Cables manufacturer Paramount Communications may acquire 100% stake in Valens Technologies

Shares of Paramount Communications, a leading player in the cables and electricals industry, have delivered impressive returns to its shareholders. According to exchange data, the small-cap stock has turned out to be a multibagger in just one year.

The company has now announced that its board could clear a proposal to buy a 100 per cent stake in Valens Technologies Private Limited, according to an exchange filing. The decision will likely be taken at the next board meeting on August 23. 

Valens Technologies is a manufacturer of high-density polyethylene (HDPE) pipes. It is a type of flexible plastic pipe used for fluid and gas transfer and is often used to replace ageing concrete or steel mains pipelines.

Paramount Communications shares rose 40 per cent in the past month. In six months, it has delivered a 55 per cent return to investors. In the last year alone, its share has seen a remarkable jump of more than 280 per cent.

The company has a market capitalization of Rs 1,313.17 crore, according to the BSE website.

Meanwhile, the company in June 2023 quarter reported a jump of more than 100 per cent in its net profit at Rs 14.5 crore. It had clocked a net profit of Rs 7.03 crore in the corresponding quarter of the previous fiscal. The firm's revenue from operations stood at Rs 210.54 crore, showing an increase of 29 per cent from June 2022 quarter when the same was Rs 163.7 crore.

Earlier in the day, equity benchmark indices Sensex and Nifty closed higher on Monday after two days of decline. In a range-bound trade, the 30-share BSE Sensex climbed 267.43 points or 0.41 per cent to settle at 65,216.09. During the day, it jumped 387.16 points or 0.59 per cent to 65,335.82. The NSE Nifty gained 83.45 points or 0.43 per cent to end at 19,393.60.