Paramount Comm. (PARACABLES)

FairStock Score: 35/100 — MIXED

Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Paramount Communications gives me mixed signals. Sales rose 17.69%, but profit fell 66.99%. That alone tells me the company is generating revenue without converting it into owner earnings. In the latest quarter, sales were ₹461 Cr, yet net profit was only ₹7 Cr — that is a razor-thin margin, roughly 1.5%. As an investor, I prefer a business that earns a margin of safety, not just on price, but in earnings power. The balance sheet looks acceptable: debt/equity is 0.14, so financial distress is not the issue. ROCE of 16.30% shows the capital employed is earning a fair return. But ROE is only 8.67%, which is below my threshold for a compounding asset. Dividend yield is 0.00%, so I receive no cash while I wait. Promoter holding of 49.12% is decent alignment, but it does not guarantee good capital allocation. At ₹38.07, the P/E is 18.35, based on depressed profits; this is not a cheap price. P/B of 1.70 means I am paying a premium over book value of ₹22.37. The Piotroski F-score of 4/9 is a serious warning. The PEG of 1.04 is misleading because it uses sales growth, while profit growth is negative. This has the feel of a cyclical business whose earnings have hit a soft patch. The stock is down from ₹75.70, but a fallen price is not my margin of safety. I want to see several quarters of consistent profit recovery, margin expansion, and a clearer moat. Until then, this belongs on my watchlist, not in my portfolio.

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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer