.82%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
2.29%
ROCE (avg)
8.91%
ROE (avg)
10.74%
Valuation Key Factors 
Factor
Value
P/E Ratio
35
Industry P/E
44
Price to Book Value
2.76
EV to EBIT
32.13
EV to EBITDA
26.07
EV to Capital Employed
2.58
EV to Sales
1.12
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
5.87%
ROE (Latest)
7.68%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Bullish
Bullish
Technical Movement
9What is working for the Company
PBT LESS OI(Q)
At Rs 23.45 cr has Grown at 213.50%
OPERATING PROFIT TO INTEREST(Q)
Highest at 5.06 times
PBDIT(Q)
Highest at Rs 34.74 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 6.56%
-10What is not working for the Company
INTEREST(Latest six months)
At Rs 14.37 cr has Grown at 48.30%
PAT(9M)
At Rs 47.68 cr has Grown at -20.32%
ROCE(HY)
Lowest at 11.32%
Loading Valuation Snapshot...
Here's what is working for Paramount Comm.
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 23.45 cr has Grown at 213.50%
Year on Year (YoY)MOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Operating Profit to Interest - Quarterly
Highest at 5.06 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Profit (PBDIT) - Quarterly
Highest at Rs 34.74 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 6.56%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 23.45 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Here's what is not working for Paramount Comm.
Interest - Latest six months
At Rs 14.37 cr has Grown at 48.30%
over previous Half yearly periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Profit After Tax (PAT) - Nine Monthly
At Rs 47.68 cr has Grown at -20.32%
Year on Year (YoY)MOJO Watch
Near term PAT trend is negative
PAT (Rs Cr)






