Why is Paramount Communications Ltd ?
1
Healthy long term growth as Net Sales has grown by an annual rate of 30.48% and Operating profit at 37.20%
2
The company has declared Negative results for the last 3 consecutive quarters
- PBT LESS OI(Q) At Rs 18.53 cr has Fallen at -21.32%
- PAT(Latest six months) At Rs 27.98 cr has Grown at -32.32%
- ROCE(HY) Lowest at 11.32%
3
With ROE of 9.8, it has a Attractive valuation with a 2.4 Price to Book Value
- 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 21.66%, its profits have fallen by -40.7%
4
Despite the size of the company, domestic mutual funds hold only 0% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
5
Market Beating performance in long term as well as near term
- Along with generating 21.66% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months
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.
21.66%
0.39
55.64%
Sensex
-6.68%
-0.51
12.94%
Quality key factors
Factor
Value
Sales Growth (5y)
30.48%
EBIT Growth (5y)
37.20%
EBIT to Interest (avg)
6.69
Debt to EBITDA (avg)
4.56
Net Debt to Equity (avg)
0.10
Sales to Capital Employed (avg)
1.69
Tax Ratio
26.40%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
2.32%
ROCE (avg)
8.53%
ROE (avg)
10.94%
Valuation Key Factors 
Factor
Value
P/E Ratio
31
Industry P/E
47
Price to Book Value
2.42
EV to EBIT
35.61
EV to EBITDA
27.71
EV to Capital Employed
2.29
EV to Sales
1.02
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
8.78%
ROE (Latest)
9.75%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
Bullish
Technical Movement
4What is working for the Company
NET SALES(Q)
Highest at Rs 573.31 cr
PAT(Q)
Highest at Rs 20.52 cr.
EPS(Q)
Highest at Rs 0.67
-18What is not working for the Company
PBT LESS OI(Q)
At Rs 18.53 cr has Fallen at -21.32%
PAT(Latest six months)
At Rs 27.98 cr has Grown at -32.32%
ROCE(HY)
Lowest at 11.32%
INTEREST(Q)
Highest at Rs 7.51 cr
Loading Valuation Snapshot...
Here's what is working for Paramount Comm.
Net Sales - Quarterly
Highest at Rs 573.31 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 20.52 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 0.67
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Paramount Comm.
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 18.53 cr has Fallen at -21.32%
Year on Year (YoY)MOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Interest - Quarterly
At Rs 7.51 cr has Grown at 34.59%
Quarter on Quarter (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Interest - Quarterly
Highest at Rs 7.51 cr
in the last five quarters and Increased by 34.59 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)






