Paramount Communications Limited (PARACABLES) AI Stock Analysis

• Market Cap: ₹10.43B
• Dividend Yield: N/A
• Average Volume (3M): 79.90K
• Price to Earnings (P/E): 18.0
• Beta (1Y): 2.07
• Revenue Growth: 38.39%
• EPS Growth: -27.69%
• Country: IN
• Employees: 308
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.24
• 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: 70 Outperform
• Price Target: ₹38.00 ▼(-0.13% Downside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

The score is driven primarily by strong fundamental financial performance (growth, improving profitability, healthier leverage, and a shift to positive free cash flow). Offsetting this, technical signals are mixed with the stock still below longer-term moving averages and a negative MACD, while valuation appears moderate based on the available P/E data.

Positive Factors

Revenue Growth

Sustained revenue growth above 30% indicates durable demand for cables and wires across power, infrastructure and industrial end markets. Over 2–6 months this supports higher capacity utilization, stronger negotiating leverage with suppliers, and an increased ability to invest in scale or new projects.

Margin Improvement

Improving gross and net margins, plus robust EBIT/EBITDA, reflect better cost control and operating efficiency. If sustained, higher margins expand free cash generation, provide resilience to raw-material swings, and allow reinvestment in productivity or higher-return product segments.

Balance Sheet Strength

A healthier equity ratio and lower leverage reduce refinancing and solvency risk across business cycles. Strong ROE indicates effective capital allocation. This financial flexibility supports bidding large contracts, funding working capital needs, and investing capex without over-reliance on volatile debt markets.

Negative Factors

EPS Decline

A sharp negative EPS growth despite revenue expansion signals uneven earnings quality, likely from margin pressure, one-offs, or non-operating items. Persisting EPS volatility can limit retained earnings, constrain investment or dividend policies, and raise investor scrutiny of sustainable profitability.

Financing Cashflow Volatility

While free cash flow turned positive, volatile financing cash flows imply swings in debt issuance, repayments, or equity actions. This uneven financing pattern can signal episodic reliance on external capital for growth or working capital, increasing refinancing and cost-of-capital risk over time.

Raw-Material Exposure

The business is structurally exposed to copper, aluminum and polymer price cycles. Persistent commodity inflation or supply constraints can erode margins if pass-through is delayed or limited by competitive tendering, making long-term margin predictability weaker in volatile input-cost environments.

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

Strong income statement performance (revenue growth, improved gross and net margins, robust EBIT/EBITDA margins) and a solid balance sheet (healthy equity ratio, improving debt-to-equity, strong ROE). Cash flow is improving with a move to positive free cash flow, but financing cash flow volatility limits the score.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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: Positive
• 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 36.45, above the 50-day MA of 36.16, and below the 200-day MA of 45.62, indicating a bearish trend. The MACD of -0.61 indicates Positive momentum. The RSI at 39.42 is Neutral, neither overbought nor oversold. The STOCH value of 23.98 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	₹2.17B	12.89	―	0.52%	26.59%	42.18%
PARACABLES	70 Outperform	₹10.43B	17.98	―	―	38.39%	-27.69%
UNIVCABLES	62 Neutral	₹23.84B	15.14	―	0.45%	24.03%	51.58%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
DVL	60 Neutral	₹8.15B	-39.90	―	1.75%	-16.02%	-61.61%
BLKASHYAP	52 Neutral	₹11.37B	105.26	―	―	-4.30%	-99.86%