Paramount Communications Ltd - 530555

Name of Company	Paramount Communications Ltd
BSE Code	530555
NSE Code
ICICI Code
Established	1955
My Take	So-So
Headquarters	New Delhi
Promoters
Story	Listed since 1995, this company was started by Shyam Sunder Aggarwal in 1955 – Shyam has passed away and Sanjay Aggarwal has taken his reins. Became an MNC in 2001 by the acquisition of UK based AEI cables. Clientele includes, NTPS, DoT, BHEL, PGCIL, L&T, Reliance Energy, RIL, BSNL, MTNL, ABB, Essar, RCOM, Indian Railways – a few companies in Kenya, Iraq, Sri Lanka.
Sector	Cables
Sub-sector	Power, telecom, railway cables
Website	http://paramountcables.com http://twitter.com/ParamountCables (they are even on twitterJ)
Positives	86 Cr market cap for a 350 Cr FY10 revenues seems low, but a look at its net profit, does not say the same story. Company had NPM > 7.5% from FY06 to FY08. The 140 Cr reserves is greater than the 86 Cr the company is valued at today(consider debt as well given below). Starting to focus on lead free fire-proof wires helps entry into domestic market and also is in futuristic as lead has been banned in a number of countries.
Negatives	Has not paid dividends after 2008. FY09 was a loss making year. FY10 just managed profits. Sanjay Aggarwal has pledged around half of his shares (3% of the total company). Not sure why 2009 and 2010 were bad years – not sure how long this will last as well. FY09 shows a 350 Cr debt in FY09. Havells and Finolex are very big companies compared to paramount (6 times and 4 times the revenue). Less than 30% promoter holding.
Peers	Havells, Finolex
News
Price @ blogged	10 (19-Aug-10)