Paramount Communications Limited (PARACABLES) AI Stock Analysis

• Market Cap: ₹10.22B
• Dividend Yield: N/A
• Average Volume (3M): 79.90K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 1.93
• Revenue Growth: 38.39%
• EPS Growth: -27.69%
• Country: IN
• Employees: 308
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.43
• Shares Outstanding: 305,209,800
• 10 Day Avg. Volume: 81,942
• 30 Day Avg. Volume: 79,904
• PEG Ratio: -1.34
• Price to Book (P/B): 2.18
• Price to Sales (P/S): 0.99
• P/FCF Ratio: 35.75
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ₹35.00 ▼(-8.02% Downside)

Paramount Communications Limited's strong financial performance is a significant positive factor, reflecting robust revenue and profit growth, improved margins, and effective leverage management. However, the technical analysis indicates a bearish trend, with the stock trading below key moving averages and showing oversold conditions. The valuation is moderate, with a reasonable P/E ratio but no dividend yield. These factors collectively result in a balanced overall stock score.

Positive Factors

Revenue Growth

Sustained ~38% revenue growth signals durable demand and successful market penetration in telecom and data-transmission sectors. Over 2-6 months this supports scale advantages, higher bargaining power with suppliers, and recurrent contract opportunities that underpin longer-term top-line resilience.

Improving Profitability

Improving gross, net, EBIT and EBITDA margins indicate lasting operational efficiency and cost control. Higher margin profile enhances cash conversion and reinvestment capacity, making the business more resilient to cyclical demand swings and better positioned for incremental profitability.

Stronger Balance Sheet

A healthier equity mix and reduced leverage lower solvency risk and increase financial flexibility. This durable balance sheet strength supports funding of capex, working capital for large telecom contracts, and shields operations from credit stress over the medium term.

Negative Factors

EPS Contraction

Material negative EPS growth despite revenue gains suggests profit per share has been eroded by non-operating charges, dilution, higher interest, or tax changes. Persisting EPS weakness can curb shareholder returns and limit flexibility for dividend or buyback policy over coming quarters.

Cash-Flow Financing Volatility

Irregular financing cash flows point to inconsistent debt issuance/repayment or equity moves, which can complicate capital planning. Over 2-6 months this volatility may restrict steady investment in capacity or force higher-cost funding during growth phases, raising execution risk.

High Systematic Risk

A beta near 1.93 indicates elevated sensitivity to market swings. For a capital-intensive communications equipment provider, this raises the probability that demand downturns or higher financing costs materially compress cash flows and delay projects, increasing execution and funding risk.

Paramount Communications Limited Business Overview & Revenue Model

Company Description

Paramount Communications Limited, together with its subsidiaries, engages in the manufacture and sale of wire and cables to public and private sector companies in India. The company provides power cables, including high tension and low tension power and aerial bunch cables; screened and unscreened type control cables; instrumentation cables for process control, A/D converters, and other microprocessor based instrumentation circuits; and thermocouple extension and compensating cables for connecting thermocouples to control and measurement devices. It also offers telecom cables, such as optical fiber, jelly filled, switched board, fiber to the home, and installation cables, as well as buried service and jumper wires. In addition, the company provides underground railway signaling and quad axle counter cables, and specialized instrumentation cables for underground and elevated metro projects; fire survival, XLPE, multicore round, solar, PTFE, and special cables; and building and PVC wires. Further, it offers turnkey services for construction, design, supply, engineering, and installation testing and commissioning. The company sells its products under the Paramount Cables brand name. It serves power, railways, telecom, IT and communications, construction, defense, space research, electronics, export, specialized EPC, renewable, and oil and gas sectors. Paramount Communications Limited was founded in 1955 and is headquartered in New Delhi, India.

How the Company Makes Money

PARACABLES generates revenue through multiple streams, primarily focusing on the sale of its core products such as fiber optic and copper cables. The company employs a direct sales model, catering to both wholesale and retail customers, including telecommunications companies, data centers, and large enterprises. In addition to product sales, PARACABLES also offers installation and maintenance services, which provide additional revenue. Strategic partnerships with key players in the telecommunications industry further enhance its market reach and sales potential. The company may also benefit from government contracts and industry-specific projects, contributing to its overall earnings.

Paramount Communications Limited Financial Statement Overview

Summary

Paramount Communications Limited exhibits a strong financial position with impressive revenue and profit growth, improved margins, and effective leverage management. The company has successfully transitioned to positive free cash flow, enhancing its financial flexibility. Despite some volatility in cash flows, the overall financial health is robust, positioning the company well for future growth.

Income Statement

Paramount Communications Limited has demonstrated strong revenue growth, with a significant increase from 2024 to 2025. The gross profit margin and net profit margin have improved, indicating enhanced profitability. The EBIT and EBITDA margins are robust, reflecting efficient operations and cost management.

Balance Sheet

The company's balance sheet shows a healthy equity ratio, with a substantial portion of assets financed by equity. The debt-to-equity ratio has improved, suggesting reduced leverage risk. Return on equity is strong, indicating effective use of shareholder funds.

Cash Flow

The cash flow statement reveals a positive free cash flow growth, with a significant turnaround from negative to positive free cash flow. The operating cash flow to net income ratio is favorable, indicating good cash generation relative to net income. However, fluctuations in cash flow from financing activities suggest potential volatility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	17.06B	15.76B	10.57B	7.83B	5.74B	5.13B
Gross Profit	4.20B	3.56B	2.62B	2.13B	1.17B	973.44M
EBITDA	1.34B	1.34B	972.63M	642.02M	241.59M	192.18M
Net Income	801.70M	869.70M	856.32M	477.68M	82.05M	31.00M
Balance Sheet
Total Assets	0.00	9.08B	8.27B	5.04B	4.81B	4.71B
Cash, Cash Equivalents and Short-Term Investments	395.43M	233.74M	603.01M	279.94M	13.87M	72.66M
Total Debt	0.00	332.25M	1.03B	1.60B	1.87B	2.02B
Total Liabilities	-7.17B	1.91B	2.00B	2.09B	2.79B	2.78B
Stockholders Equity	7.17B	7.17B	6.26B	2.95B	2.02B	1.93B
Cash Flow
Free Cash Flow	0.00	437.05M	-1.53B	21.48M	117.79M	86.01M
Operating Cash Flow	0.00	1.04B	-1.01B	110.96M	146.44M	143.34M
Investing Cash Flow	0.00	-12.18M	-958.24M	-163.44M	-10.71M	-32.65M
Financing Cash Flow	0.00	-840.53M	1.83B	218.35M	-194.52M	-53.29M

Paramount Communications Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 38.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PARACABLES, the sentiment is Negative. The current price of 38.05 is above the 20-day moving average (MA) of 34.66, above the 50-day MA of 36.49, and below the 200-day MA of 47.07, indicating a bearish trend. The MACD of -1.14 indicates Negative momentum. The RSI at 43.53 is Neutral, neither overbought nor oversold. The STOCH value of 60.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:PARACABLES.

Paramount Communications Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CORDSCABLE	76 Outperform	₹2.10B	12.67	―	0.52%	26.59%	42.18%
PARACABLES	62 Neutral	₹10.22B	13.97	―	―	38.39%	-27.69%
UNIVCABLES	62 Neutral	₹25.23B	17.27	―	0.45%	24.03%	51.58%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
DVL	60 Neutral	₹8.98B	13.41	―	1.75%	-16.02%	-61.61%
BLKASHYAP	52 Neutral	₹10.72B	12,507.89	―	―	-4.30%	-99.86%