Paramount Communications - Targets Rs 1000 Crore Revenue With 9-10% Ebitda Margins In FY24: Anand Rathi

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Anand Rathi Report.One of India’s leading cable and wire manufacturing companies, which serves prestigious public and private sector clients, Paramount Communications Ltd. has two integrated units, one each at Rajasthan and Haryana, over 500 institutional clients, more than 2,500 stock keeping units and a widespread distribution network (more than 10,000 retail touch points). It aims at Rs 10 billion revenue in FY24, which would be 26% higher YoY. The strong performance targets can be attributed to strong domestic demand and rising exports, which made up 50% of its FY23 revenue and which has been rising since FY22..Key growth driversTapping growth opportunities in transmission and distribution since it has the mandatory pre-qualifications from the transmission and distribution sector.Orders can come from various sectors like energy, transportation, rail electrification, metro-rail, factories and buildings.Expansion across Australian and European markets..Valuation We do not cover Paramount. Hence, we do not have estimates and a rating on it. At the current market price, the stock trades at 26 times the FY23 earnings per share of Rs 2.4. More than 90% of its outstanding debt is with the asset reconsturction company. A significant reduction in this debt or swapping of ARC debt with any leading bank could be an important trigger to watch. Swapping of debt with a bank could result in higher finance costs and is an important monitorable. .Key risks: Significant delay in repaying its debt with the ARC can be an important risk to watch.Offtake is critical as Paramount would be competing with stronger peers with non-levered balance sheets..Click on the attachment to read the full report:.Adani Ports - Sailing Toward New Horizons: Motilal Oswal Initiates Coverage With A 'Buy'.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Paramount Communications - Targets Rs 1000 Crore Revenue With 9-10% Ebitda Margins In FY24: Anand Rathi

The strong performance targets can be attributed to strong domestic demand, rising exports, which made up 50% of its FY23 revenue.

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