Paramount Communications Limited (PARACABLES) AI Stock Analysis

• Market Cap: ₹10.15B
• Dividend Yield: N/A
• Average Volume (3M): 79.90K
• Price to Earnings (P/E): 40.5
• Beta (1Y): 1.92
• 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: ₹35.00 ▼(-8.02% 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 ~32.7% revenue growth demonstrates expanding end-market demand or share gains in cables/wires. Over 2-6 months this supports higher capacity utilization, stronger order backlogs and scalability of fixed costs, underpinning recurring sales and durable top-line momentum.

Improved Profitability

Improving gross and net margins, plus robust EBIT/EBITDA, indicate better pricing power and operational efficiency. These margin gains are structural if driven by process improvements and mix shifts, supporting sustainable earnings and reinvestment capacity over the medium term.

Free Cash Flow Turnaround

A move from negative to positive free cash flow shows the business is generating internal liquidity, reducing reliance on external funding. Durable FCF enables capex funding, debt paydown or shareholder returns and strengthens financial flexibility over the coming quarters.

Negative Factors

Per-Share Earnings Weakness

A ~41% decline in EPS despite revenue growth signals per-share earnings underperformance, possibly from dilution, non-operating items or higher financing costs. Until EPS recovers, investor returns and per-share economics remain impaired and may limit capital-raising options.

Financing Cash Flow Volatility

Volatile financing cash flows imply irregular borrowing, repayments or equity moves, which can raise refinancing risk and increase cost of capital. This unpredictability can constrain strategic investment and raises the chance of funding stress during slower cycles.

Commodity Input Exposure

Cables/wires are exposed to metals and polymer price swings. Structural commodity volatility can compress margins if cost pass-through is delayed or competitive constraints limit pricing, making profitability sensitive to raw material cycles absent hedging or long-term supply contracts.

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

Paramount Communications Limited primarily makes money by manufacturing wires and cables and selling them to customers across power, infrastructure, industrial, and related electrical markets. Revenue is generated through (1) product sales of manufactured cables/wires, typically priced per contract or purchase order based on specifications (e.g., type, conductor material, insulation, ratings), volumes, and delivery terms; and (2) project/contract-based supply where the company fulfills larger, specification-driven orders for utilities, EPC contractors, or industrial buyers. The company’s earnings are influenced by execution volume (capacity utilization and order intake), realized selling prices, and input costs (notably metals and polymers), which can affect margins depending on how effectively cost changes are passed through to customers. Specific details on major customer concentration, named partnerships, aftermarket/services, or segment-level revenue breakdown are null.

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	17.78B	15.76B	10.57B	7.83B	5.74B	5.13B
Gross Profit	4.52B	3.56B	2.62B	2.13B	1.17B	973.44M
EBITDA	1.26B	1.34B	972.63M	642.02M	241.59M	192.18M
Net Income	730.89M	869.70M	856.32M	477.68M	82.05M	31.00M
Balance Sheet
Total Assets	10.08B	9.08B	8.27B	5.04B	4.81B	4.71B
Cash, Cash Equivalents and Short-Term Investments	346.60M	233.74M	603.01M	279.94M	13.87M	72.66M
Total Debt	1.02B	332.25M	1.03B	1.60B	1.87B	2.02B
Total Liabilities	2.58B	1.91B	2.00B	2.09B	2.79B	2.78B
Stockholders Equity	7.49B	7.17B	6.26B	2.95B	2.02B	1.93B
Cash Flow
Free Cash Flow	-813.30M	437.05M	-1.53B	21.48M	117.79M	86.01M
Operating Cash Flow	-562.80M	1.04B	-1.01B	110.96M	146.44M	143.34M
Investing Cash Flow	-243.30M	-12.18M	-958.24M	-163.44M	-10.71M	-32.65M
Financing Cash Flow	611.20M	-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 34.21, above the 50-day MA of 35.36, and below the 200-day MA of 44.65, indicating a bearish trend. The MACD of -0.97 indicates Positive momentum. The RSI at 44.85 is Neutral, neither overbought nor oversold. The STOCH value of 46.95 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	₹1.88B	12.24	―	0.52%	26.59%	42.18%
PARACABLES	70 Outperform	₹10.15B	40.47	―	―	38.39%	-27.69%
UNIVCABLES	62 Neutral	₹20.42B	28.34	―	0.45%	24.03%	51.58%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
DVL	60 Neutral	₹7.28B	41.40	―	1.75%	-16.02%	-61.61%
BLKASHYAP	52 Neutral	₹10.79B	25.32	―	―	-4.30%	-99.86%