Paramount Communications rallies 12% on plans to set up manufacturing unit

Shares of Paramount Communications surged 7.18 per cent at Rs 3,184.95 per share on the BSE in Tuesday’s intraday trade. This came after the company said that it has been allotted 30 acres of land in the Narmadapuram district of Madhya Pradesh for setting up a manufacturing plant.

 

“MP Industrial Development Corporation Ltd. (MPIDC) has issued a Letter of Intent (LOI) dated December 7, 2024 in response to our application for allotment of land admeasuring 30 acres at the Manufacturing Zone for Power and Renewable Energy Equipment, Mohasa - Babai, District Narmadapuram, Madhya Pradesh.Industrial Land will be allotted to our company on lease for a period of 99 years for setting up an industrial unit for manufacturing of DC and AC cables,” the company said in an exchange filing on Tuesday.

 

The company, part of the Paramount group, is one of India's leading cable manufacturers, specialising in power and communication cables. It offers comprehensive cabling solutions to various sectors, including power, telecom, information technology, railways, petrochemicals, and the industrial sector. The company operates two manufacturing units, located in Dharuhera, Haryana, and Khushkhera, Rajasthan.

 

On the financial front, Paramount Communications reported a 4.31 per cent increase in net profit, reaching Rs 20.33 crore for the quarter ended September 2024, compared to Rs 19.49 crore in the same period last year. Sales grew by 40.98 per cent, rising to Rs 355.89 crore in Q2 FY25, up from Rs 252.44 crore in the corresponding quarter of FY24.

 

Meanwhile, on the equities side, Waaree Energies’s stock has underperformed the market year to date as it has fallen 5 per cent, while gaining 20 per cent in the last one year. In comparison BSE Sensex has risen 12 per cent year to date and 16 per cent in a year. 

 

The company has a total market capitalisation of Rs 2,528.22 crore.  Its shares are trading at a price to earnings multiple of 14.36 times and at an earning per share of Rs 3.18. 

 

At 2:06 PM; the shares of the company were trading 8.65 per cent higher at Rs 82.42 a piece. By comparison, the BSE Sensex was down 0.30 per cent at 81,260.68 level.